TSMC's Market Value Hits $1 Trillion on Optimism Over AI Demand

Taiwan Semiconductor Manufacturing Co. (TSMC) has reached a market value of $1 trillion, driven by a raised outlook and optimism over robust artificial intelligence demand. The company's shares have surged by nearly 50% since April, and its market capitalization now rivals Berkshire Hathaway Inc.'s. TSMC's stock surge reflects growing investor confidence in the company's ability to benefit from the AI boom and the tightening race for AI manufacturing capacity.

Taiwan Semiconductor Manufacturing Co. (TSMC) has achieved a significant milestone, joining the elite club of companies valued at $1 trillion. The semiconductor giant's market capitalization reached this threshold on July 17, 2025, driven by robust financial performance and optimism over the artificial intelligence (AI) boom.

TSMC's second-quarter earnings report, released on July 17, 2025, highlighted the company's strong financial performance. The company reported a net income surge of 61% year-over-year to NT$398.3 billion, exceeding the consensus estimate of NT$378.1 billion [2]. Revenue for the quarter jumped 39% to NT$933.2 billion, with high-performance computing, which includes AI and 5G applications, contributing 60% of revenue [2].

The company's shares have surged by nearly 50% since April, reflecting growing investor confidence in its ability to capitalize on the AI boom and the tightening race for AI manufacturing capacity [4]. TSMC's market capitalization now rivals that of Berkshire Hathaway Inc., making it the world's 9th most valuable company by market cap [1].

TSMC's CEO, C.C. Wei, acknowledged the potential impact of tariffs on the industry but remained optimistic about the strong demand for AI chips. The company expects its full-year 2025 revenue to rise by around 30% in U.S. dollar terms, supported by growth in AI and advanced technologies [3].

Looking ahead, TSMC's leading position in the semiconductor industry, controlling nearly 67% of semiconductor manufacturing, provides it with significant pricing power [4]. Additionally, being the first to introduce the third-party foundry model grants TSMC dominance in the chip foundry sector.

References:
[1] https://companiesmarketcap.com/tsmc/marketcap/
[2] https://www.morningstar.com/news/marketwatch/20250717198/taiwan-semi-joins-the-1-trillion-club-after-profit-beat-hiked-sales-outlook
[3] https://www.cnbc.com/2025/07/17/tsmcs-second-quarter-profit-soars-nearly-61percent-as-ai-chip-demand-stays-strong-.html
[4] https://www.nasdaq.com/articles/3-reasons-buy-tsmc-stock-besides-61-q2-profit-surge