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TSMC Shares Hit Record High as AI Boom Lifts Forecast

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Taiwan Semiconductor Manufacturing Co. (TSMC) stock prediction for its shares hit a record high after surpassing quarterly earnings.

On Thursday, October 19, Taiwan Semiconductor Manufacturing Co. (TSMC) stock prediction for its shares hit a record high after surpassing quarterly earnings expectations and raising its 2024 revenue growth target.

TSMC, one of the most prominent key suppliers to giants like Nvidia and Apple, now projects a 30% sales increase for 2024, up from its earlier forecast of mid-20% growth. The chipmaker’s revision comes at a time when demand for AI hardware maintains its stronghold, driving the TSMC stock predictions even higher.  

Strong AI Demand and Revenue Growth

TSMC semiconductor stock American depositary receipts surged 9.8% in New York Stock Exchange (NYSE), the biggest jump since they began trading in the US in 1997. The company posted a 54% gain in third-quarter profit that topped analysts’ estimates, boosting shares.

Nvidia, one of TSMC’s largest customers, saw a more modest than 1% jump in its share price.

TSMC stock in Taiwan has had a notable growth which resulted in an increased demand for AI hardware, specifically chips by Nvidia that are used in the development of AI.

The chip-manufacturing company is hopeful of reaping benefits from the trend, as it is still gaining ground in most fields. “The demand is real, and I believe it’s just the beginning,” TSMC’s chief executive officer, C.C. Wei, informed investors, echoing comments from industry leaders like the chief executive officer at Nvidia.

TSMC’s Strong Expansion Plans

TSMC stock earnings 2024 outlook reflects the strategic position of the company within the global chip market.

While ASML expressed its concern regarding the slower-than-expected recovery for sectors such as automotive and mobile, the AI-related business continues to be strong in the case of TSMC.

According to technology analyst Ben Barringer of Quilter Cheviot, TSMC was “much better positioned” against rivals such as Intel and Samsung in setting the company to manage any downturn within the industry effectively.

Along with the record profit, TSMC stock prediction is contemplating international expansion by building new plants in Europe, Japan, Arizona, and Germany. The company expects AI server processors to contribute a mid-teens percentage to total sales this year, a further solidification of leadership in the AI Chip Market.

TSMC Stock Today at the Forefront of AI Development

Headed by the rapid growth in the AI-driven semiconductor market, theinvest in TSMC stock has become a key player in this global race for dominance in artificial intelligence.

With strong demand for its advanced chips and ambitious international expansion plans, TSMC is well-positioned to capitalize on the AI hardware market. As AI goes on shaping up the future of technology, so will TSMC stock prediction role in supplying the critical components powering innovation.

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