(Bloomberg) -- Taiwan Semiconductor Manufacturing Co. gained its most in more than three years after Morgan Stanley lifted its price target on Nvidia Corp.'s chipmaker by about 9%, citing its growing AI business.
Taiwan's largest company soared 9.8% after resuming trade following the week-long Lunar New Year break, the biggest intraday climb since July 2020. The company's surge propelled Taiwan's benchmark index to a record high.
TSMC last week reported a 7.9% rise in January sales, offering the latest sign of a long-awaited recovery in global consumer electronics demand. As the market picks up, TSMC — also the main chipmaker to Apple Inc. — is expected to benefit from a boom in AI development, which requires advanced chips.
The migration to bigger ChatGPT-like large language models should boost demand for higher-end chips, which benefits TSMC's leading-edge foundry business, Morgan Stanley analysts including Charlie Chan wrote this week.
Read More: TSMC's Monthly Sales Rise in Latest Sign of Sector Recovery
Read More: Taiwan Stock Index Climbs to Record High on Optimism Over AI
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