Prediction: This Artificial Intelligence (AI) Stock Will Be Worth $3 Trillion in 5 Years

Core Insights - Taiwan Semiconductor Manufacturing Company (TSMC) is a leading player in the global semiconductor industry, holding a dominant 67% share of the third-party foundry market, significantly ahead of Samsung's 11% [2][5] - The demand for AI chips is expected to drive TSMC's market cap significantly higher, with projections suggesting it could triple in the next five years [3][6] - TSMC is investing aggressively in expanding its manufacturing capabilities, with plans to invest $165 billion in the U.S. for new facilities and R&D [8][9] Market Position and Growth Potential - TSMC's foundry market share has increased from 58% to 67% over the past few years, indicating strong growth [2] - The global AI chip market is projected to grow at an annualized rate of 35% through 2033, with TSMC forecasting mid-40% compound annual growth for its AI accelerator revenue over the next five years [6][7] - The Foundry 2.0 market, which includes packaging and testing, is expected to grow to $298 billion in 2025, with TSMC's share projected to rise to 37% [11][12] Future Projections - If TSMC captures a 60% share of the Foundry 2.0 market in five years, its annual revenue could reach $262 billion, nearly three times its 2024 revenue [13] - With a higher sales multiple in five years, TSMC's market cap could exceed $3 trillion, reflecting its potential for accelerated growth compared to previous years [14]