Is Taiwan Semiconductor Stock Going to $500?

Taiwan Semiconductor Manufacturing (NYSE: TSM), popularly known arsenic TSMC, is simply a cardinal subordinate successful the planetary artificial quality (AI) infrastructure ecosystem, manufacturing chips for each the large companies that plan AI chips.

This explains wherefore TSMC banal has delivered steadfast gains of 104% to investors implicit the past year, importantly outperforming the S&P 500's 15% summation implicit the aforesaid period. Shares of TSMC are present trading astatine $370 pursuing the company's stellar surge. But volition this foundry elephantine beryllium capable to prolong its momentum and caput to $500?

Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected the 1 little-known company, called an "Indispensable Monopoly" providing the captious exertion Nvidia and Intel some need. Continue »

TSMC clocked a 51% summation successful net successful 2025, to $10.65 per share, driven by a 36% summation successful the apical line. The semiconductor bellwether's net grew faster than its revenue, driven by awesome pricing power.

TSMC is the world's biggest semiconductor foundry with an estimated stock of 72% successful the pure-play foundry market, according to Counterpoint Research. Meanwhile, the institution estimates that it controls conscionable implicit a 3rd of the Foundry 2.0 market, which includes spot packaging, testing, and different verticals successful summation to the axenic foundry concern model.

However, Counterpoint Research estimates that TSMC's stock of the Foundry 2.0 marketplace stood astatine 39% successful the 3rd 4th of 2025, up six percent points from the anterior year. TSMC leads this abstraction arsenic well, with the second-place institution holding conscionable 6%. Moreover, TSMC's Foundry 2.0 rivals are increasing astatine a overmuch slower pace.

TSMC's beardown beingness successful this marketplace gives it robust pricing power. The institution is anticipated to summation the prices of the chips it manufactures for clients specified arsenic Nvidia, Advanced Micro Devices, Broadcom, Qualcomm, Apple, and others done 2029. This should ideally effect successful a larger summation successful its net going guardant than analysts' expectations.

Specifically, analysts are expecting a 34% summation successful TSMC's net this year, followed by a gradual slowdown successful its maturation complaint implicit the adjacent mates of years.

However, don't beryllium amazed if the institution importantly exceeds those expectations. That's due to the fact that TSMC is expecting a 30% summation successful gross this twelvemonth and points retired that its AI accelerator gross is poised to summation astatine a mid-to-high 50% scope done 2029. These factors could yet alteration TSMC to easy deed $500.