As a pivotal player in semiconductor manufacturing, TSMC is heavily relied upon by major companies like Nvidia and Broadcom for advanced chip fabrication.

Analysts predict that TSMC's revenue from 2nm chips will quadruple between 2025 and 2026, highlighting the company's strategic positioning for future growth.

Despite current market volatility and tariff concerns, TSMC's strategic investments and innovation ensure its long-term growth potential.

Currently, TSMC's stock is viewed as a bargain, trading for less than 20 times forward earnings estimates, making it an attractive investment option.

However, potential tariffs could increase production costs and disrupt supply chains for TSMC and its partners, impacting global semiconductor pricing.

The recent sell-off in the Nasdaq Composite, which dropped nearly 13%, was largely driven by fears of potential tariffs on Taiwan, significantly affecting semiconductor stocks.

TSMC is expected to see substantial growth in AI chip sales, projected to increase by 35% annually over the next decade.

To mitigate risks associated with lower demand, TSMC is investing $100 billion in U.S. manufacturing, including a major operation in Arizona.

Investors are advised to focus on TSMC's long-term growth trajectory and diversify their portfolios while staying informed about geopolitical developments.

In a competitive landscape, companies like Meta are developing their own AI accelerator chips, which could reduce reliance on Nvidia's products by 2026.

Taiwan Semiconductor Manufacturing Company (TSMC) holds a dominant 64% market share as the largest semiconductor foundry globally, positioning itself to benefit from the anticipated tripling of the semiconductor industry by 2040.

In response to soaring demand from AI customers, TSMC plans to increase its capital expenditure by 33% in 2025, focusing on advanced chip production.