Semiconductor Stocks Soar as TSMC (TSM) Drives AI Market Growth

Semiconductor and artificial intelligence (AI) stocks are dominating the market in 2025, with major sector ETFs outperforming the S&P 500. Taiwan Semiconductor Manufacturing Co. (TSMC) stands out as a key driver, supplying advanced chips to industry leaders such as Nvidia and Apple.

More than 60% of TSMC’s revenue now comes from its 3nm and 5nm nodes, with mass production of 2nm chips slated for 2025. The company reported a 33% year-over-year revenue surge in August, underscoring robust demand.

TSMC is committing $165 billion to expand production capacity across smartphones, Internet of Things, and automotive markets. Its technological edge reinforces its position as the world’s leading contract chipmaker in the AI-driven semiconductor boom.