TSMC also surpassed a trillion euro market value this week, igniting a rally in chipmaker stocks worldwide. TSMC’s clients include AI poster child Nvidia has benefited from the surging demand for AI-capable chips.

Foreign investors have injected €4.8 billion into Taiwan's stock market this year, predominantly influenced by TSMC. According to HSBC, Asian funds remain underweight on Taiwan, suggesting potential for further inflow.

Shares of TSMC surged nearly 80 per cent this year, significantly outperforming the benchmark Taiwan SE Weighted Index, which has risen by 35 per cent.

On Thursday, TSMC's Taipei-listed shares rose over  two per cent to a record T$1,080, propelling the company's market value to T$28 trillion (€861 billion) and establishing it as Asia's most valuable publicly listed firm.

TSMC's American Depositary Receipts (ADRs), initially listed on the NYSE in 1997, soared 4.8 per cent to a record $192.79 on Monday, briefly pushing the firm's market value to €1 trillion.

TSMC is scheduled to report its full second-quarter earnings on July 18.

AI-focused companies, primarily chipmakers, have experienced substantial gains in market capitalisation this year. Nvidia briefly surpassed Microsoft last month to become the world's most valuable company. Nvidia, Microsoft, and Apple all boast market values exceeding €3 trillion.

TSMC's robust results have buoyed global chip stocks, with the Philadelphia semiconductor index reaching a record high on Wednesday.

Daniel Tan, portfolio manager at Singapore-based Grasshopper Asset Management said: "Optimism continues to grow around AI-related demand and potential pricing power, as TSMC's position as a leading foundry supplier should enhance earnings in 2025."

"In an industry grappling with tightening supply, TSMC's value is poised to appreciate further in 2025 as customers vie for sufficient capacity allocation."