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Key Points
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The demand for next-generation AI processors has surged in recent years.
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Taiwan Semiconductor Manufacturing Company (TSMC), a key player in the AI sector, is well-positioned to benefit from this demand.
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TSMC’s stock is attractively priced given its market growth potential.
Taiwan Semiconductor Manufacturing Company (TSMC), with a current market cap of approximately $1.3 billion, is predicted to reach a $2 trillion market cap by 2028, driven by the accelerating demand for AI-related chips. Revenue surged 44% year-over-year to $30 billion in Q2, with management forecasting third-quarter revenue of $32.4 billion, reflecting a growth of about 38%.
TSMC now generates 60% of its revenue from high-performance computing (HPC) and AI processors. Wall Street forecasts TSMC’s revenue will reach $122 billion by 2025, with projections of continued growth at 16% in 2026 and 19% in 2027. As the largest semiconductor foundry, it is poised to capitalize on the ongoing AI boom, with the potential to achieve a $2 trillion valuation sooner than expected due to its performance.
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