Taiwan Semiconductor Manufacturing Company (TSMC) shares reached a 52-week high of $233.82 on July 2, 2023, and closed at $233.60, marking an 18.2% year-to-date increase. This performance outpaces the broader Zacks Computer and Technology sector, which increased by 5.6% during the same timeframe. TSMC’s stock has outperformed key competitors like NVIDIA (17% increase), Advanced Micro Devices (14.6%), and Intel (9.1%).
In Q1 2025, TSMC reported a revenue surge of 35% year over year, totaling $25.53 billion, with net income rising 53% to nearly $11 billion. The strong performance was driven by high demand for 3nm and 5nm chips, which account for 58% of total wafer sales. The company anticipates doubling its AI-related revenues by 2025, aiming for a 40% compound annual growth rate over the next five years, positioning TSMC as a leader in AI-driven technologies.
TSMC’s P/E ratio stands at 23.32, below the sector average of 26.7, enhancing its attractiveness to long-term investors. The company plans to invest $38 to $42 billion in capital expenditures in 2025, up from $29.8 billion in 2024, focusing on advanced manufacturing processes to maintain its competitive edge.
