TSMC Hits $1 Trillion Market Cap Amid AI Chip Boom

AI chip maker TSMC joins the $1 trillion market-cap club

Taiwan Semiconductor Manufacturing Co. (TSMC) reached a $1 trillion market capitalization for the first time last week, amid soaring demand for artificial intelligence chips. On Friday, TSMC saw its shares in Taiwan hit an all-time high of NT $1,155 ($39.3 USD), rounding off a rally of almost 50% since April. TSMC is the first Asian company to cross the $1 trillion threshold since PetroChina in 2007. The milestone came after the company posted strong earnings, which buoyed shares. In U.S. dollars, second-quarter revenue was $30.07 billion, up 44.4% year-over-year and up 17.8% from the previous quarter. The company raised its full-year revenue forecast to around 30% growth, suggesting its position to capitalize on the race for AI manufacturing capacity. "Our business in the second quarter was supported by continued robust AI and HPC-related demand," said Wendell Huang, CFO of TSMC. "Moving into third quarter 2025, we expect our business to be supported by strong demand for our leading-edge process technologies." "TSMC's fabs are arguably the most important real estate in the world," Chris Miller wrote in his 2022 book Chip War. Soaring demand for these semiconductors have led shares in TSMC to triple since 2023. On the benchmark MSCI Emerging Markets index, which captures large and mid-cap representation across 24 countries, TSMC accounts for 10.2% of its weight and about 40% of the its returns this year. While Taiwan has thus far been spared from President Donald Trump's reciprocal tariffs on U.S. imports, the trade war could still have consequences for the chipmaker should the technology that it powers become more expensive for consumers. "There are uncertainties and risks from the potential impact of tariff policies, especially on consumer-related and the price-sensitive market segment," TSMC CEO C.C. Wei said during an earnings call. Yet, Wei downplayed these risks during the company's annual shareholders meeting last month: "If demand drops, TSMC's business could be affected. But I can assure you that AI demand has always been very strong and it's consistently outpacing supply." What's more, the plunging U.S. dollar also poses a threat to TSMC's margins as "nearly all" of its revenue is in USD, but reported in NT. The U.S. dollar is down 10% this year against a basket of currencies, with the USD/NT exchange rate down by the same margin. "Fluctuations in the exchange rate between the dollar and NT will have a sizable impact on our reported revenue and gross profit margin," said Huang during Friday's call. Every 1% appreciation of NT against USD will reduce reported revenue by 1%, and gross margin by about 40 basis points, he continued. Second-quarter revenue fell by about 4.4% and gross margin by about 180 basis points. The company forecasts this currency trajectory will continue in the third quarter, cutting revenue by 6.6% and gross margin by about 260 basis points.

TSMC just hit a $1 trillion market cap. These 5 companies could be next

Last week, Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM), also known as TSMC, crossed an important psychological threshold for investors. The Taiwanese company surpassed a $1 trillion market capitalization, making it the first Asian company to do so since China's PetroChina oil and gas giant briefly achieved this milestone in 2007, notes GuruFocus. TSMC manufactures the most advanced computer chips in the world, which are essential for running the most complex AI tasks. The company makes chips for a variety of tech giants, including Nvidia and Apple. As of the time of this writing, TSMC has a market capitalization of approximately $1.2 trillion. The chipmaking giant has achieved this 12-figure valuation on the strength of its chip business in recent months, which has seen a surge in demand thanks to the artificial intelligence boom sweeping the world. But the question many people may be wondering now is who's next in line to join the $1 trillion club? Here's what the numbers say.

