TSMC shares reaches record high on Terafab talks

• Taiwan Semiconductor Manufacturing Company (NYSE:TSM) stock reached an intraday all-time high after Elon Musk confirmed preliminary factory partnership discussions.
• The potential Texas semiconductor collaboration caused shares of existing Terafab partner Intel (NASDAQ:INTC) to drop 2%.
• The company aims to expand US manufacturing to supply custom chips for Tesla, SpaceX, and xAI.

Taiwan Semiconductor Manufacturing Company (NYSE:TSM) reached an intraday stock high following confirmed factory partnership discussions.

The Monday stock surge extended a 60% year-to-date gain driven by surging artificial intelligence chip demand.

"Just discussions, but something may come of it," said Tesla (NASDAQ:TSLA) Chief Executive Officer Elon Musk.

The potential Terafab manufacturing alliance in Texas caused shares of rival Intel (NASDAQ:INTC) to drop 2%.

Following the announcement, TSMC's share price was up at $194.

Musk originally established the Terafab project to consolidate semiconductor production for SpaceX (NASDAQ:SPCX) and xAI.

Meanwhile, TSMC continues executing a multiyear domestic expansion plan to supply Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA).