TSMC’s stock price has risen by 35% this year, and foreign media estimate that there is still 22% room for growth before the end of 2026.
Due to its large market share and AI infrastructure development, Taiwanese media are looking at the potential for a significant increase in its shares by the end of 2026.
Quick Look
- TSMC’s stock price has performed strongly in 2026 and has risen by 35%.
- Foreign media The Motley Fool reported that thanks to the booming development of AI infrastructure and high market share, TSMC’s stock price is expected to rise by another 22% from the current level by the end of 2026, reaching a record high.
AI-generated summary
Why It Matters
Taipei Electric is the world's leading manufacturer of logical crystal transducers, with most large technology companies producing crystals.
Since 2026, TSMC’s stock price has performed strongly, rising by about 35% so far, while the U.S. Nasdaq Index has only increased by 14% during the same period. Foreign media The Motley reported that TSMC's stock price still has a lot of room to rise. By the end of 2026, the stock price is expected to rise another 22% from current levels.
TSMC's stock price is likely to rise significantly in the short term, and the stock will start to rise once investors digest the expected trend in 2027. With the stock currently down more than 10% from its all-time high, now is an excellent time to buy. TSMC is the world's leading logic chip foundry, and almost all major technology companies rely on its chip manufacturing services.
TSMC occupies a huge market share with many important customers. According to TrendForce data compiled by The Motley Fool, TSMC's revenue share in the third-party foundry market will exceed 70% by the end of 2025. This puts it in a good position to take advantage of upcoming opportunities next year.
During Huida's second-quarter earnings conference call, management noted that they expect the five largest artificial intelligence hyperscale data center operators to invest approximately $1.3 trillion in data center capital expenditures next year. Actual capital expenditures are likely to be much higher, as there are other large players not included in this total. Companies including Huida, Apple, and AMD are expected to invest nearly US$800 billion in 2026.
Artificial intelligence infrastructure is clearly booming, and TSMC is well-positioned to benefit from it as it produces the vast majority of the chips used in data center computing units. However, TSMC's current share price does not reflect these growth.
At the end of each year, TSMC's expected price-to-earnings ratio often reaches a peak of about 30 times. To reach this level again at the end of 2026, the stock price needs to rise by about 22%, setting a record high, and TSMC's stock price already has such potential.
What to Watch
AI outlook — possibilities, not facts
Stock prices are expected to rise 22% from current levels by the end of 2026
Likely · Within months
Open Questions
- Will real capital spending grow as expected in 2027?
- Can the price-to-earnings ratio successfully reach a peak of 30 times?
