Taiwan Semiconductor Manufacturing Company (TSMC) has seen its stock price rise significantly, achieving a 33.8% gain over the past six months, vastly surpassing the Zacks Computer and Technology sector’s 3.4% increase. In the latest financial cycle for 2025, TSMC reported revenues of $122.42 billion, a 35.9% year-over-year increase, alongside a 51.3% rise in earnings per share to $10.65.
Driven by high demand for advanced 3nm and 5nm chips, TSMC anticipates further revenue growth of approximately 30% in 2026, with a projected revenue of $158.2 billion. The company’s capital expenditures are set to increase significantly, from $40.9 billion in 2025 to between $52 billion and $56 billion in 2026 as it continues to lead in the global chip foundry market, particularly in AI-related chip sales.
Despite its strong performance, TSMC’s forward 12-month price-to-earnings (P/E) ratio stands at 23.46, which remains favorable compared to the sector average of 24.60, positioning it as an attractive option for long-term investors.
