Taiwan Semiconductor Manufacturing Co. (TSMC) is experiencing a surge in interest following recent developments that could significantly impact its business. On December 18, 2024, TSMC's chair, C.C. Wei, confirmed a meeting with Tesla CEO Elon Musk to discuss the supply of AI chips for Tesla's humanoid robots. This collaboration is expected to leverage TSMC's advanced 5nm process and InFO-SoW technology, potentially positioning Tesla's robots to capture a substantial market share. The meeting underscores TSMC's pivotal role in the AI chip supply chain, particularly as Tesla plans to ramp up production of its Optimus Gen 2 robots.
Additionally, the semiconductor industry is abuzz with news of Broadcom's entry into the $1 trillion market cap club, highlighting the growing demand for custom AI chips. TSMC, as a key supplier in the semiconductor ecosystem, stands to benefit from this trend. The increasing reliance on custom chips by tech giants like Amazon and Google, who are developing their own AI solutions, further emphasizes TSMC's strategic importance. These developments are likely contributing to the positive sentiment around TSMC, as the company continues to play a crucial role in the evolving AI landscape.
The Direxion Daily TSM Bull 2X Shares (TSMX) is up 3.43% in pre-market hours on Wednesday, December 18, reaching $31.99 as of 7:30 AM ET.