A year ago, Nvidia stock was worth around $50. At the time of writing, the American company’s stock is worth $140.11. The sharp rise in Nvidia’s stock value and market capitalization is not attributed to graphics cards for video games, but to the race for artificial intelligence. Indeed, to operate their most sophisticated AI models, companies like Google, Meta or OpenAI need chips dedicated to artificial intelligence. And currently, Nvidia is the undisputed leader in this market. As a result, thanks to this race for artificial intelligence, which is pushing tech players to spend billions of dollars, Nvidia is today one of the three most valuable companies in the world.
However, Nvidia is not the only company to benefit from this race for artificial intelligence. In its wake, we see other semiconductor players progressing. In a previous article, for example, we mentioned the progress of the company Broadcom, also specialized in semiconductors, whose valuation exceeds 1,000 billion dollars. This is also the case for TSMC, the Taiwanese company specializing in electronic chips. Indeed, if TSMC is best known for being the manufacturer of iPhone processors (and a large part of Android devices), it is also a key player in the production of chips for AI.
Exceptional results in 2024
As reported by CNBC, TSMC has just published its results for the last quarter. During this three-month period, the company generated the equivalent of $26.3 billion, an increase of 38.3% year-over-year. CNBC also indicates that, during the year 2024, TSMC generated its highest annual revenue since going public in 1994. The American media also indicates that the Taiwanese company’s stock is up 88% over the past 12 months.
Furthermore, like TSMC, Foxconn would also have been a hit in the last quarter. As a reminder, this other Taiwanese multinational assembles iPhones for Apple. However, it also assembles servers designed for AI development.
- The company TSMC, specializing in chips, announces a sharp increase in its revenues in the last quarter of 2024
- Like Nvidia, this chip specialist is benefiting from the race for artificial intelligence, which is pushing major tech players to spend billions of dollars
- TSMC had record revenue in 2024 and its stock soared 88% in 12 months, according to CNBC
