Taiwan Semiconductor Manufacturing Company reached a market value of over $1.246 trillion on Friday in a major milestone for the AI giant.
Taiwan Semiconductor Manufacturing Company (TSMC) officially reached a market value of $1 trillion at the close on Friday. The leading chipmaker became the first Asian company since 2007 to achieve such a milestone.
TSMC shares have increased nearly 50% since April, as surging demand for artificial intelligence (AI) continues to drive growth. The company is now the ninth most valuable company in the world by market capitalization.
As the main chip supplier for Apple and Nvidia, TSMC has profited well from the AI boom. Despite concerns around global tariffs, its AI chips have been in high demand. The firm’s advanced 5-nanometre (nm) and 3-nm chips are used in products like Nvidia’s H100 GPUs and Apple’s M3 chips for MacBooks.
Both semiconductor chips account for nearly 60% of TSMC’s wafer revenue, making them a key part of company growth. As AMD CEO Lisa Su recently noted, the AI chip market has the potential to reach $500 billion by 2028. This highlights the scale of opportunities available to the industry’s leading players going forward.
TSMC stock soars on global AI boom
TSMC’s American depositary receipts were valued at around $1.246 trillion as of the close on Friday. However, while the company’s stock price has surged in value, it also posted impressive second-quarter results, released on 17 July.
Net income climbed 61% year-on-year to NT$398.3 billion, beating forecasts, while revenue rose 39% to NT$933.2 billion. This strong performance can be attributed to increased demand for high-performance computing, including AI and 5G applications. Such products now account for around 60% of TSMC’s total revenue.
Following these strong results, the firm raised its full-year 2025 revenue growth forecast to approximately 30% in US dollar terms. The leadership of TSMC appears confident the AI boom will continue to fuel growth. Company CEO, C.C. Wei has noted strong demand for AI chips, despite concerns about global tariffs.
In light of this, the company has raised its full-year 2025 revenue growth forecast to approximately 30% in US dollar terms. TSMC’s leadership is confident the AI boom will continue to fuel growth. Company CEO C.C. Wei noted a continued appetite for AI chips, despite global tariff concerns.
She said: “Looking into second half of 2025 we have not seen any change in our customers behaviour so far. However, we understand there are uncertainties and risk from the potential impact of tariff policies.”
TSMC makes about 67% of the world’s chips for other companies. It was the first contract chip manufacturer to focus only on making chips, rather than only designing them. This gives TSMC a big advantage in size and pricing, in a market that is now crucial for global progress.
Remember to keep track of all the very latest Market News at FXTrustScore.com.
