Could Investing $10,000 in TSMC Make You a Millionaire?

Core Insights - Taiwan Semiconductor Manufacturing Company (TSMC) has seen a remarkable 706% increase in share price over the past decade, turning a $10,000 investment into over $80,000 [1][2] - The semiconductor market is projected to grow significantly, with estimates suggesting it could reach $1 trillion in annual revenue by 2030 and potentially over $2 trillion by 2032 [4][5] Company Performance - TSMC holds a dominant position in the semiconductor foundry market with a 62% market share, far ahead of its nearest competitor at 11% [7] - The company served 528 customers and manufactured 11,895 products in 2023, contributing to a 31.5% revenue increase in the first 10 months of 2024 compared to the previous year [8] - TSMC anticipates a nearly 30% revenue increase for 2024, indicating sustained growth momentum [9] Market Opportunities - The demand for chips is expected to rise across various sectors, including data centers, smartphones, and automotive industries, driven by the growing adoption of artificial intelligence [5][6] - AI chips alone are forecasted to generate nearly $928 billion in annual revenue by 2034, with a growth rate of 29% [6] Future Projections - TSMC's earnings per share (EPS) is projected to grow from $5.18 in 2023 to $10.35 by 2026, reflecting a compound annual growth rate (CAGR) of nearly 26% [15] - Assuming a conservative 15% annual earnings growth rate, TSMC's EPS could reach $20.95 by 2033, with a potential stock price of $628, representing a 239% increase from current levels [16][17]