(VOR News) – The market value of TSMC, which is the top contract producer of semiconductors in the world, briefly surpassed one trillion dollars earlier this week.
TSMC is the world’s leading semiconductor manufacturer.
This is because the demand for advanced processors, particularly those related to artificial intelligence, is reaching new heights. This is the reason why this is happening.
When TSMC announces its quarterly results later this month, it has the opportunity to further consolidate its membership in the club of firms with a market worth of one trillion dollars. This might be considered a significant achievement for the company.
TSMC is responsible for the production of central processing units (CPUs) for all of the world’s leading chip designers, including Apple, AMD, Broadcom, Intel, Nvidia, and Qualcomm.
Apple is one of the companies that TSMC works with. Because of the enormous demand for these chips.
Many situations do not allow TSMC to compete with its competitors.
This is because demand is so high. Processing technologies developed by Intel Foundry and Samsung Foundry are unable to achieve transistor density, performance, and power efficiency that are equal to those seen in chips created by TSMC.
TSMC is the industry leader in semiconductor manufacturing.
In light of the fact that the company is getting ready to announce its financial results for the second quarter of 2024 later this month, there are those who believe that TSMC’s stock (and market value) will continue to increase.
The robust demand for artificial intelligence processors, which has been indirectly supported by strong guidance issued by Nvidia and some other AI enterprises, is anticipated to be validated by sales at the major foundry, which is believed to be the case.
According to projections, this market would grow by a factor of 250 percent this year. In addition, the revenue that TSMC generates during the second half of the year is often higher than the sales that it generates during the first half of the year.
Specifically, this is due to the fact that companies like Apple, AMD, and Intel start increasing manufacturing of their most recent processors beginning in the second quarter in order to satisfy customer demand.
As a matter of course, the recent growth in market capitalization was a consequence of the increased demand for artificial intelligence processors, in particular those created by NVIDIA and Broadcom (which is responsible for designing them for Google).
This resulted in the market capitalization of increasing. Just one month ago, NVIDIA was the most expensive firm in the world based on market capitalization. However, Apple and Microsoft have since surpassed it in terms of market capitalization. NVIDIA is now the second most expensive corporation in the world.
According to this article, TSMC’s market cap is $948.94 billion.
Which places it as the seventh largest firm in terms of total market capitalization.
Intel, on the other hand, has a capitalization of $145.98 billion, which is somewhat peculiar when one considers the fact that Intel is a large customer of TSMC and the most prominent provider of processors for client personal computers in the entire globe.
The capitalization of Intel includes the capability to compete in terms of the manufacturing capacity of the manufacturer.
The fact that TSMC is the first Asian company to attain a market capitalization of one trillion dollars, even if it was just for a short period of time, is a particularly noteworthy achievement.
The Taiwan Semiconductor Manufacturing firm (TSMC) is the most valuable firm in Taiwan, surpassing both the Chinese high-tech behemoth Tencent ($458 billion) and the South Korean high-tech giant Samsung ($420 billion). TSMC is the most valuable corporation in Taiwan.
SOURCE | TH
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