TSMC's ADR Share Price Surges, Market Capitalization Tops 1 Trillion US Dollars

TapTechNews July 8th news, the share price of TSMC's American Depositary Receipt (ADR) once rose by 4.8%, and its market capitalization exceeded 1 trillion US dollars for the first time (TapTechNews note: currently about 7.29 trillion RMB), and then the increase fell back to 3.1%. There are currently 7 listed companies in the US stock market with a market capitalization of over 1 trillion US dollars, and the first 6 are Microsoft, Apple, NVIDIA, Google, Amazon, and Meta.

This wave of rally is due to the fact that many brokerages such as Morgan Stanley have raised TSMC's target price and the optimistic expectations for the upcoming earnings report.

Since the beginning of this year, TSMC's share price has increased by more than 80% cumulatively. As the exclusive supplier of the most important chips for technology giants such as Apple and NVIDIA, TSMC is deeply favored by global artificial intelligence investors. With the rise of the artificial intelligence wave, the share prices of these companies with a market capitalization of up to 3 trillion US dollars have risen, and in contrast, TSMC, as an indispensable chip manufacturer, appears to be more valuable. Many brokerages on Wall Street have raised TSMC's target price, and they are optimistic about the surge in artificial intelligence-related demand and the potential chip price increase in 2025, which will further enhance TSMC's profitability.

The Monday's rally originated from Morgan Stanley raising TSMC's target price by about 9%. The brokerage expects that TSMC will raise its full-year sales forecast in the earnings report to be released next week. They also believe that due to TSMC's strong bargaining power, the price of its wafer foundry will increase.