Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) saw its stock price rise significantly on December 23, 2024, closing at $207.36, a 5.15% increase from the previous close of $197.21. The stock opened at $201.00 and reached a high of $208.05, with trading volume surpassing the average at 14,537,545 shares. The surge was driven by a combination of positive market sentiment and strategic developments in the semiconductor sector. The U.S. semiconductor market's strong performance, led by companies like AMD and Broadcom, positively influenced TSMC's stock. Additionally, the Taiwanese market's rebound, with the Taiex index rising sharply, was largely attributed to TSMC's gains.
Further boosting TSMC's stock was the U.S. government's decision to blacklist Chinese company Sophgo, linked to a TSMC-made chip in a Huawei AI processor. This move highlights TSMC's strategic importance in the global semiconductor supply chain and has increased investor interest in its role in advanced chip production for AI-driven technologies. The U.S. probe into China's semiconductor practices also contributed to the positive sentiment, positioning TSMC as a favorable investment amid geopolitical tensions.