TSMC reached a record high in its second-quarter revenue, driven by strong demand for AI applications. The world’s largest contract chipmaker, with major clients like Nvidia and Apple, topped a trillion-dollar market value, solidifying its status as Asia’s most valuable company.

Foreign investors have significantly contributed to Taiwan’s stock market, dominated by TSMC, investing $4.8 billion this year.

TSMC shares surged nearly 80% this year, vastly outperforming Taiwan’s benchmark index, which rose 35%. On Thursday, TSMC’s shares in Taipei increased by more than 2%, achieving a record T$1,080 and a market value of T$28 trillion ($861 billion).

Additionally, TSMC’s ADRs on the NYSE hit a record $192.79, temporarily boosting the company’s market value to $1 trillion.

The AI boom has fueled gains for chipmakers globally, with TSMC’s success lifting the Philadelphia semiconductor index by 2.4%.

Portfolio manager Daniel Tan predicts further appreciation of TSMC’s value by 2025 due to growing AI demand and tight supply in the industry. TSMC will report its full second-quarter earnings on July 18.