TSMC hits new all-time high: Why has the TSMC stock price risen 5% this morning?

on Jun 6, 2024
  • The Taiwan Semiconductor Company (TSMC) has hit a new all-time high stock price today.
  • The company's share price surged over 5% to hit TWD898.
  • But what caused the stock price surge? We delve into the why.

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The stock price for chip making giant Taiwan Semiconductor Manufacturing Company (TSMC) reached an all-time new high this morning, during the Asian trading session.

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The company’s share price hit TWD898 (New Taiwan Dollars), roughly $27.83 in US dollars, just hours ago in overnight trading for US stocks.

This was a rise of roughly 5% during Asian trading off of the company’s closing price of yesterday, and also after TSMC’s U.S.-listed stock surged close to 7% overnight last night.

This new all-time high improves upon the previous record hit on February 15th this year, when TSMC shares reached a high of TWD709 (roughly $21.97).

The TSMC stock price has gone up by more than 50% this year so far, rising a speedy 11.75% in the past month alone – close to 7% of which was in just the past week.

Why has the TSMC stock hit an all-time-high this morning?

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The main reason for TSMC’s sudden ATH seems to be a net effect of the news, which broke last night, that Nvidia has had its own moment of glory.

Silicon Valley chipmaker Nvidia has officially hit a market capitalization of $3 trillion – a figure first historically hit by Apple Inc, which Nvidia has now overtaken as the world’s second most valuable company, in terms of market cap, after Microsoft.

Excitement has been mounting around the Magnificent 7 stock in the lead-up to June 10th, when Nvidia will undergo a stock split.

The Nvidia effect

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First announced two weeks ago on May 22nd, the Nvidia stock price will undergo what is known as a ’10-for-1’forward split, in which the share price will be reduced to a tenth of its price before the split, with the net effect of shareholders owning 10 times more shares than they did previously.

Typically, stock prices react positively to a 10-for-1 split, explaining why Nvidia hit its own new all-time high of $1,224.50 yesterday.

This, of course, comes off the back of continuing unbridled demand and bullishness for all things AI in 2024.

The sentiment seems to have reached a new fever pitch this week, at the Computex 2024 tech convention in Taipei, Taiwan, which featured appearances from bigwigs at TSMC, Nvidia and more, and also boasted a talk by Nvidia CEO Jensen Huang himself on June 4th.

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