Should I buy Taiwan Semiconductor Manufacturing Company stock in 2025?

What is Taiwan Semiconductor Manufacturing Company?

How much is Taiwan Semiconductor Manufacturing Company stock?

The price of Taiwan Semiconductor Manufacturing Company stock is rising this week. As of now, TSMC shares are trading at $191.98, up 1.94% over the past 24 hours and showing a 3.6% gain for the week. With a market capitalization of $995.70 billion and a strong average volume of 17.25 million shares in the last three months, TSMC remains a market heavyweight. The stock currently posts a P/E ratio of 23.12, a dividend yield of 1.71%, and a beta of 1.32. Given its global leadership in semiconductors and robust financials, TSMC offers both stability and growth potential for PH investors, while still reflecting moderate volatility.

Our full analysis on Taiwan Semiconductor Manufacturing Company stock

Having thoroughly assessed the latest quarterly results of Taiwan Semiconductor Manufacturing Company (TSMC), alongside the stock’s notable outperformance over the past three years, we have integrated multi-source analysis—including robust financial metrics, technical signals, peer comparisons, and market dynamics—processed through our proprietary algorithms. TSMC stands out in both fundamental strength and bullish technical momentum, especially as AI and high-performance computing reshape the semiconductor landscape. So, why might the coming quarters see TSMC stock evolve into a fresh strategic entry point into global technology and AI supply chains as we move through 2025?

Recent Performance and Market Context

TSMC’s share price currently sits at $191.98 (as of May 27, 2025), translating to an extraordinary 42.9% gain over the past 12 months and a robust 20.4% rally over just the last six months. Even in the past week, the stock has tacked on a solid 3.6%, propelled by heightened optimism around earnings and the accelerating adoption of advanced semiconductor nodes.

Several tailwinds are driving this exceptional performance:

• Record Financials: First-quarter revenue soared by 41.6% year-over-year, with net income surging over 60%, outpacing consensus estimates.
• AI Momentum: Explosive growth in AI applications and high-performance computing (HPC) is fueling global semiconductor demand, with TSMC at the supply chain’s core.
• Sector Leadership: As the world’s largest dedicated foundry, TSMC’s market positioning is unmatched, securing supplier relationships with technology behemoths such as Apple, NVIDIA, and AMD.
• Favorable Macro Trends: The ongoing trend of digital transformation, rising AI chip deployment, and global 5G rollouts all create a powerful sector backdrop that is materially supportive for leading semiconductor players.

Against this context, TSMC’s superior execution and relentless innovation make its recent outperformance seem far from a temporary phenomenon. For investors in the Philippines seeking credible global tech exposure, this is highly noteworthy, particularly given the growing importance of semiconductors in local and regional technology sectors.

Technical Analysis

TSMC’s technical picture is distinctly constructive, with several indicators pointing toward continued upside potential:

• Momentum Indicators: The Relative Strength Index (RSI) is at 62.24—moderately bullish, indicating robust demand yet not signaling overbought exhaustion. Meanwhile, the Moving Average Convergence Divergence (MACD) is at a firmly positive 3.58, reinforcing a bullish trend.
• Moving Averages: Shares are holding comfortably above the 200-day moving average ($184.82) and are consolidating near the 50-day ($170.79)—this convergence typically precedes breakout moves.
• Support and Resistance: Recent price action has established strong support zones at $186, $188.83, and $190.41. Immediate resistance lies at $193.18 and $194.37, with a potential run to the $207 level should momentum persist.
• Trend Structure: The 50-day MA remains above the 200-day MA, a classic bullish signal. The formation of breakout patterns, combined with sustained volume, suggests the stock could be entering a new bullish phase in the coming weeks.

With the technical setup aligned favorably, TSMC’s chart profile seems to invite renewed interest, especially from traders and longer-term investors keen to capitalize on upward structural momentum.

Fundamental Analysis

TSMC’s fundamental narrative is defined by robust growth, market dominance, and financial discipline:

• Financial Results: Q1 2025 revenue climbed to $25.53 billion (+41.6% YoY), and net income reached $11.12 billion (+60.4% YoY), comfortably beating market expectations. Earnings per share (EPS) outperformed at $2.12 versus analysts’ anticipated $1.82.
• Margin Strength: Despite sequential margin compression, gross and operating margins are industry-leading at 58.8% and 48.5%, respectively.
• Forward Outlook: For Q2 2025, TSMC forecasts revenue growth to $28.4–$29.2 billion, targeting gross margins up to 59%. Such guidance, if delivered, would extend TSMC’s streak of superior top- and bottom-line expansion.
• Valuation Metrics: TSMC trades at a trailing P/E of 23.12 and a forward P/E of 19.92, with a PEG ratio of just 1.34—making its growth profile attractively priced compared to both sector averages and its major peers, many of which trade at notable premiums.
• Strategic Assets: TSMC’s process node leadership (3nm in high-volume production, 2nm rollout imminent), entrenched customer base, and innovation in chip packaging underpin a sustained competitive advantage.
• Structural Strength: With a roughly 60% share of the global foundry market and active investments in global capacity, TSMC’s industry position is unassailable, while its strong balance sheet supports both aggressive R&D and shareholder returns (1.71% dividend yield).

