tsmc dominates chip market amid nvidia surge

2025-08-05 tsmc

Taipei, Tuesday, 5 August 2025.
taiwan semiconductor manufacturing company continues to lead the global chip foundry market in 2024, commanding a mid-60s market share. bolstered by substantial demand from nvidia, tsmc’s growth is under scrutiny by investors, who are also closely watching geopolitical factors. the company’s stock (TSM) has seen impressive returns since its IPO, outperforming the S&P 500. specifically, tsmc’s return since IPO is a staggering 7,243% versus the S&P 500’s 550%.

stock performance and valuation

Taiwan Semiconductor Manufacturing (TSM) closed at $238.82 on Tuesday, showing a $3.61 increase [2]. Extended trading saw a further rise to $239.06 [2]. TSM’s 52-week range has been between $133.57 and $248.28 [2]. The stock’s market capitalization stands at $1.24 trillion, with a P/E ratio of 27.23 and a dividend yield of 1.03% [2]. The consensus rating for TSM is ‘Buy,’ with an average price target of $258.33 [2].

earnings and growth expectations

On July 17, 2025, TSMC reported earnings per share of $2.47 for the quarter [2]. This exceeded the consensus estimate of $2.13 by $0.34 [2]. Revenue saw a 44.4% year-over-year increase [2]. Earnings are projected to grow by 19.89% in the coming year, climbing from $9.20 to $11.03 per share [2]. The company’s fiscal year concludes on December 31, 2025 [2].

institutional ownership and market dynamics

Key institutional shareholders of TSM include Jennison Associates LLC, WCM Investment Management LLC, and PineStone Asset Management Inc. [2]. Yuanta Taiwan Excellence 50 ETF allocates a significant portion of its assets to TSMC, holding 342,773,959 shares, representing 58.85% of the fund’s weighting [4]. This concentration underscores TSMC’s importance in the Taiwanese stock market [4]. Recent reports also highlight that TSMC’s ADR rose by 1.66%, nearing its historical high [7].

intel’s strategic shift and potential benefits for tsmc

Intel’s recent suggestion of potentially abandoning its 14A process node has sparked discussions about a possible shift towards a fabless model [6]. Bernstein analysts suggest that if Intel reduces its capital expenditure, companies like TSMC could benefit from increased demand [6]. Should Intel exit the wafer manufacturing business, TSMC and Samsung would likely gain, as customers seek alternative foundries [6]. This transition could also lead to a higher market share for TSMC suppliers like HOYA Corporation [6].

risks and considerations

Despite positive analyst ratings, investors should consider potential risks [5]. Geopolitical factors and market volatility could impact TSMC’s stock performance [1]. Investors should carefully consider their own investment objectives, financial situation, and risk tolerance before making any decisions regarding TSM stock [5]. Accessing and reviewing financial analysis tools and data related to TSMC can also aid investors in making well-informed decisions [5][8].

Bronnen

tsmc market share nvidia demand