Here’s What a $10,000 Investment in TSMC Stock Will Be Worth by 2030
Taiwan Semiconductor Manufacturing(NYSE:TSM), popularly known as TSMC, is one of the most important companies in the semiconductor ecosystem, as it is the world's largest semiconductor foundry, manufacturing chips for other companies.
TSMC doesn't design any chips of its own. It manufactures chips for fabless chipmakers, including Nvidia, Advanced Micro Devices, and Broadcom, as well as consumer electronics giants such as Appleand Sony. The chips made by TSMC find their way into multiple applications, such as data center servers, vehicles, personal computers, and smartphones.
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Not surprisingly, TSMC stock has been an outstanding investment in recent years. A $10,000 investment made in TSMC five years ago is now worth over $38,000. The good news is that it isn't too late to buy this semiconductor stock. Let's look at the reasons why it is a good idea to put $10,000 into TSMC even after the terrific gains it has clocked over the past five years.
Image source: Taiwan Semiconductor Manufacturing.
TSMC's addressable market is getting bigger
TSMC dominates the global pure-play foundry market with an estimated market share of 73%, according to Counterpoint Research. However, TSMC is now more than just a pure-play foundry company. It also provides advanced packaging, testing, and photomasking services. TSMC calls this expanded market Foundry 2.0, which encompasses the overall semiconductor manufacturing ecosystem, excluding memory chips.
Counterpoint Research notes that the global Foundry 2.0 market's revenue increased by an impressive 25% year over year in Q2 to $96.6 billion, up from the 24% increase in Q1. TSMC is the biggest player in Foundry 2.0, controlling 42% of this space in Q2. Notably, TSMC's share of the Foundry 2.0 market has increased from 38% at the end of 2025.
Even better, Counterpoint Research expects TSMC's Foundry 2.0 revenue to grow by 50% year over year in the second half of 2026, implying an improvement over the 34% revenue growth seen in Q2. So, TSMC's share of the Foundry 2.0 market is likely to get even better by the end of the year.
Importantly, the Foundry 2.0 market is anticipated to keep growing at a healthy pace over the long run. Market research firm IDC expects the Foundry 2.0 market's revenue to exceed $360 billion in 2026. Even better, the firm expects this market to clock a compound annual growth rate (CAGR) of 11% through 2030, indicating that TSMC's addressable opportunity could increase to almost $550 billion by the end of the decade.
I won't be surprised to see TSMC's Foundry 2.0 share increasing further by the end of the decade, driven by the strong demand for its advanced chip manufacturing. Specifically, TSMC sees demand for its advanced manufacturing nodes used in artificial intelligence (AI) applications increasing at a high 50% CAGR through 2029.
So, there is a strong chance that TSMC will outpace the broader market over the next four years. Also, the stronger market share will improve TSMC's pricing power. The foundry giant is expected to implement price hikes of up to 10% in 2027, as Reuters reported in July. TSMC is therefore on track to benefit from strong volumes and favorable pricing, which should ensure robust top- and bottom-line growth for the company.
Here's why it is a good idea to invest $10,000 in this stock
TSMC's dominant position in the foundry market, the secular growth of this space, and the price hikes that it is on track to implement explain why the company's earnings are poised to increase at a nice pace through 2028.
TSM EPS Estimates for Current Fiscal Year data by YCharts
According to the chart above, TSMC's earnings could jump by 34% next year and by 27% in 2028. For comparison, its earnings are projected to jump by 64% this year. However, don't be surprised to see TSMC's earnings per share (EPS) growth outpacing the market's expectations in the future. Analysts have already raised their long-term EPS growth estimates and may become more bullish given the factors discussed above.
TSM EPS LT Growth Estimates data by YCharts
Assuming TSMC's earnings increase by 40% a year in 2029 and 2030, its EPS could jump to $58.45 by the end of the decade (using 2028's projected EPS of $29.82 as the base). If this semiconductor stock trades at even 19 times earnings at that time, in line with the S&P 500index's forward earnings multiple, its price could reach $1,110, implying 153% upside.
So, a $10,000 investment in TSMC right now could be worth more than $25,000 by 2030, suggesting investors can still consider buying this semiconductor giant in anticipation of further gains.
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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Broadcom, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy .
Here's What a $10,000 Investment in TSMC Stock Will Be Worth by 2030 was originally published by The Motley Fool
