Positive Indicators Drive Taiwan Semiconductor Stock Surge
Why Shares in Taiwan Semiconductor Surged Again This Week
The semiconductor industry has received a bunch of good news lately. It's been a super year for investors in Taiwan Semiconductor Manufacturing (NYSE: TSM). At the time of writing, the stock is up 43% this year and increased by 11.4% in the week ending Friday, according to data provided by S&P Global Market Intelligence.
This week's move comes amid more positive news that encouraged investors to believe the semiconductor industry is set for an upswing in 2024, driven by demand for high-performance computing for artificial intelligence (AI) applications.
Taiwan Semiconductor's sales data
he company publishes monthly sales data, and the latest release for February shows that its sales were up 11.3% from February of last year. In addition, its January to February sales are up 9.4% compared to the same period of 2023.
It's a positive development that helps confirm a recovery in the industry. Industry data also backed it up. For example, earlier in the week, the Semiconductor Industry Association, using data compiled by the World Semiconductor Trade Statistics (WSTS) organization, announced that global semiconductor industry sales rose 15.2% in January compared to January 2023.
- Moreover, the Semiconductor Equipment Association of Japan reported 5.2% year-over-year growth in Japanese equipment billings in January, the first month after seven months of consecutive year-over-year declines.
What's next for Taiwan Semiconductor? Everything points to an ongoing recovery in the semiconductor industry, as AI applications more than offset relatively slow smartphone demand. Meanwhile, the CHIPS Act continues to support investment in the U.S. by the likes of Intel and Taiwan Semiconductor. The company is on track to hit its low-to-mid-20% revenue growth target in 2024.
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This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.