TSMC stock rises 75% in 2024 driven by AI chip demand

Taiwan Semiconductor Manufacturing Company (TSMC) has seen its stock rise about 75% this year, driven by strong demand for AI chips. TSMC holds over 60% of the semiconductor contract manufacturing market, benefiting from its relationships with major clients like Apple and Nvidia. Despite its strong position, TSMC faces risks, including potential declines in AI infrastructure spending and geopolitical tensions due to its operations in Taiwan. High capacity utilization is crucial for profitability, and any slowdown could impact revenue and margins. Overall, TSMC is well-positioned for growth, with analysts noting its attractive valuation and ongoing demand for semiconductor technology. The company plans to increase prices for AI semiconductors in 2025, further supporting its financial outlook.