Prediction: Taiwan Semiconductor Manufacturing Will Soar Over the Next 5 Years. Here's 1 Reason Why.
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The analysis indicates that What's remarkable is Chipmaking giant Taiwan Semiconductor Manufacturing (TSM -2. 12%) -- also known as TSMC -- doesn't get the attention that other big companies tend...
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July 18, 2025
06:45 AM
The Motley Fool
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The analysis indicates that What's remarkable is Chipmaking giant Taiwan Semiconductor Manufacturing (TSM -2. 12%) -- also known as TSMC -- doesn't get the attention that other big companies tend to get, but it's an under-the-radar dynamo that powers much of the world's nology
Additionally, Companies come to TSMC with chip designs; TSMC brings those designs to life (fascinating analysis), in today's market environment
In the past five years, TSMC's stock is up around 252%, more than 2
On the other hand, 5 times the S&P 500 index's gains in that span (as of July 14) (which is quite significant)
Additionally, Nobody knows how the stock will perform over the next five years, but I predict it will continue soaring
On the other hand, Its critical role in the artificial intelligence (AI) pipeline, in light of current trends
TSMC's semiconductors power data centers, which together make training and deploying AI possible
The evidence shows s ability is leagues ahead of competitors', making it the go-to for AI chip manufacturing, and the demand has begun showing in its financials
Management at the Taiwan-based company expects its AI accelerator revenue to double this year and duce a compound annual growth rate (CAGR) in the mid-40% range until 2029 (starting from 2024)
This would be a huge boost to TSMC's revenue, which has been impressive already, more than doubling in the past five years
TSM Revenue (Quarterly) data by YCharts With major AI players Nvidia and Advanced Micro Devices relying so heavily on TSMC, the chipmaker is uniquely positioned to benefit from the industry's natural growth, in light of current trends
More AI adoption requires more AI training; more AI training requires more data centers; more data centers require more chips; and more chips require TSMC's manufacturing ability
No competitor can come reasonably close to TSMC's dominance in the next five years
That should reflect in its overall stock growth in that span, considering recent developments.
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