Taiwan Semiconductor Manufacturing Company (TSMC) has surpassed a market valuation of $1 trillion, solidifying its position as the most valuable company in Asia.

This milestone follows a robust second-quarter revenue performance driven by the growing demand for AI chips.

The global surge in chipmaker stocks, sparked by the AI boom, has particularly benefited TSMC. As the world’s largest contract chipmaker, TSMC supplies major tech companies, including Nvidia and Apple. Nvidia, a key player in AI technology, has significantly contributed to TSMC’s growth.

Foreign investments in Taiwan’s stock market, predominantly influenced by TSMC, have reached $4.8 billion this year. Despite this, HSBC reports that Asian funds are still underweight in Taiwan, indicating potential for further investment inflows.

TSMC’s shares have surged nearly 80% this year, significantly outperforming the Taiwan SE Weighted Index, which has risen by 35%. On Thursday, TSMC’s shares in Taipei climbed over 2% to a record T$1,080, elevating its market value to T$28 trillion ($861 billion), securing its spot as Asia’s most valuable publicly listed company.

Additionally, TSMC’s American Depositary Receipts (ADRs), listed on the NYSE since 1997, saw a 4.8% increase to a record $192.79 on Monday, briefly pushing the company’s market value to $1 trillion. By Wednesday, the ADRs closed at $191.05.

TSMC will release its full second-quarter earnings on July 18. The company’s strong performance has boosted global chip stocks, with the Philadelphia semiconductor index rising 2.4% to a record high on Wednesday.