Prediction: Taiwan Semiconductor Could Surge by 128% in the Next 5 Years

Core Viewpoint - Taiwan Semiconductor (TSMC) is expected to experience significant stock growth over the next five years, with a projected revenue increase of 128% based on a compounded annual growth rate (CAGR) of approximately 18% [1][6]. Company Expansion - TSMC is expanding its manufacturing capabilities in the U.S. with a $100 billion investment, which includes two packaging centers and one research and design operation [3]. - The expansion is driven by client demand for U.S.-produced chips, rather than political pressure [3]. - TSMC's existing Arizona facility has already sold out production through 2027, indicating a need for increased capacity [3]. Market Position - TSMC is a leading contract chip manufacturer, serving major tech companies like Apple and Nvidia, and is expected to maintain its dominant position in the industry [2]. - The company has a strong insight into chip demand trends, as orders are often placed years in advance, making its management's predictions valuable for investors [5]. Financial Metrics - TSMC's stock currently trades at 22 times trailing earnings, which is below its historical average over the past five years [7]. - From a forward earnings perspective, TSMC's stock is also cheaper compared to historical data, trading at a slight discount relative to the S&P 500 [9]. - If TSMC maintains its margins, the revenue growth is likely to translate into stock price growth, making it an attractive investment opportunity [10].