Taiwan Semiconductor Manufacturing stock surged to a record high on Wednesday after the chipmaker reported strong sales growth in August.
Early Wednesday, the world's leading chip foundry said its sales last month rose 3.9% in local currency from July and 33.8% from August last year.
Year to date through August, Taiwan Semiconductor's sales are up 37.1% year over year, the company said in a news release.
Taiwan Semiconductor, better known as TSMC, produces leading-edge chips for fabless semiconductor firms. Its customers include AI chip designers Nvidia, AMD and Broadcom and iPhone maker Apple.
"With signs AI/data center momentum is continuing/accelerating and suggestions that consumer demand (particularly PCs) might not be quite as weak as had been feared, we continue to see stronger results for TSMC ahead," Wedbush Securities analyst Matt Bryson said in a client note. He rates TSM stock as outperform.
On the stock market today, Taiwan Semiconductor shares rose 3.8% to close at 260.44. Earlier in the session, TSM stock hit an all-time high of 264.58.
On Tuesday, TSM stock broke out of a flat base with a buy point of 248.28, according to IBD MarketSurge charts.
Further, Taiwan Semiconductor stock is on the IBD Tech Leaders list.
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