Taiwan Semiconductor Manufacturing Company (TSMC) is the world’s largest and most advanced semiconductor manufacturer, and its stock could reach $600 in the coming years due to its dominant market position and the growing demand for cutting-edge technology. TSMC commands over 50% of the global foundry market and nearly 90% of the advanced chip market (5nm and below), making it the top supplier for major companies like Apple, Nvidia, AMD, and Qualcomm. As industries increasingly require more powerful and efficient chips for AI, 5G, cloud computing, and autonomous vehicles, TSMC’s expertise in producing next-generation semiconductors (3nm and soon 2nm) gives it a significant competitive advantage. Furthermore, the global chip demand is expected to grow substantially, driven by advancements in AI applications, where companies like Nvidia and OpenAI rely heavily on high-performance semiconductors. TSMC is also strategically expanding its capacity with new fabrication plants in Taiwan, Arizona, and Japan, which will help it capture long-term growth opportunities and solidify its leadership. With these growth drivers in place, TSMC’s stock is poised to see a significant rise, potentially reaching $600 as it capitalizes on these trends.

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The user M_Kabesh holds no position in NYSE:TSM. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.