Taiwan Semiconductor Manufacturing surged 110% in a year, may consider stock split.

From Nasdaq: 2025-01-19 10:31:00

As of Jan. 17, there are 10 public companies with valuations of at least $1 trillion, playing a significant role in the AI revolution. Taiwan Semiconductor Manufacturing (NYSE: TSM) recently joined the trillion-dollar club after a 110% increase in the last year, trading near $213 per share.

TSMC may consider a stock split due to its market cap doubling in a year to over $1 trillion. Stock splits increase outstanding shares but do not impact valuation. Management’s decision to split can signal confidence in the company’s future growth despite the challenges of a higher share count.

TSMC’s position in the chip market and AI infrastructure investments could lead to sustained growth in the coming years. Despite a high share price, the stock’s forward P/E ratio is comparable to the S&P 500. With rising investment in AI and long-term potential, TSMC remains an attractive investment opportunity.

Investors may wonder if TSMC is a buy. Valuation multiples show TSMC’s potential upside, aligning with market growth expectations. The company’s future prospects in AI chip demand make it a compelling long-term investment, regardless of a potential stock split. Don’t miss the opportunity to invest in promising stocks like TSMC.

The Motley Fool’s board includes industry experts with positions in major tech companies. TSMC’s role in the AI revolution and market dynamics make it an appealing investment option. Consider TSMC’s growth potential, valuation multiples, and long-term prospects before making investment decisions.



Read more at Nasdaq: This Trillion-Dollar Artificial Intelligence (AI) Chip Stock Has Surged 110% in the Last Year. Could a Stock Split Be on the Horizon?