(Bloomberg) -- Taiwan Semiconductor Manufacturing Co. rose to its highest-ever level, tracking a global rally in chip stocks fueled by optimism about artificial intelligence. 

The world’s top chip foundry jumped 5.2% to close at NT$725 in Taipei on Monday, a record since its stock listing in 1994. The surge lifted its market capitalization to $597 billion, one step closer to reclaiming a spot in the world’s 10 most-valuable companies.

Read: TSMC Close to Rejoining World’s 10 Biggest Stocks Amid AI Rally

TSMC has soared over 22% so far this year, helping the local benchmark Taiex Index also reach a record high. The main supplier to Apple Inc. and Nvidia Corp. is considered a key beneficiary of the ongoing AI boom, with its executives expecting a return to solid growth this quarter amid signs of a demand recovery. Nvidia’s upbeat results last month further cemented investor optimism about the sector. 

©2024 Bloomberg L.P.