On Tuesday, Taiwan-listed TSMC shares briefly rose around 10%, helping it reach a market valuation of $ 413 billion. That made it the 10th largest company in the world by that metric, behind Warren Buffet’s. Berkshire Hathaway (BRKA) and ahead of Walmart (WMT) and Nestle (NSRGF), according to data provider Refinitiv.
Its shares fell back a bit throughout the day, eventually settling at 2.5%. But that still gives TSMC a market value of $ 374 billion, enough to make it the 12th most valuable company in the world. (Intel (INTC) it occupies several points below TSMC, although It was the world’s leading semiconductor supplier by sales last year, according to IC Insights. TSMC ranked third).
The rise in TSMC stocks is another sign of how well the major tech companies are resisting the coronavirus pandemic. Its shares have increased more than 30% this year, making it one of the best performing technology stocks in the world. Amazon (AMZN) and Tencent (TCEHY), which shot up 65% and 44%, respectively.
And demand for chips in particular has been strong this year as millions of people around the world continue to work, play and watch movies from home, according to analysts.
That also makes Intel’s struggles even more important. The news last week about Intel’s product delay could mean a “significant shift in technology leadership” from Intel to TSMC, analysts at Citi wrote in a report last week.
They added that Intel is likely to outsource some of the chip manufacturing to TSMC as well, which could give the latter company another boost. Microprocessors are widely used in personal computers.
Other major chipmakers are also on the rise. Samsung electronics (SSNLF) – the second largest semiconductor supplier by sales – It jumped 5% on Tuesday, after Monday’s 3% increase.
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