Taiwan Semiconductor Manufacturing Co.'s (TSMC) American depositary receipts (ADRs) soared to a historic high. This surge pushed the company's market capitalization to $1.657 trillion, making TSMC the world's sixth-largest company.
The new valuation surpasses tech giants including Meta Platforms and Broadcom. Within the sector, TSMC ranks as the second-largest semiconductor firm, trailing only Nvidia.
The record valuation stems primarily from two factors: the sustained boom in artificial intelligence (AI) and the company's dominance in advanced manufacturing processes. TSMC specifically leverages its proprietary chip-on-wafer-on-substrate (CoWoS) packaging technology.
Following these developments, investment advisory firm Aletheia Capital raised its price targets. The firm adjusted targets for both TSMC's Taipei-listed shares and its ADRs.