Taiwan Semiconductor Joins Trillion-Dollar Club with 90% Stock Surge

TAIPEI, Taiwan — Taiwan Semiconductor Manufacturing Company (TSMC) has become the latest member of the trillion-dollar club, with its stock surging 90% in 2024. The chipmaker’s market capitalization now exceeds $1 trillion, joining an elite group of just 10 public companies worldwide.

TSMC’s rapid growth has been fueled by strong financial performance and increasing demand for its semiconductor products. In 2024, the company reported year-over-year revenue growth of 38.8% in the fourth quarter, with earnings per share increasing by 57% during the same period. These figures represent a significant acceleration from earlier in the year, when first-quarter revenue growth stood at 16.5%.

“TSMC is a rare example of a business this size that’s accelerating its top- and bottom-line growth,” said a financial analyst familiar with the company. “The company’s EPS growth is climbing at a faster rate than sales, which is particularly impressive.”

The semiconductor giant’s success comes amid growing demand for advanced chips, particularly those used in artificial intelligence applications. Major tech companies, including Microsoft, Alphabet, Amazon, and Oracle, are planning significant investments in data centers and AI infrastructure, all of which will require TSMC’s cutting-edge manufacturing capabilities.

Despite its trillion-dollar valuation, some analysts believe TSMC remains undervalued. The company’s price-to-earnings (P/E) ratio of 25 is only slightly higher than the S&P 500’s average forward P/E of 24. This relatively modest valuation, combined with strong growth prospects, has led some investors to view TSMC as an attractive opportunity.

“This is a period of normalization after TSMC traded at a discount to other chip companies for a prolonged period,” the analyst added. “With secular tailwinds fueling AI, TSMC could witness many more years of compounding revenue and earnings growth.”

As of January 24, 2025, TSMC’s stock price stood at $221.88, down 1.22% for the day but still near its all-time high. The company’s market capitalization of $1.151 trillion makes it one of the most valuable companies in the world, and its continued growth suggests it may remain a key player in the global tech industry for years to come.