On Thursday, Taiwan Semiconductor Manufacturing (TSMC) reported a solid second-quarter revenue amid a spike in AI demand, pulling up its stock price.
It increased by 3.54% to $191.05 per share on July 10, anticipating a 0.26% jump to $191.54 apiece in the after-hours trading.
The booming demand for artificial intelligence (AI) improved its Q2 profits, stabilizing its position as Asia’s most valuable company.
According to TSMC, its revenue from January through June 2024 hit $38.85 billion, a 28.00% increase from the same period in 2023.
This year, foreign investments reached $4.80 billion in Taiwan’s stock market. However, HSBC stated that Asian funds are still underweight in the country, which suggests there is room for more inflow.
Moreover, TSMC shares improved by almost 80.00% this year, significantly beating the benchmark Taiwan SE Weighted Index, equating to a 35.00% rise.
AI-focused companies and chipmakers had a successful run this year, with substantial gains in market capitalization in June. Tech giants like Nvidia, Microsoft, and Apple’s market value reached $3.00 trillion.
On Wednesday, TSMC’s robust financial data lifted the Philadelphia semiconductor index by 2.40% to a record.
Meanwhile, the Taiwan-based company will report its Q2 earnings on July 18.
Asian Tech Stocks Lifted by TSMC
Asian tech stocks rose on July 11 as the revenue figures of TSMC spiked optimism over AI-driven demand.
Chipmakers, particularly, advanced on Thursday, following the company’s gains.
Memory chip SK Hynix Inc., a firm closely tied to the AI sector, experienced an over 3.00% increase. Also, Sony Corp in Japan rose by 3.70%, while Mitsubishi Electric Corp inched up by 1.00% amid the TSMC figures.
Based on recent reports, both companies aim to invest $31.00 billion in chip development in the next five years.
On the other hand, Advantest Corp, a chip-testing equipment maker, fell slightly after reaching a four-month high earlier in the day.
