Taiwan Semiconductor Manufacturing Company (TSMC) has recorded a 67.8% stock gain over the past year, significantly outperforming the Zacks Computer and Technology sector, which gained 27.9%. As a leading chip manufacturer, TSMC has been key to the AI boom, producing high-performance chips for major clients like NVIDIA, Broadcom, and Marvell Technology.
For the financial year 2025, TSMC reported revenues of $122.42 billion, reflecting a year-over-year increase of 35.9%, while earnings per share rose by 51.3% to $10.65. The company expects a revenue increase of approximately 30% in 2026, with projected revenues at $158.2 billion, driven primarily by demand for its 3nm and 5nm chips, which account for over 60% of total wafer sales.
TSMC plans to invest $52 billion to $56 billion in capital expenditures by 2026 to enhance its manufacturing capabilities, up from $40.9 billion in 2025. The company currently trades at a forward price-to-earnings (P/E) ratio of 24.1, below the sector average of 25.93, maintaining its attractiveness for long-term investors.
