ai demand propels tsmc valuation to new heights

2025-09-18 tsmc

taipei, Thursday, 18 September 2025.
taiwan semiconductor manufacturing company’s valuation is soaring. the surge is fueled by an insatiable global demand for advanced ai chips. tsmc’s stock has skyrocketed, showing a 58.3% jump over the past year. Year-to-date, the increase is 30.0%. Investors worldwide are taking notice. This growth showcases the market’s strong confidence in tsmc. The company is positioned to dominate the expanding ai market. It will maintain its leading position in semiconductor manufacturing.

recent stock performance

On September 16, 2025, TSMC’s stock closed at NT$1280, a NT$30 increase, marking a new record high [3]. However, the stock later fell by NT$5 to NT$1275 [3]. TSMC’s american depositary receipt (adr) closed at $262.06 on September 17, 2025, which is up $1.496, or 0.57%, equivalent to NT$1577.65 per share [3]. The stock’s performance is heavily influenced by positive sentiment surrounding the ai sector [3][6].

analyst perspectives

Analysts have generally positive outlooks on TSMC. Wei Ming-yu, an analyst at Ruiyuan Securities, anticipates substantial revenue growth for TSMC this year, primarily driven by robust demand for ai-related businesses [3]. Foreign institutions’ target prices for TSMC range from NT$1320 to NT$1400, with some estimates reaching as high as NT$1700 [3]. The average target price for TSMC’s U.S. adr is approximately $270 to $280, with the highest exceeding $300 [3]. An analyst at Global Securities notes that TSMC’s strong position in advanced chip manufacturing positions it as a key player in the ai boom [3].

market dynamics and geopolitical factors

The broader Taiwan stock market context reveals that on September 17, 2025, the market fell by 191.39 points, closing at 25438.25 [4]. This broke the 25500 point mark, while on September 16, 2025, TSMC had hit a new closing high of 1280 yuan, up 30 yuan, contributing to the stock market rising 272.48 points and closing at 25629.64 points, also a new closing high [4]. Concerns exist regarding potential impacts from U.S. tariffs, with 7334 people in Taiwan currently on reduced work hours due to these tariffs, an increase of 3191 people compared to the previous period [4].

manufacturing capacity and expansion

TSMC is actively expanding its manufacturing capabilities to meet the growing demand. The company’s 2nm process is expected to have more new product introductions in its first two years compared to its 3nm and 5nm processes [3]. TSMC plans to further expand its manufacturing capacity in Arizona by 2027 [3]. This expansion is crucial as TSMC’s ai revenue compound annual growth rate (cagr) is projected to be between 44% and 46% in the coming years [3].

Bronnen

tsmc valuation ai chip demand