TSMC stock hits all-time high after Elon Musk confirms early Terafab talks
TSMC shares hovered near all-time highs on Monday.
What happened: Taiwan Semiconductor Manufacturing Company ( TSM ) stock rose to an all-time high on Monday.
What's behind the move: The rise in TSMC stock comes after Elon Musk acknowledged early-stage talks with Taiwan Semiconductor about a potential collaboration on his Terafab semiconductor initiative.
In a recent newsletter, tech journalist Tim Culpan said, "TSMC is exploring ways to work with Elon Musk's Terafab to help the startup chipmaker run its new semiconductor factories in Texas, my sources tell me."
Musk responded to a screenshot of the letter saying, "Just discussions, but something may come of it," on X over the weekend .
Terafab is Musk's plan to build a giant semiconductor factory to serve Tesla ( TSLA ), SpaceX ( SPCX ), and xAI.
US chipmaker Intel ( INTC ), which joined Terafab back in April, declined more than 2%.
What else you need to know: TSMC is the world's largest foundry, and its business has boomed, driven by demand for semiconductors used in artificial intelligence.
The company is undergoing significant expansion in the US as part of a multiyear plan to manufacture chips for its clients, including Apple ( AAPL ), Nvidia ( NVDA ), and AMD ( AMD ).
The stock is up more than 60% year to date.
Ines Ferre is a senior business reporter for Yahoo Finance.
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