1 Favorable Trend That Explains the 68% Increase in Taiwan Semiconductor Manufacturing's Share Price This Year
No other company is as synonymous with semiconductors as the appropriately named Taiwan Semiconductor Manufacturing Company (NYSE: TSM), the world's leading semiconductor foundry. TSMC is the pioneer of the foundry model, manufacturing the chips that other companies design on their behalf.
Providing the infrastructure to produce a large fraction of the world's semiconductors has long put TSMC in a lucrative position, and recent artificial intelligence (AI) developments have added to its momentum. That's partly why the stock was up by an impressive 68% so far this year as of Aug. 28.
AI applications like OpenAI's ChatGPT, Alphabet's Gemini, and other generative AI tools have taken the world by storm. Their popularity has sparked an AI gold rush that has companies from virtually every sector scrambling to see how they can use it to enhance their businesses.
Source Fool.com