TSMC shares continue to rise, hitting a new all-time high for the second day in a row. The stock gained about 5% following news of a possible easing of rules for funds in Taiwan and strong earnings. The market received two signals at once—more capital may flow into the stock, and the company’s business is showing steady growth.
The situation appears systemic. This is not a one-off spike, but a combination of fundamental factors and regulatory changes.
Taiwan Is Ready to Open Access to TSMC Shares
The main external factor is a proposal to change the rules for local funds. The regulator is considering increasing the investment limit in a single company from 10% to 25% of a portfolio.
This is critical for TSMC. The company holds a significant share in the Taiwan Stock Exchange index, and any changes to the limits automatically increase the potential volume of purchases.
Funds May Increase Positions in TSMC
If the rule is adopted, funds will be able to increase their TSMC holdings by almost 2.5 times. This creates expectations of additional demand from institutional investors.
The market quickly priced in this scenario. Even the mere discussion of changes is already affecting participants’ behavior.
The Company’s Profit Is Growing Faster Than Expected
The second factor is strong earnings. TSMC’s net profit in the first quarter rose 58% to 572.48 billion Taiwan dollars.
This is the fourth consecutive quarter with record figures. For investors, this confirms that the company is maintaining its growth rate even amid global uncertainty.
Demand for Chips Remains High
TSMC continues to benefit from demand for high-performance chips. The main clients—Apple and Nvidia—provide a steady stream of orders.
The role of the artificial intelligence segment is especially notable. Chip production for AI remains one of the fastest-growing areas in the industry.
The Company Expands Its Technology Portfolio
In addition to financial results, TSMC is actively developing technology. The company has unveiled new plans for 2nm processes and below, as well as updates for future chip generations.
Development is progressing in several directions at once. This includes increasing transistor density, reducing power consumption, and working with new architectures.
Partnerships Strengthen Market Position
TSMC is expanding its collaboration with Siemens in chip design. The focus is on automation and the use of artificial intelligence in development.
This allows for faster creation of new products. For clients, this means a quicker transition to the next generation of technology.
New Process Technologies Drive Long-Term Growth
The company has also presented plans for the next generations of technology, including A13 and improved versions of 2nm processes. Production of these solutions is scheduled for the end of the decade. This is an important signal for the market. TSMC is showing that it is already laying the groundwork for future growth.
The Market Sees TSMC as a Key Player in AI
The rise in shares reflects a broader trend. TSMC is seen as the backbone of artificial intelligence infrastructure. Without its capacity, scaling computing is impossible. This makes the company one of the key beneficiaries of the technology cycle.
What’s Next?
The further dynamics of the stock will depend on two factors. The first is the final decision on rules for funds in Taiwan. The second is the continued high demand for chips from major clients. So far, both factors remain in favor of growth. This explains why the shares continue to hit new highs.
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