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TSMC Shares Touch Record High, Eying Best Year Since 1999 on AI

(Bloomberg) -- Taiwan Semiconductor Manufacturing Co. shares touched a record high, as the world’s largest contract chipmaker is poised to cap its best annual stock performance in 25 years.Most Read from BloombergHo Chi Minh City Opens First Metro Line After Years of DelayThe Architects Who Built MiamiReviving a Little-Known Modernist Landmark in BuffaloNew York’s Congestion Pricing Plan Still Faces Legal HurdlesNew York City’s Historic Preservation Movement Is Having a Midlife CrisisThe stock c Read More...

(Bloomberg) — Taiwan Semiconductor Manufacturing Co. shares touched a record high, as the world’s largest contract chipmaker is poised to cap its best annual stock performance in 25 years.

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The stock climbed as much as 1.4% in Taipei on Tuesday, briefly surpassing its November 8 peak, after gains in US chip stocks including key customer Nvidia Corp. overnight. TSMC shares are now up 84% this year amid continued investor enthusiasm for artificial intelligence trades.

“For us, TSMC remains the best way to play the AI theme without having to pick a winner or a technology, at a reasonable valuation,” said Kevin Net, head of Asian equities at Financiere de L Echiquier. The next catalyst to watch will be Nvidia’s presentation at CES 2025 next month as well as TSMC’s upcoming results and guidance, he added.

With a client list that also includes Apple Inc. and Advanced Micro Devices Inc., TSMC has been a major beneficiary of the boom in AI spending. The company is expected to report sales growth of 36% for the December quarter, with a gross profit margin at 58.3%, the highest since 2022.

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