Taiwan Semiconductor Manufacturing has climbed more than 40% so far this year but still sits about 10% below its June 30 all-time high. With the foundry giant projected to keep growing at a fast clip through 2027, one Motley Fool analyst expects the stock to set a fresh record before 2026 ends.
TSM controls the chip fabrication market
Taiwan Semiconductor Manufacturing has risen over 40% year to date, though the stock remains roughly 10% below the all-time high it set on June 30. Shares have rallied since bottoming out at the end of July, and Motley Fool analyst Keithen Drury argues the stock still has room to climb back to new highs before the year is out.
Nvidia and AMD design chips but do not manufacture them, instead contracting fabrication out to firms such as Taiwan Semiconductor. According to Motley Fool research, Taiwan Semiconductor holds a 72% revenue share of the global semiconductor foundry market, a dominant position that leaves it positioned to benefit as long as tech spending keeps rising.
Growth stays steady above 30%
Taiwan Semiconductor's revenue growth has stayed above the 30% mark for nearly three years. Wall Street analysts now estimate 43% revenue growth for the remainder of 2026 and 34% growth in 2027.
The stock trades at 25.5 times forward earnings, a level Drury says is in line with where it typically trades at this point in the year. Shares closed at $418.95, up 0.71%, giving the company a market cap of $2.2 trillion.
For Drury, that mix of steady growth and a reasonable price tag is what separates the current dip from the stock's all-time high in June.
Source: The Motley Fool
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