TSMC Shares Soar Amid AI Boom and U.S. Investigation

Shares of TSMC reached a record high following impressive quarterly earnings and demand for AI chips. Despite the financial success, TSMC faces a U.S. investigation regarding possible shipments to Huawei. The company assures compliance with export regulations and expects continued success in AI demand.

TSMC shares hit an all-time high on Friday after the Taiwanese chipmaker posted impressive third-quarter earnings, buoyed by strong demand for artificial intelligence (AI) technology.

The company's stock surged 4.8% to T$1,085, surpassing its previous peak and pushing TSMC's market valuation to $874 billion, the largest in Asia. Despite the financial upswing, TSMC is under investigation by the U.S. Commerce Department over potential chip sales to China's Huawei. The chipmaking giant confirmed its adherence to laws, including export controls, and committed to regulatory compliance. TSMC has halted new orders from Huawei since July 2020. The U.S. Commerce Department and Taiwan's Economy Ministry declined to comment.

TSMC, serving tech giants like Apple and Nvidia, reported a 54% profit jump and revised its annual revenue forecast upwards, projecting a healthy outlook for the next five years.

(With inputs from agencies.)