For Philippine investors familiar with the cyclical volatility in tech, TSMC’s balance of innovation, scale, and financial prudence offers a unique risk-reward profile—especially as AI and next-gen technologies transform industry fundamentals worldwide.

Volume and Liquidity

TSMC’s high trading liquidity further strengthens its investment appeal:

• Consistent Volumes: The stock boasts a 3-month average daily trading volume of 17.25 million shares, enabling efficient entry and exit, critical for both institutional and retail participants.
• Market Depth: With a free float of over 23 billion shares and strong institutional participation (16.39% ownership), TSMC remains subject to dynamic valuation flows—often an indicator of increasing global investor confidence.
• Price Discovery: This sustained liquidity not only fosters lower spreads but supports responsive price discovery, amplifying the impact of positive news, earnings surprises, or upward sector revisions.

Liquidity is an essential attribute for active investors, especially in fast-evolving global technology markets. TSMC’s deep pool provides the flexibility needed for timely and scalable portfolio allocation.

Catalysts and Positive Outlook

Looking ahead, several powerful catalysts could continue to drive TSMC’s value proposition higher:

• 2nm Node Launch: Volume production of TSMC’s 2nm process, incorporating nanosheet transistors, is expected to begin in late 2025—likely to unlock new performance levels for client products and set industry benchmarks.
• AI Megatrend: Intensifying demand for AI accelerators and high-performance computing chips, particularly from leading U.S. and Asian firms, is translating into unprecedented order visibility and pricing power.
• Global Expansion: Strategic investments in advanced fabs across the U.S., Japan, and Europe will increase geographic diversification while serving local demand—helping to reduce geopolitical dependencies.
• Advanced Packaging Solutions: Integrative technologies such as CoWoS (Chip-on-Wafer-on-Substrate) and SoIC (System on Integrated Chips) further differentiate TSMC from rivals, catering to growing client requirements for compact, power-efficient chips.
• ESG Initiatives: Progressive moves to decarbonize operations and implement resilient supply chains are increasingly valued by global investors and major clients, further enhancing TSMC’s standing.

Combined, these growth drivers reinforce TSMC’s multi-year roadmap, amplifying the fundamental argument for continued outperformance, even as traditional semiconductor cycles evolve.

Investment Strategies

Whether constructing a diversified technology portfolio or seeking alpha through targeted allocations, TSMC offers multiple compelling entry points:

• Short-Term Strategy (6–12 months):
• Recent technical breakout and price momentum, supported by upcoming Q2 earnings and anticipated revenue expansion, provide a clear short-term catalyst.
• Strong support at $186–$190.41 may represent attractive levels for tactical entry, ahead of further AI-driven demand updates.
• Medium-Term Perspective (12–24 months):
• With the 2nm node launch and global fab ramp-up on the horizon, the stock could benefit from multiple re-rating events across the next year.
• Potential for margin expansion as advanced nodes scale, plus the possibility of further dividend increases as cash flow remains robust.
• Long-Term Positioning (2–5 years):
• Secular trends—AI, IoT, autonomous systems, and 5G—are projected to accelerate semiconductor demand well beyond 2026.
• TSMC’s entrenched customer relationships and R&D pipeline suggest enduring leadership and dividend growth potential over the medium to long term.

In each scenario, establishing a position during periods of technical consolidation or prior to major catalyst events seems to represent an excellent opportunity for both risk-aware traders and growth-focused investors.

Is it the Right Time to Buy Taiwan Semiconductor Manufacturing Company?

The case for renewed interest in TSMC has rarely been stronger:

• Exceptional financial performance, including industry-leading revenue and profit growth
• Sustainable margins and disciplined capital allocation
• Reinforced technical trends and liquidity, highlighting ongoing market conviction
• Multi-year growth catalysts in high-value process technology and AI integration
• Attractive valuation relative to global tech leaders, coupled with a robust shareholder return profile

While macro and geopolitical uncertainties always warrant consideration, TSMC’s expanding global footprint, relentless innovation, and financial solidity position it among the most promising technology equities entering the second half of 2025. Investors exploring anchor positions in the rapidly evolving semiconductor and AI value chain would be well served to keep TSMC top of mind. Ultimately, the stock looks increasingly poised to usher in a new bullish phase, backed by both near-term catalysts and compelling structural growth prospects.

TSMC thus represents an opportunity that is difficult to ignore for any investor seeking global technology leadership, innovation, and sustained outperformance over the coming years.

