Taiwan Semiconductor Manufacturing Surge in 2026
Taiwan Semiconductor Manufacturing Company (TSMC) has seen its stock price increase by 72% since the beginning of 2025, supported by strong fourth-quarter earnings released in January 2026. As the world’s largest contract semiconductor manufacturer, TSMC achieved a 72% market share, outperforming major competitors like Nvidia and Broadcom.
Management has forecasted capital expenditures for 2026 to be between $52 billion and $56 billion, a 32% increase at the midpoint. This investment is expected to drive a compound annual growth rate of revenue growth from 2024 to 2029 upwards from 20% to 25%, following a remarkable 36% growth in 2025.
Notably, TSMC plans annual price hikes on a significant portion of its revenue-generating chips through 2029, which positions the company for sustained high gross margins and accelerating earnings growth. Currently, TSMC trades at under 24 times forward earnings expectations, significantly lower than Nvidia’s and Broadcom’s multiples, indicating strong potential for further investment growth.
