Taiwan Semiconductor Manufacturing Company saw its American depositary receipts climb 5.5% to $348.85 on Friday, mirroring a broad semiconductor sector advance fueled by renewed confidence in artificial intelligence infrastructure investment.
The Philadelphia Semiconductor Index rose 5.7% during the session, with heavyweight chipmakers leading gains. "While this trade has exhibited volatility, underlying demand for AI products appears genuine," noted Ross Mayfield, investment strategy analyst at Baird.
TSMC's Taipei-listed shares (2330.TW) closed more modestly higher, gaining 0.85% to NT$1,780. The mixed performance reflected regional divergence, as some Asian technology stocks faced pressure while U.S. counterparts rallied.
The chipmaker's recent financial performance has been robust. Fourth-quarter revenue increased 20.5% year-over-year, with net income surging 35%. Management cited "strong demand" for advanced manufacturing technologies.
Attention now turns to TSMC's upcoming monthly sales disclosure. The company will report January revenue figures on Tuesday, February 10, at 1:30 p.m. Taipei time.
These interim updates provide investors with a timely gauge of order trends between quarterly earnings reports. The data will be scrutinized for signals about the pace of AI-related demand following a week of significant market swings.
Market participants recognize the dual-edged nature of the current rally. Should enthusiasm for cloud computing investment moderate, or if valuations are perceived as stretched, semiconductor stocks could rapidly relinquish recent gains.
When trading resumes Monday, TSMC's substantial Friday advance will set the tone. The Tuesday sales release represents the next critical catalyst likely to influence sentiment toward TSMC and related semiconductor equities early in the week.
