![AI boom reshapes Wall Street as TSMC joins trillion-dollar club](https://www.americanmarconiwirelessnews.com/media/shared/articles/g0/e3/8f/AI-boom-reshapes-Wall-Street-as-TSM-140846.jpg)
-
Pacific leaders confront 'polycrisis' of rising seas and climbing tensions
-
UK Labour's move to tax private schools stirs passions
-
Taiwan leader urges unity on Chinese attack anniversary
-
Takeaways from the Democratic National Convention
-
Can Ligue 1 arrest decline after summer of crisis?
-
Harris accepts Democratic nomination with pledge of 'new way forward'
-
Alibaba to upgrade Hong Kong listing amid profit drop
-
Asian stocks slip with Wall St ahead of Powell, yen rises
-
Bayern plot to recapture Bundesliga with Leverkusen in crosshairs
-
Harris accepts Democratic nomination with vow to unite America
-
Conte and Napoli reeling after horror Serie A start
-
Indian desert school's unique design offers respite from heat
-
China's 'throwing eggs' card game wins fans and official censure
-
Volcano erupts in Iceland, sixth since December
-
Paris Paralympics to showcase best of disability sport
-
Bosnia volleyball team sets sights on Paralympic glory
-
Mbappe ready for Bernabeu bow as Ancelotti seeks Madrid balance
-
Australia tackles poor Great Barrier Reef water quality
-
Indian PM Modi to advocate 'peace' on historic Ukraine visit
-
NATO airbase in Germany raises security level over 'potential threat'
-
US Fed chair expected to signal support for rate cuts
-
Venezuela top court confirms Maduro's disputed reelection
-
Once 'canceled,' The Chicks take center stage at Democratic Convention
-
Harris vows to be 'president for all Americans' in convention climax
-
Influencers get VIP treatment at US Democratic National Convention
-
French prosecutors request trial in Depardieu rape probe
-
Influencer Andrew Tate placed under house arrest in Romania in new probe
-
Canada government steps in to end crippling freight rail shutdown
-
Harris poised for joyful star turn at Democratic convention
-
'I love him': Flag-waving Russians rally for pro-Putin pop star
-
Venezuela apex court confirms Maduro's disputed reelection
-
Chelsea give Maresca first win in Conference League
-
Fearing Trump, LGBTQ Americans out in force for vote
-
Apple to let iPhone users in Europe delete its App Store
-
Tebogo tops 200m, Wanyonyi on fire in mixed night for Olympic champs
-
Israel in Gaza talks in Egypt as fighting rages
-
Combining climate measures key to slashing emissions: study
-
Harris to formally accept Democratic nomination
-
England's Hull out in front after first round of Women's British Open
-
Ingebrigtsen claims revenge on Hocker in Lausanne 1500m
-
World's second largest diamond found in Botswana
-
US Open draw raises prospect of Sinner-Alcaraz rematch
-
Smith edges England ahead in first Test against Sri Lanka
-
Venezuela high court confirms Maduro's reelection after fraud claims
-
'Crazy love': Afghans overjoyed to watch star cricketers on home turf
-
Putin accuses Ukraine of trying to attack Kursk nuclear plant
-
Nestle CEO Schneider to step down after eight years at helm
-
Pakistan top court amends religious freedom ruling after protests
-
Stocks sputter ahead of Fed chief's speech
-
Nepal lifts ban on video-sharing platform TikTok
![AI boom reshapes Wall Street as TSMC joins trillion-dollar club](https://www.americanmarconiwirelessnews.com/media/shared/articles/g0/e3/8f/AI-boom-reshapes-Wall-Street-as-TSM-140846.jpg)
AI boom reshapes Wall Street as TSMC joins trillion-dollar club
The entry of Taiwanese chip giant TSMC into the elite club of the world's most valuable companies is further proof that the generative AI revolution is shaking up Wall Street.
TSMC, listed in both Taiwan and New York, briefly broke the one trillion dollar market capitalization barrier on Monday, putting it ahead of Tesla as the seventh most valuable technology giant on the stock market.
Also on Monday, Alphabet, Apple and Meta all hit all-time highs.
The top ten of the world's most valuable companies is headed by Microsoft and Apple, closely followed by AI chip designer Nvidia.
Their global stock market valuations exceed three trillion dollars on Wall Street.
Alphabet and Amazon, which recently topped the two trillion dollar mark, follow in an ever-changing ranking.
The Saudi oil giant Aramco slipped into sixth place followed by Meta, TSMC and Tesla.
"The semiconductor industry is now the leading sector in the S&P 500," noted CFRA analyst Angelo Zino recently.
"It's taken over the last 15 or 18 months. That shows you how much the world has changed."
The explosion in worldwide demand for chips, boosted by the rise of computing-intensive generative AI, promises sustained expansion for the industry.
Chip-makers are not only attracting investors but also a host of government subsidies.
The Biden administration, for example, has granted tens of billions of dollars in financial support over several years to help build chip factories in the United States.
Worldwide sales of semiconductors, which include integrated circuits, microprocessors and memory chips, are expected to reach $611.2 billion in 2024, a record for the industry, according to the Semiconductor Industry Association.
Sales are expected to jump by 16 percent in 2024 and a further 12.5 percent in 2025, according to the trade organization.
Nvidia, the designer of graphics processing units (GPUs) , is the frontrunner of the craze, and has triumphed on Wall Street in recent months.
Nvidia’s GPU’s are a crucial component to building generative AI and since the November 2022 launch of ChatGPT, its market capitalization has increased eightfold.
In mid-June, the Santa Clara, California-based group even briefly became the world’s most valuable publicly traded company, ahead of Microsoft at $3.3 trillion.
"Nvidia's GPU chips are the new gold or oil of the technology sector," said analysts at Wedbush Securities.
For them, Nvidia, Apple and Microsoft are now engaged in "the race for the four trillion dollar billion market valuation."
TSMC, with most of its factories based in Taiwan, is well placed to also reap the rewards.
While Nvidia, which only designs chips but does not manufacture them, remains discreet about its supply chain, it is widely believed that the bulk of its products are manufactured by TSMC.
The Taiwanese giant, which controls more than half of the world's semiconductor demand, earlier this year posted first-quarter sales of $18.87 billion, up 13 percent year-on-year while net income climbed 9 percent to $6.97 billion.
As for Nvidia, its quarterly profit reached $14.9 billion, a seven-fold increase over the previous year, on sales of $26 billion.
A.Mahlangu--AMWN