TSMC Stock: Why It Could Reach $380 with Massive 75% Upside

Do you know that nearly every smartphone, gaming console, or AI device you use depends on just one company to work? That company is TSMC, short for Taiwan Semiconductor Manufacturing Company. It makes over 90% of the world’s most advanced computer chips, and big tech names like Apple, NVIDIA, and AMD rely on it every day. Right now, the TSMC stock trades far below what some experts think it’s worth.

Many believe it could jump by 75%, reaching $380 per share. Why? Because the demand for powerful chips is rising fast, especially for AI, electric cars, and cloud computing. And TSMC is leading that race.

Let’s explore why TSMC is in such a strong position, what’s driving its growth, and what risks still exist. If you’re curious about investing or just want to understand the tech world better, this might be the insight you need.

TSMC at a Glance

TSMC is the world’s largest contract chipmaker. It makes almost all of the latest chips for Apple, NVIDIA, AMD, and more. They lead the industry in making 3nm and 5nm chip technology that few rivals can match.

TSMC Stock: Financial Strength & Performance

In May, TSMC reported revenue of NT$320.5 billion (~ US$10.7 billion). That’s nearly 40% higher than last year, despite a small drop from April.

Gross margins are almost 60%, and operating margins approach 50%, while free cash flow hit NT$295 billion for the quarter. The company plans a mid-20% total sales growth in 2025.

Growth Drivers Behind the 75% Upside

AI and HPC Demand

AI chip demand is extremely strong. TSMC expects AI chip revenue to double in 2025 and grow another ~45% annually for five years. They dominate with advanced packaging technologies like CoWoS and SoIC, critical for high-end AI chips.

Smartphone & Automotive Demand

TSMC supplies Apple’s latest chips and shares ~59% of revenue from high-performance computing, which includes smartphone and AI chips. Automotive chips are a smaller part today, but growth is picking up as electric and smart cars require more silicon.

Geopolitical & Supply Chain Shifts

TSMC is building fabs in Phoenix (Fab 21, 4nm/node, soon 3nm) and Japan, plus a $165 billion boost in US investment. They’ll also open a Munich design center in Q3 2025 to support EU clients. Spreading factories globally lowers geopolitical risk.

Valuation & Analyst Forecasts

Trading News values TSMC at $380 based on its packaging edge and global footprint. Current P/E ratios are below peers despite best-in-class margins. With free cash flow of ~ US$35 billion annualized and ~20% growth, a DCF model supports a $380+ price given a modest 3% terminal growth and 9% discount rate.

Risks to Consider

We must watch the China‑Taiwan tension. But TSMC’s global fabs help reduce this risk. Tariff worries have faded, CEO C.C. Wei said, and TSMC can handle import surcharges. Still, the chip industry is cyclical. Overbuilding or slowed demand could hurt margins. Competitors like Samsung and Intel are investing heavily in their foundries.

Investor & Institutional Activity

Institutional investors remain bullish. Traders view TSMC as a top AI play, with some using options strategies to bet on slow growth below $240. Insider holdings are stable, showing confidence.

Conclusion: Is TSMC a Buy Now?

We see strong reasons to believe TSMC could reach $380. It leads in advanced nodes and packaging, rides the AI wave, and grows globally. Its cash flow fuels long-term growth. While short-term volatility is possible, the long-term outlook is solid. For investors who believe in AI, cloud, and global chip demand, TSMC is a powerful pick.

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Disclaimer:

This content is for informational purposes only and not financial advice. Always conduct your research.