{"id":543641,"date":"2024-07-09T09:32:04","date_gmt":"2024-07-09T07:32:04","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=543641"},"modified":"2024-07-09T09:32:04","modified_gmt":"2024-07-09T07:32:04","slug":"major-chip-manufacturer-hits-r18-trillion-in-value","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/hardware\/543641-major-chip-manufacturer-hits-r18-trillion-in-value.html","title":{"rendered":"Major chip manufacturer hits R18 trillion in value"},"content":{"rendered":"

Taiwan Semiconductor Manufacturing briefly surpassed $1 trillion in market capitalization after Morgan Stanley joined a list of brokers boosting price targets on the chipmaker before its earnings.<\/p>\n

TSMC ADRs shares jumped as much as 4.8%, to touch the milestone just after the opening bell in New York on Monday, taking its share price increase this year to more than 80%.<\/p>\n

The Taiwanese chipmaker overtook Berkshire Hathaway earlier in June to become the world\u2019s eighth most valuable company, based on its ADRs, which trade at a considerable premium to its Taipei-traded shares.<\/p>\n

\u201cSeeing TSMC ADRs approach $1 trillion (R18 trillion) valuation is a feat, but there\u2019s much ahead with tech advancements extending at least into the 2040s,\u201d said Morningstar Inc. analyst Phelix Lee.<\/p>\n

TSMC\u2019s position as the sole supplier of Apple Inc. and Nvidia most important chips makes it a favorite play among global investors in AI.<\/p>\n

Those $3 trillion (R54 trillion) companies have seen their shares rise with the tide of artificial intelligence, making their indispensable chipmaker appear good value by comparison.<\/p>\n

Even with rising tensions in the Taiwan Strait, a flurry of Wall Street brokerages\u00a0lifted<\/a>\u00a0their price targets for TSMC, citing surging AI-related demand and potential price hikes in 2025 to elevate earnings.<\/p>\n

TSMC\u2019s ADRs have\u00a0outperformed<\/a>\u00a0its Taipei shares because they\u2019re more easily accessible to foreign investors.<\/p>\n

They are also fungible, unlike the Taiwan shares, which need special regulatory approval to be converted into the US equivalent.<\/p>\n

Analysts Boost Targets<\/h2>\n

Monday\u2019s rally comes after Morgan Stanley raised its target on the stock by about 9%, expecting the chip maker to raise its full-year sales estimate in the earnings announcement next week.<\/p>\n

The broker also sees TSMC hiking wafer prices due to its strong bargaining power.<\/p>\n

\u201cTSMC\u2019s \u2018hunger marketing\u2019 strategy seems to be working,\u201d Morgan Stanley analysts including Charlie Chan wrote in a note Sunday.<\/p>\n

\u201cOur latest supply chain checks indicate that TSMC is delivering a message that leading-edge foundry supply could be tight in 2025 and customers may not get sufficient capacity allocation without appreciating TSMC\u2019s value.\u201d<\/p>\n

\"\"<\/p>\n

\"\"<\/p>\n","protected":false},"excerpt":{"rendered":"

The Taiwanese chipmaker overtook Berkshire Hathaway earlier in June to become the world\u2019s eighth most valuable company.<\/p>\n","protected":false},"author":341034,"featured_media":430034,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[92837,15],"tags":[35793,42376,43124],"class_list":["post-543641","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ai","category-hardware","tag-artificial-intelligence-ai","tag-semiconductors","tag-taiwan-semiconductor-manufacturing-company-tsmc"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/543641"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=543641"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/543641\/revisions"}],"predecessor-version":[{"id":543649,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/543641\/revisions\/543649"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/430034"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=543641"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=543641"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=543641"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}