TSMC Shares Rally for a Second Day
By Yifan Wang
Shares of Taiwan Semiconductor Manufacturing Co. rose for a second day, buoyed by investor hopes that fast-developing artificial-intelligence technologies will drive a boom in global chip demand.
The stock rose as much as 4.6% Friday and was recently 3.9% higher at 564.00 New Taiwan dollars (US$18.29). The gains added to TSMC's 3.4% advance Thursday.
TSMC is the most valuable stock in Taiwan's benchmark Taiex index, which rose 1.3% Friday.
The Taiwan semiconductor maker's rally came after chip giant Nvidia, one of TSMC's clients, guided for a more than 64% revenue jump for the quarter ending July. Analysts at Wedbush Securities called the projection "draw dropping" and "robust."
"There is not one better indicator around underlying AI demand going on," they said.
Such an expected demand surge could imply better growth for companies across the semiconductor supply chain, including TSMC, analysts said.
Nvidia's upbeat guidance "builds our confidence that the upturn in the overall chip cycle is imminent or may even have begun," Nomura analysts said in a note.
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(END) Dow Jones Newswires
May 25, 2023 23:42 ET (03:42 GMT)Copyright (c) 2023 Dow Jones & Company, Inc.