TSMC Reclaims $2 Trillion Market Cap as AI Demand Lifts Shares 7.6%
Updated
Updated · Yahoo Finance · Aug 3
TSMC Reclaims $2 Trillion Market Cap as AI Demand Lifts Shares 7.6%
1 articles · Updated · Yahoo Finance · Aug 3
Summary
$2.1 trillion was TSMC's market value at Friday's close after a 7.6% jump on July 30 pushed the chip foundry back above the $2 trillion threshold.
Strong AI and leading-edge chip demand drove the rebound, with second-quarter revenue up 34% year over year to $40.2 billion and net income rising 77% to a record.
Advanced nodes remained the engine: 7-nanometer and smaller chips generated 77% of wafer revenue, while 3-nanometer and 5-nanometer processes contributed 30% and 33%, respectively.
TSMC said its 2-nanometer process is still early at 3% of wafer revenue, but expects a steep ramp in the third quarter to extend growth.
Despite the milestone valuation, the stock still trades at about 20 times forward earnings, suggesting investors are not paying an extreme premium for the AI-driven expansion.