Taiwan Semiconductor Manufacturing controls roughly 73% of the global chip foundry market, well ahead of Samsung Foundry's roughly 5.9% share, as AI demand keeps widening the gap. The company's stock now trades below its recent valuation highs even as Wall Street forecasts 35% revenue growth next year.
Taiwan Semiconductor Manufacturing captured approximately 73% of the worldwide foundry market in the second quarter of 2026, according to Counterpoint Research — the second consecutive quarter it has held that share. Its nearest rival, Samsung Foundry, sits at roughly 5.9%.
AI demand widens an already vast lead
TrendForce data points to a similar gap. Global foundry revenue topped $50 billion in the second quarter. TSMC alone collected about 72.5% of that total. The second-place company owned about 5.9%. Samsung Foundry has been stuck in the 5.9% to 7.2% range across recent periods. China's SMIC holds about 5.4%.
AI computing now drives the revenue mix
During the second quarter, 66% of TSMC's revenue came from its high-powered computing segment, which covers AI-related demand. Prior to the AI build-out, smartphones were the company's largest segment. Advanced nodes — chips built on 7-nanometer process technology and below — accounted for 74% of TSMC's wafer revenue in 2025.
Shares trade below recent valuation highs
TSMC's valuation has cooled from where it sat near the end of 2024 and 2025, when the stock touched about 29 times forward earnings. It now trades at about 25.4 times forward earnings. Returning to that prior high before the year is out would deliver roughly 14% upside. Wall Street analysts are forecasting 35% revenue growth for next year.
Matching that capacity would require rivals to build enough production capacity to close the size gap, and the analysis argues it's unlikely any competitor can seize a meaningful share of TSMC's business anytime soon.
Sources: The Motley Fool, Crypto Briefing
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