This Tech Stock Could Turn $1,000 Into $16,000

• Taiwan Semiconductor has averaged a 23% annualized full instrumentality implicit the past 20 years.

• TSMC's manufacturing capabilities are acold beyond those of its biggest competitors.

• Many of the world's apical tech companies trust connected TSMC to marque their chips.

• 10 stocks we similar amended than Taiwan Semiconductor Manufacturing ›

One of the astir important tech companies successful the satellite is semiconductor (chip) shaper Taiwan Semiconductor Manufacturing (NYSE: TSM), oregon TSMC. It's the world's largest semiconductor foundry and 1 of the astir invaluable companies, with a marketplace headdress of implicit $1.7 trillion arsenic of marketplace unfastened connected Jan. 21.

If TSMC's banal terms momentum were to continue, it could beryllium a banal that turns $1,000 into $16,000. It won't hap overnight oregon successful the adjacent twelvemonth -- oregon adjacent successful a fewer years -- but it's precise overmuch wrong scope for semipermanent investors who person patience.

Over the past 20 years, Taiwan Semiconductor's banal has averaged 19% returns (or 23% erstwhile including dividends). I don't expect this to proceed implicit the adjacent 20 years, but if we instrumentality a much "conservative" 15% yearly mean instrumentality estimate, a $1,000 concern contiguous could beryllium worthy implicit $16,300 successful 20 years.

Only clip volition archer however Taiwan Semiconductor's banal performs, but 1 happening is for sure: Its concern is built for sustained success. Its spot manufacturing capabilities are leagues up of that of its closest competitor, making it the go-to for chips utilized successful everything from smartphones to computers to TVs, to information centers to cars and more.

With the tens of billions successful investments and years of probe and improvement it takes to physique and support cutting-edge fabrication plants (where chips are created), I don't foresee TSMC losing its ascendant presumption anytime successful the foreseeable future.

Before you bargain banal successful Taiwan Semiconductor Manufacturing, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Taiwan Semiconductor Manufacturing wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.

Consider erstwhile Netflix made this database connected December 17, 2004... if you invested $1,000 astatine the clip of our recommendation, you’d person $464,439!* Or erstwhile Nvidia made this database connected April 15, 2005... if you invested $1,000 astatine the clip of our recommendation, you’d person $1,150,455!*

Now, it’s worthy noting Stock Advisor’s full mean instrumentality is 949% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest apical 10 list, disposable with Stock Advisor, and articulation an investing assemblage built by idiosyncratic investors for idiosyncratic investors.