Due to a spike in semiconductor stocks during the worldwide artificial intelligence (AI) boom, Taiwan’s stock market has surpassed the UK’s. Taiwan’s equity market is now the seventh largest in the world, with a total market value of about £3.05 trillion, surpassing London’s £3.02 trillion.
TSMC, the top contract chipmaker in the world with a valuation of almost £1.3 trillion, is a major contributor to this expansion. Strong demand from AI-focused customers like Nvidia and Apple helped the corporation record a 58% increase in first-quarter profits to £13.3 billion, with revenues growing over 30%.
Taiwan’s market boom is attributed by analysts to the ongoing need for chips that power AI technology worldwide. On the other hand, rising interest rates and worries about inflation have burdened the UK market.
Despite the bright prognosis, rising energy costs connected to geopolitical concerns in the Middle East could cause hurdles for the energy-intensive semiconductor industry.
Source – This is Money
