Chip major Taiwan Semiconductor Mfg. Co. (NYSE:TSM) ticked higher in pre-market trading after its Taiwan-listed shares on the Taipei Stock Exchange (TPE) rose to their highest level ever, closing at NT$725 on Monday. According to a Bloomberg report, this surge in TSMC’s shares increased its market capitalization to $597 billion, bringing the firm closer to reclaiming its spot among the world’s 10 most valuable companies.
Year-to-date, TSM stock has soared by more than 30%, fuelled by optimism about artificial intelligence (AI).
AAPL Could Be Designing Chips Based on TSM’s Fabrication Process
Meanwhile, there are strong rumors that tech giant Apple (NASDAQ:AAPL) could be designing its chips based on TSM’s 2-nanometer (nm) fabrication process. A leaked slide, originating from a Korean website, gamma0burst, which was shared on Twitter by user tech_reve, mentioned Apple employees’ work on past and present projects.
This slide mentioned “TS5nm, TS3nm, working on TS2nm” – terms that are believed to be references to TSM’s different chip fabrication processes. Rumors have long suggested that TSMC is working on more advanced 1.4-nanometer chips, which are expected to come out in 2027. Apple is anticipated to be among the first recipients of chips using the 2nm process, offering significant speed and power improvements. TSMC is investing in new facilities for 2nm production, with Apple being its primary client.
Is TSM a Buy, Sell, or Hold?
Analysts remain bullish about TSM stock with a Strong Buy consensus rating based on five Buys. The average TSM price target of $141.60 implies an upside potential of 5.8% at current levels.
