Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) saw its stock price rise significantly on January 6, 2025, closing at $220.01, a 5.46% increase from the previous close of $208.61. The stock opened at $218.77 and reached an intraday high of $222.20, driven by robust trading volume at 24093982 shares, which is 179.56% of the average. The surge was primarily fueled by strong demand for AI semiconductor chips, as highlighted by Foxconn's impressive 15% sales growth in Q4 2024, which underscored the booming AI sector. This positive sentiment was further bolstered by Microsoft's announcement of an $80 billion investment in AI-enabled datacenters, positioning TSMC favorably in the AI semiconductor space.
Analysts remain optimistic about TSMC's growth prospects, with Goldman Sachs raising its price target to $254, citing strong AI demand and advanced node growth. The company's strategic expansions, including new manufacturing capabilities in Japan and the U.S., are expected to support its growth trajectory. Despite potential geopolitical risks, TSMC's proactive steps in enhancing its manufacturing prowess and forming strategic alliances underscore its resilience and adaptability in the semiconductor industry.