The move followed news that Taiwan Semiconductor had secured a one-year U.S. export license, allowing it to continue importing American chipmaking equipment for its operations in China.
The U.S. Department of Commerce approved the license for Taiwan Semiconductor’s Nanjing fabrication plant, enabling U.S.-controlled tools to ship without case-by-case vendor approvals.
Also Read: Taiwan Semiconductor Plans Price Hike For Advanced Chips: Report
AI Boom Lifts Valuation To New Heights
On Friday, Taiwan Semiconductor’s ADRs jumped 5.17% to $319.61, lifting its market cap to about $1.66 trillion at the close of the first New York trading session of the year.
Taiwan Semiconductor shares listed in Taipei also hit a new peak, rising to 1,585 New Taiwanese dollars and pushing the chipmaker’s local market value to roughly 41.1 trillion New Taiwanese dollars ($1.31 trillion).
Nvidia Ties And Analyst Optimism Build
Meanwhile, Nvidia is deepening its ties to Taiwan as surging AI chip demand puts added strain on the global semiconductor supply chain that Taiwan Semiconductor dominates.
CEO Jensen Huang is expected to visit Taiwan this month, where he may formally announce plans for a new Nvidia headquarters in Taipei.
Local reports say Huang plans to meet with Taipei officials and industry partners, underscoring Taiwan’s central role in Nvidia’s AI roadmap.
The visit comes as Nvidia pushes to secure more advanced chip capacity from Taiwan Semiconductor to meet soaring demand, especially from China.
Chinese tech firms have ramped up orders for Nvidia’s H200 AI chips, reportedly exceeding current supply and prompting Nvidia to ask Taiwan Semiconductor to boost production.
Huang is also expected to meet with leaders from Taiwan’s key supply-chain players, including Taiwan Semiconductor, highlighting how critical Taiwan remains to Nvidia’s ability to scale AI hardware amid tightening global capacity.
Analyst Outlook
Ahead of Taiwan Semiconductor’s upcoming earnings conference, Aletheia Capital raised its revenue and earnings forecasts for both this year and next year.
Aletheia expects Taiwan Semiconductor’s revenue to more than double and earnings to potentially triple from 2024 through next year, driven by capacity expansion and pricing power.
TSM Price Action: Taiwan Semiconductor shares were up 3.13% at $329.60 during premarket trading on Monday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
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