Taiwan Semiconductor Manufacturing Co. (TSMC) shares jumped 5% to an all-time high on Friday, following an announcement from Taiwan’s financial regulator to relax investment limits for domestic equity funds. The new rules allow these funds and actively managed ETFs to allocate up to 25% of their assets to any single stock that comprises more than 10% of the Taiwan Stock Exchange, a significant increase from the previous 10% cap.
This regulatory shift is poised to enhance demand for TSMC shares, particularly as the company recently reported a 58% year-over-year profit increase, driven by the surging demand for semiconductors in the AI sector. TSMC’s net income of 572.48 billion new Taiwanese dollars for Q1 marks its fourth consecutive quarter of record profits, solidifying its position as Asia’s most valuable tech firm.
For market professionals, the increased allocation potential could lead to heightened volatility and trading activity in TSMC shares, making it a focal point for investors looking to capitalize on the growing AI-driven semiconductor market.
Source: cnbc.com