Workflow
Get it while it's cheap; World's most important company is still worth less than $1 trillion
TSMTSMC(TSM) Finbold·2025-02-26 10:58

Core Insights - Taiwan Semiconductor Manufacturing (TSMC) has experienced a 49.56% increase in stock price over the last 12 months, reaching 192.33,indicatingstrongperformanceamidtheAIboom[1]−Despitethisgrowth,TSMC′ssharesareconsideredrelativelycheapduetothecompany′scriticalroleinglobalchipmanufacturing[2]CompanyImportance−TSMCisprojectedtocontrol66192.33, indicating strong performance amid the AI boom [1] - Despite this growth, TSMC's shares are considered relatively cheap due to the company's critical role in global chip manufacturing [2] Company Importance - TSMC is projected to control 66% of the global pure-play foundry market share by the end of 2025, highlighting its dominance in the semiconductor industry [3] - The company supplies major technology firms such as Apple, Nvidia, AMD, and Broadcom, underscoring its significance in the tech supply chain [3] Market Outlook - The anticipated transformative impact of AI suggests that TSMC will continue to perform well, as microchips are essential for modern technology [4] - TSMC's semiconductors are integral to various sectors, including automotive, home appliances, medical devices, and security systems, positioning them as vital components in today's economy [5] Financial Performance - TSMC reported record revenue of nearly 90 billion for the entire year of 2024, with over 26billiongeneratedinQ4alone,reflectingstrongfinancialhealth[6]−Thecompany′smarketcapitalizationstandsat26 billion generated in Q4 alone, reflecting strong financial health [6] - The company's market capitalization stands at 982.17 billion, indicating significant growth potential compared to peers like Nvidia, which has a market cap of $3.1 trillion despite lower revenue [7] Geopolitical Considerations - TSMC faces geopolitical risks due to Taiwan's ambiguous status, which could impact its position in the global supply chain [10] - The geopolitical situation may also foster strong relations with Mainland China, while TSMC's strategic importance has led to the establishment of foundries in the U.S. [12]