1 Favorable Trend That Explains the 68% Increase in Taiwan Semiconductor Manufacturing's Share Price This Year

Core Insights - TSMC is the world's leading semiconductor foundry and a pioneer in the foundry model, manufacturing chips designed by other companies [1][2] - The stock of TSMC has increased by 68% as of August 28, driven by the surge in artificial intelligence applications [1] - TSMC's revenue from high-performance computing (HPC) chips grew by 28% from Q1 and accounted for 52% of its total revenue of $20.8 billion in Q2, marking a significant milestone [2] Company Overview - TSMC manufactures high-end chips for major companies like Nvidia, which are essential for training and running complex AI models [2] - The company expects AI-related revenue to exceed 20% of its total revenue by 2028, indicating a strong growth trajectory [2] Industry Context - The rise of AI applications, such as OpenAI's ChatGPT and Alphabet's Gemini, has created a demand for high-performance chips, positioning TSMC favorably in the market [1][2] - The AI gold rush has prompted companies across various sectors to explore AI integration, further driving demand for TSMC's semiconductor products [1]