(Bloomberg) – Taiwan Semiconductor Manufacturing Co. (TSM, 2330.TW) shares have hit a record high, with the world’s largest contract semiconductor maker on track to cap its best annual stock performance in 25 years.
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Shares rose as much as 1.4% in Taipei on Tuesday, briefly surpassing their Nov. 8 high, but have since erased the gains and remained flat. The move came as U.S. semiconductor stocks, including major customer Nvidia, rose overnight. TSMC stock is up 82% this year as investor enthusiasm for artificial intelligence deals continues.
“For us, TSMC remains the best vehicle for tackling the AI theme at a reasonable valuation, without picking winners or technologies,” said Kevin Netto, head of Asian equities at Financière d’El Echiquier. said. The next thing to watch will be Nvidia’s (NVDA) presentation at CES 2025 next month and TSMC’s future results and guidance, he added.
With a list of clients that also includes Apple Inc. and Advanced Micro Devices Inc., TSMC has been a big beneficiary of the boom in AI spending. The company expects sales to rise 36% in the December quarter and gross profit margin to be 58.3%, the highest since 2022.
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