TSMC Nearly Reaches Tesla's Market Cap | AIM

Taiwan Semiconductor Manufacturing Company (TSMC) has reached a market capitalisation of TWD 29.30 trillion (~$1.03 trillion), matching that of electric carmaker Tesla in valuation. As of July 22, TSMC's stock stood at TWD 1,130, with a high of TWD 1,160 and 0.89% growth over the past five trading days. TSMC became only the third semiconductor company, after NVIDIA and Broadcom, to hit the $1 trillion mark. This isn't the first time TSMC has brushed against the trillion-dollar milestone. In July last year, the chipmaker briefly hit this mark before slipping amid market fluctuations. The company remains a critical supplier of advanced chips to global firms like Apple and NVIDIA. With this rise, TSMC joins the ranks of trillion-dollar firms, including Apple (~$3.17 trillion), Microsoft (~$3.79 trillion) and Alphabet (~$2.31 trillion). NVIDIA currently leads the tech sector with a valuation of $4.18 trillion, as of today. TSMC's next earnings call and its developments in 2nm and 1.4nm technologies are expected to influence the stock's trajectory in Q3. For its recent Q2 FY26 results, TSMC announced consolidated revenue of $30.07 billion, representing a 44.4% year-over-year increase and a 17.8% quarter-over-quarter increase. In the second quarter, the company's shipments accounted for 24% of total wafer revenue for 3 nm, 36% for 5nm, and 14% for 7nm. "Our business in the second quarter was supported by continued robust AI and HPC-related demand," Wendell Huang, senior VP and chief financial officer of TSMC, said. "Moving into third quarter 2025, we expect our business to be supported by strong demand for our leading-edge process technologies." In October last year, for Q2 FY25, the chip maker had outpaced its rivals, Samsung and Qualcomm, in the semiconductor foundry space with its advanced technology, manufacturing capabilities, research and strategic partnerships. Earlier in June, TSMC accelerated the construction of its second chip plant in Arizona, following an additional $100 billion investment in the United States announced in March. This came amid growing geopolitical concerns and efforts to diversify its manufacturing base outside Taiwan. The company also made headlines after rejecting an invitation to set up factories in India, citing concerns around infrastructure and supply chain readiness. Meanwhile, Meta was reported to be in talks with TSMC to manufacture its first in-house AI chip, expanding the chipmaker's growing list of global tech clients.

Taiwan Semiconductor's Trillion-Dollar Power Play - Taiwan Semiconductor (NYSE:TSM)

Taiwan Semiconductor Manufacturing Co. TSM plans to start construction on four new fabs later this year, targeting mass production of 2-nanometer chips by late 2028, according to Central Taiwan Science Park Bureau Director-General Hsu Maw-shin. The new facilities, designated Fab 25, will house four 1.4-nanometer wafer production lines. The contract chipmaker aims to complete risk assessments by 2027 and ramp up to a monthly output of 50,000 wafers, the Taipei Times reported on Sunday. Taiwan Semiconductor has already leased the land for the new fabs, with the Central Taiwan Science Park transferring the site last month. The park's second-phase expansion will begin with soil and water conservation infrastructure, including detention ponds. Also Read: Taiwan Semiconductor CFO Warns Of Margin Pressure, Prudent $42 Billion CapEx Plan Hsu projected that the park's annual turnover will exceed 1.2 trillion New Taiwan dollars ($40.81 billion), setting a new record. During Taiwan Semiconductor's second-quarter earnings call, Chairman C.C. Wei disclosed that the company will allocate about 30% of its 2-nanometer and more advanced chip capacity to Arizona after completing its $165 billion U.S. investment. That investment includes six wafer fabs, two advanced packaging facilities, and a major R&D center. Wei also said Taiwan Semiconductor plans to build 11 wafer fabs and four advanced packaging facilities globally over the next few years. The company is preparing additional 2-nanometer fabs in Hsinchu and Kaohsiung to meet growing customer demand. Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get Started Taiwan Semiconductor closed with a market value above $1 trillion in Taipei for the first time last week, driven by a sharp rise in sales forecasts fueled by soaring demand for artificial intelligence chips. The chipmaker's shares surged to a record high on Friday, marking a nearly 50% gain since April and making it the first Asian stock to top the $1 trillion mark since PetroChina briefly did so in 2007, Bloomberg reported on Monday. The chipmaker is a key Nvidia NVDA and Apple AAPL supplier. The company raised its full-year revenue growth outlook to around 30%, signaling strong positioning amid intensifying competition for AI chip production. Goldman Sachs analysts, including Bruce Lu, observed that demand for Taiwan Semiconductor's advanced nodes continues to grow steadily. They anticipate the company will introduce more significant price increases in 2026 as AI-driven orders remain strong. Price Action: TSM stock is trading higher by 0.37% to $241.29 premarket at last check Monday. Read Next: Meta Raids Apple's AI Lab With Big Paychecks -- Zuckerberg Bets To Win The AI Race Photo by Jack Hong via Shutterstock TSMTaiwan Semiconductor Manufacturing Co Ltd$241.870.61%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum84.51Growth28.25QualityN/AValue49.24Price TrendShortMediumLongOverviewAAPLApple Inc$211.980.38%NVDANVIDIA Corp$172.940.31%Market News and Data brought to you by Benzinga APIs