TSMC risks losing lead as Asia’s largest company to Tencent amid AI boom

Taiwan Semiconductor Manufacturing Co. risks giving up its lead over Tencent Holdings Ltd. as Asia’s biggest company by market value, with investors focused on the latter’s artificial intelligence plans.

TSMC shares have dropped 11 per cent this year, falling alongside global chip stocks like Nvidia Corp. as concerns mount over the sector’s frothy valuations. Meanwhile, Tencent shares have gained roughly 30 per cent in 2025, helping the internet giant narrow its market cap difference with TSMC to about $109 billion, the smallest gap since late 2023.