How to buy Taiwan Semiconductor Manufacturing Company stock in the PH?

Buying Taiwan Semiconductor Manufacturing Company (TSMC) shares online from the Philippines is simple and secure when done through a regulated broker. You can choose between two main methods: traditional spot buying, where you directly own the shares, or trading contracts for difference (CFDs), which allow you to speculate on price movements with leverage. Both methods are available on most online platforms, and Filipino investors can access global stocks like TSMC in USD. To help you start confidently, you’ll find a comparison of top brokers and their fees further down this page.

Spot Buying

When you buy TSMC shares for cash, you are acquiring real shares in your name, typically through an international brokerage account. This means you benefit from price appreciation and dividend payments, minus the broker’s commission. For Philippine investors, common fees include a fixed commission per order, often around $5 (about ₱290), plus a minor currency conversion charge.

Example

Suppose TSMC’s share price is $191.98. With a $1,000 investment, and after deducting a standard $5 brokerage commission, you can purchase roughly 5 shares ($995 / $191.98 ≈ 5.18 shares).
✔️ Gain scenario: If the TSMC share price increases by 10%, your shares are now worth about $1,100.
Result: That’s a $100 gross gain, a +10% return on your original investment.

Trading via CFD

CFDs (Contracts for Difference) let you speculate on TSMC’s price without actually owning the shares. You can use leverage—borrowed funds—so your market exposure is several times bigger than your deposited amount. For TSMC, brokers typically charge a spread (the small difference between buy and sell prices) and overnight financing fees if you hold positions longer than a day.

Example

You open a CFD position on TSMC with $1,000 using 5x leverage, giving you exposure worth $5,000.
✔️ Gain scenario: If TSMC stock rises by 8%, your position gains 8% × 5 = 40%.
Result: You earn a $400 profit on your $1,000 bet (excluding fees and interest costs).

Final Advice

Before investing, always compare brokers for their commissions, spreads, platforms, and extra features. A full comparison is available below to help you choose the best match for your needs. Remember, cash buying suits those who wish to directly own shares and receive dividends, while CFD trading is for more active investors comfortable with leverage and higher short-term risks. Take your time, define your goals, and choose the method that aligns best with your investment strategy.

Our 7 tips for buying Taiwan Semiconductor Manufacturing Company stock

The latest news about Taiwan Semiconductor Manufacturing Company

TSMC stock posted a 3.6% gain this week, reflecting robust investor confidence and bullish technical signals. The company’s share price reached $191.98 on the NYSE, buoyed by a positive 1.94% intraday change and strong momentum indicators such as an RSI of 62.24 and MACD at 3.58, both pointing to continued upward movement. Notably, the stock is trading close to its 50-day moving average, further supporting the bullish technical outlook and positioning TSMC for potential new highs, especially relevant for Philippine investors with exposure through local and regional index-tracking funds.

TSMC reported exceptional Q1 2025 results with net income up 60.4% year-over-year and EPS beating estimates. Revenue reached $25.53 billion, a 41.6% annual increase, underscoring the surge in demand for leading-edge chips, particularly for AI and high-performance computing applications. These results, coupled with management’s Q2 guidance targeting up to $29.2 billion in revenue, signal accelerating growth. Such strong financial performance drives optimistic sentiment among Southeast Asian investors, given the integral role of TSMC-processed chips in electronics and devices popular in the Philippines.

Major advances in TSMC’s technology roadmap—especially ramping production of 3nm and impending 2nm nodes— reinforce its long-term competitive edge. Innovations like nanosheet transistor technology set for volume production in 2025 are key differentiators that maintain TSMC’s industry leadership. As Philippine information technology and electronics firms continue to incorporate AI and smart device capabilities utilizing TSMC-fabricated components, this sustained innovation cycle ensures a reliable supply chain and strengthens the regional semiconductor value network.

TSMC’s expanding global presence and supply chain resilience are strategically relevant to the Philippine market’s stability concerns. By growing manufacturing capacity in the United States, Japan, and Europe, TSMC is actively mitigating geopolitical risks associated with its Taiwan-centric operations. This increased footprint secures production continuity, crucial for Filipino firms that rely on supply predictability for consumer electronics, automotive, and telco sectors, supporting long-term market stability and investment appeal.

Analyst consensus projects a 16.5% stock price upside, supported by fair forward valuation and increased dividend yield. At a forward P/E of 19.92 and a dividend yield of 1.71%, TSMC offers a compelling value proposition compared to many AI-focused tech companies. Analysts anticipate roughly 25% revenue growth this year, reflecting both persistent AI-driven demand and TSMC’s structural positioning. For Philippine investors, these metrics strengthen the case for TSMC as a foundational allocation in regional and global equity portfolios, with positive implications for local index performance and diversified fund strategies.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.