The value of shares of Taiwan Semiconductor Manufacturing Co. (TSMC) has reached an all-time high, as this contract manufacturer of chips, being the largest in the world, is ready to demonstrate the best financial performance of its activities over the past 25 years.
Last Tuesday, December 24, the securities of the mentioned company in Taipei showed an increase of 1.4%. The corresponding indicator briefly exceeded the peak recorded on November 8. Then the value of the shares erased the gain to end flat.
The upward dynamic of TSMC securities is largely related to the growth of chip stocks in the United States. In this context, special attention should be paid to the rise in the price of equities of Nvidia Corp., the main customer of the Taiwanese manufacturer of microcircuits.
Since the beginning of the current year, the value of TSMC shares has increased by 82%. The corresponding upward dynamic of the company’s securities is related to investors’ enthusiasm for the prospects of the artificial intelligence industry, which is currently under active development and scaling. AI is the most advanced technology of the current historical moment. Artificial intelligence has already demonstrated its effectiveness as a working tool and as a kind of original content generator. According to some futurological forecasts, AI also has the potential to become an independent form of consciousness capable of autonomous evolution and surpassing the human mind in terms of cognitive abilities. The realization of relevant prospects is impossible without such a basic material element as a chip. For this reason, stocks of companies that develop or manufacture microcircuits demonstrate an upward dynamic.
In addition to Nvidia, TSMC’s customers also include, among others, major technology companies such as Apple Inc. and Advanced Micro Devices (AMD) Inc. The Taiwanese manufacturer has become a beneficiary of the spending boom on artificial intelligence.
TSMC is expected to report a 36% increase in sales for the December quarter. Also, preliminary forecasts provide that the company’s gross profit margin for the mentioned period will be 58.3%. The corresponding figure is the highest in the last two years.
It is worth noting that during the period of active development of artificial intelligence, which contributes to the growth of TSMC’s financial performance, the issue of cybersecurity has become more relevant. Scammers also have access to AI, which is why their algorithms have become more sophisticated. To counteract the corresponding threat in the virtual space, personal awareness of users is important. For example, an Internet search query such as how to know if my camera is hacked will allow anyone to get information about signs of unauthorized access to the device.
