TSMC’s Semiconductor Dominance Poised for Continued Growth Amid AI Boom

TSMC (TSM 0.19%) has solidified its leadership as the world's premier semiconductor foundry, leveraging cutting-edge manufacturing and packaging technologies to outpace competitors. The company's chips power the most advanced AI applications, driving demand across data centers, automotive, PCs, and smartphones. Shares have surged 59% in the past year, dwarfing the broader market's 28% gain.

Revenue growth accelerated to 37% year-over-year for the first eight months of 2025, exceeding management's full-year 30% forecast. High-performance computing (HPC) now accounts for 60% of quarterly revenue, reflecting TSMC's critical role in enabling AI infrastructure. With its technological moat and sector tailwinds, the company is positioned to sustain momentum into 2026.