From Yahoo Finance: 2025-04-06 12:05:00

Taiwan Semiconductor Manufacturing (TSM) is a leading semiconductor foundry, serving key partners like Nvidia and Apple. Despite a recent pullback, the stock has surged over 200% in the last five years. TSMC’s role in the AI pipeline and chip production has positioned it for strong growth in the next five years.

TSMC’s production of AI chips and GPUs is crucial to AI development and data center operations. The company currently produces around 90% of the world’s advanced chips and saw its high-performance computing segment, including AI chips, grow by 58% last year. Management expects a mid-40% compound annual growth rate for AI accelerator revenue over the next five years.

While TSMC’s stock may see positive growth in the coming years, it’s important to note that the Motley Fool Stock Advisor team did not include it in their list of the 10 best stocks for investors to buy now. The team’s total average return is 730%, significantly outperforming the S&P 500’s 147% return. For more insights and top stock picks, consider joining Stock Advisor.

Read more: Taiwan Semiconductor Manufacturing Will Soar Over the Next 5 Years. Here’s 1 Reason Why.