"Thank You NVIDIA" TSMC Nears $1 Trillion Market Cap Club

Stock Price Rises 70% This Year Due to Nvidia Effect
Goldman Sachs, Citi, and Others Raise Target Prices One After Another

Taiwanese semiconductor company TSMC is on the verge of joining the 'trillion-dollar market cap club' thanks to 'AI superstar' Nvidia. Benefiting greatly from Nvidia's rise to become the world's most valuable company, TSMC has also surpassed Berkshire Hathaway to become the 8th largest company by market capitalization.

According to the New York Stock Exchange (NYSE) on the 19th (local time), TSMC closed at $179.69 per share, up 1.38% from the previous day. Its market cap increased to $932 billion, overtaking Warren Buffett-led Berkshire Hathaway to rank as the 8th largest company by market value.

TSMC, a partner of Nvidia, has seen its stock price rise more than 70% since the beginning of the year. TSMC mass-produces the graphics processing units (GPUs) designed by Nvidia and is responsible for packaging that combines GPUs with high-bandwidth memory (HBM). This has caused TSMC's stock price to move in tandem with Nvidia's. The previous day, Nvidia closed at $135.58, up 3.51%, with its market cap swelling to $3.34 trillion, surpassing Microsoft (MS) and Apple to become the world's most valuable company.

Wall Street expects TSMC's stock price to continue its strong performance due to surging AI demand and potential price increases in 2025, leading to successive upward revisions of its target price.

Goldman Sachs, a U.S. investment bank (IB), raised TSMC's target price by 19% above the current stock price, based on an analysis that prices for 3nm (nanometer; 1nm is one billionth of a meter) and 5nm semiconductors will increase by single-digit percentages. Citigroup and Morgan Stanley raised their target prices for TSMC by 12% and 17%, respectively. JP Morgan Chase expects TSMC to revise its sales forecast upward this year and projects that by 2028, 35% of TSMC's total revenue will come from AI.

Bruce Lu, a Goldman Sachs analyst, stated, "As positive sentiment toward AI spreads, the risk-reward profile for TSMC looks much more attractive," adding, "With AI continuing to expand, TSMC will be one of the key beneficiaries."