TSMC has crossed the $1 trillion capitalization threshold for the first time in history

Shares of the semiconductor manufacturer are showing strong growth, fueled by investor optimism and higher target prices by analysts at Morgan Stanley and JPMorgan. 

During trading on Monday, TSMC shares soared by 4.8%, bringing the company's capitalization to a historic high of $1 trillion. By the end of the day, the growth decreased slightly, and the shares closed at $186.63, which is 0.18% higher than Friday's closing price. The company's capitalization at the end of the day was $962 billion. 

Since the beginning of the year, TSMC shares have grown by more than 80%, surpassing Berkshire Hathaway in value and ranking eighth in the world among public companies.

According to Morningstar analyst Felix Lee, bringing TSMC's ADR estimate closer to $1 trillion is a significant success, but the potential for growth is still huge, given the technological advances expected in the coming decades.

The increase in quotations on Monday was caused by an increase in the target price of TSMC shares by Morgan Stanley analysts by 9%. The investment bank expects the chipmaker to increase its estimate of annual sales in a quarterly report next week. Morgan Stanley also noted that TSMC is raising prices for processors due to high demand and capacity utilization. 

Analysts also believe that TSMC's deficit marketing strategy is working. According to them, TSMC signals that supplies from advanced foundries may be limited in 2025, and customers may not receive sufficient capacity allocation.