ASML shares surged to a new all-time high, pushing the Dutch chipmaking equipment manufacturer's market capitalisation past the $500 billion milestone and cementing its position as Europe's most valuable company. The remarkable surge was fuelled by Taiwan Semiconductor Manufacturing Corp's (TSMC) blockbuster quarterly results, which sparked a broad rally across European semiconductor stocks.

Record-Breaking Market Performance

ASML's shares demonstrated exceptional performance during the trading session, with key metrics highlighting the company's market strength:

The surge occurred as of 0858 GMT, with the company's market value calculated at the prevailing exchange rate of $1 = 0.8595 euros.

TSMC Results Drive Semiconductor Rally

The catalyst for ASML's remarkable performance came from TSMC's exceptional quarterly results, which demonstrated the continued strength of the semiconductor industry. TSMC, the world's largest computer chip maker, reported a 35% surge in net profit for the October-December quarter, reaching 506 billion New Taiwan dollars.

TSMC's strong results, driven by artificial intelligence boom and robust demand for advanced semiconductor manufacturing, created positive sentiment across the entire semiconductor ecosystem.

European Semiconductor Sector Momentum

The positive impact extended beyond ASML, creating a broad rally across European semiconductor stocks. This sector-wide momentum reflects investor confidence in the semiconductor industry's growth prospects, particularly in advanced manufacturing equipment and AI-related chip production.

ASML's position as a critical supplier of advanced lithography equipment to major chipmakers like TSMC makes it a key beneficiary of the ongoing semiconductor expansion. The company's technology is essential for producing the most advanced chips, positioning it strategically within the AI-driven semiconductor boom.

Market Leadership and Future Positioning

With its market capitalisation now exceeding $500 billion, ASML has solidified its status as Europe's most valuable company. The achievement underscores the strategic importance of semiconductor equipment manufacturing in the global technology ecosystem and reflects strong investor confidence in the company's long-term growth prospects amid continued AI advancement and semiconductor industry expansion.

Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest chipmaker, has delivered impressive fourth-quarter revenue performance that exceeds market forecasts, according to monthly data released by the company. The strong results reflect robust demand driven by artificial intelligence applications and strategic client behavior ahead of regulatory changes.

Q4 Revenue Performance Exceeds Expectations

TSMC's revenue performance for the October-December period demonstrates significant growth momentum across key metrics:

The quarterly revenue of T$1,046.08 billion ($33.04 billion) significantly outperformed the LSEG SmartEstimate of T$1,035.913 billion ($32.72 billion) based on 20 analyst projections. The results align with TSMC's October guidance range of $32.2 billion to $33.4 billion provided during the company's last earnings call.

AI Demand and Market Dynamics Drive Growth

TSMC's strong performance stems from multiple favorable market conditions that have enhanced demand for semiconductor manufacturing services. The company has emerged as a major beneficiary of advances in artificial intelligence technology, which has created substantial demand for specialized chips required for AI applications.

Additionally, TSMC benefited from rush orders as clients strategically stockpiled semiconductor inventory before US tariffs took effect. This pre-tariff stockpiling behavior contributed to the revenue surge beyond typical seasonal patterns. The AI-driven demand has more than offset the declining pandemic-era demand for chips used in consumer electronics such as tablets and other devices.

Market Performance and Analyst Outlook

TSMC's strong operational performance has translated into impressive market returns and positive analyst sentiment:

Multiple brokerages, including JPMorgan Chase, have raised their price targets on TSMC since the beginning of the year. These upgrades reflect expectations of continued strong revenue growth and improving profitability metrics driven by AI-related demand.

Upcoming Earnings and Industry Context

TSMC is scheduled to report comprehensive fourth-quarter earnings on January 15, 2025. The earnings release will include detailed financial metrics, an updated outlook for the current quarter, and full-year guidance. The company will also provide its capital expenditure forecast for 2026, offering insights into long-term investment plans.

TSMC serves major technology companies including Nvidia and Apple, positioning the company at the center of global semiconductor supply chains. The broader semiconductor manufacturing sector has shown strength, with Taiwan's Foxconn, the world's largest contract electronics maker and Nvidia's biggest server manufacturer, reporting fourth-quarter sales of T$2.6028 trillion ($82.20 billion).

Summary

TSMC's fourth-quarter revenue performance demonstrates the company's ability to capitalize on emerging technology trends while navigating complex global trade dynamics. The 20.45% year-over-year growth, combined with performance above analyst expectations, positions TSMC favorably as the semiconductor industry continues evolving with artificial intelligence applications driving demand patterns.