TSMC Stock Price Predictions: Will TSMC's Share Price Triple by 2030?

TradingKey - Over the last three years, Taiwan Semiconductor Manufacturing (TSM) has cemented its position as the go-to supplier for the global chipmaking market and has been rewarded with a 379%-plus return on its stock price. 

Most large chip companies do not own their own factories but instead hire TSMC to make their chips based upon designs that these companies provide. TSMC operates very cutting-edge factories that utilize the latest technology processes that are both highly efficient from a power consumption perspective and have the capability of manufacturing very high-performance chips necessary to support both AI-related workloads and state-of-the-art consumer electronics. 

That is why TSMC is frequently chosen by the largest companies that design semiconductor devices, including Nvidia (NVDA), Apple (AAPL), and Broadcom (AVGO), as their primary source for chip fabrication services. 

TSMC’s broad customer base enables it to touch almost every area of chips and electronic devices sold today (PCs, smartphones, data center servers, automobiles, industrial equipment, gaming consoles, etc.) and therefore gain an almost insurmountable competitive advantage with respect to the number of chips it makes and sells compared to its nearest competitor.

What Will TSMC's Stock Price Be by 2030?

The expansion landscape is positive for TSMC Given IDC's most current estimates, total semiconductor sales will exceed $1.29 trillion by 2026. 

For reference, the AI server segment is projected to grow more than 4X from 2025 - 2030 (to nearly $450 billion by the end of the decade). 

As well, shipments of generative AI-enabled mobile devices (smartphones and PCs) will significantly increase within the next 5 years, and will require advanced processing power from chips to perform AI tasks locally. As the world's largest semiconductor foundry, TSMC is in a position to take advantage of a large share of this additional demand. 

TSMC expects its revenues generated from A.I. Accelerator Chips alone to grow at a compound annual growth rate (CAGR) of mid-high 50s through 2029, sustaining healthy top-line growth for many years to come.

An increasing number of analysts have developed more favorable expectations for TSMC's earnings prospects, with current consensus indicating compound earnings growth in excess of $10.65 per share as of December 2025, increasing at an approximately 33-percent compound annual growth rate (CAGR) between 2026 and 2028. Should the expected CAGR for growth moderate to 25 percent during 2029 and 2030, TSMC's earnings would be approaching $38.98 per share by the end of the decade. 

Multiplying TSMC's earnings projection by the Nasdaq-100's applied multiple of 34 would yield a 2030 price target of approximately $1,325 per share. 

This is nearly 3 1/3 times the current share price and indicates TSMC could once again provide investors with multibagger returns as demand for AI expands and TSMC's mix of advanced nodes remains in high demand. Additionally, TSMC's internal target for mid- to upper-50 percent AI accelerator revenue growth between now and 2029 supports this positive, albeit aggressive, outlook.

Financial Proof Points and What They Say About TSMC Stock

Right now, the company is doing well financially and there's nothing that indicates it will slow down for the foreseeable future. For the first quarter of 2026, TSMC's total revenues increased by $35 billion, an approximate 35% increase year-over-year and surpassing TSMC’s 2025 revenue growth rate of approximately 31%. Similarly, TSMC's comprehensive income increased to $20+ billion this quarter, which is approximately 60% greater than the previous year. TSMC's revenues are forecasted to continue to grow at 35% in 2026, which suggests that demand for their products remains strong in the near term.

Despite their financial results producing returns less than some of their large customers, including Nvidia, Apple and Broadcom, the market is taking notice of TSMC’s stock price, up approximately 120% during the last 12 months and price-to-earnings ratio, approximately 33x P/E, which is essentially the same as Apple's P/E (34x). Given that comprehensive income increased by 60% in the last quarter and 33% in 2025, an approximate 33x P/E does not appear excessive, which likely accounts for why investor demand has increased for TSMC stock.

What the Valuation Implies for Long-Term Investors

From the perspective of TSMC's growth profile, its current valuation seems appropriate compared to its growth. 

A price-to-earnings ratio of 33 times, on par with Apple's, is not overly aggressive given that TSMC reported 60% earnings growth in the quarter just ended and double-digit growth is expected through 2025. With TSMC having increased its stock price by 120% over the past year, investors seem to recognize these growth prospects; while TSMC will demonstrate significant upside to its 2030 earnings and valuation multiples when compared to other stocks, TSMC is clearly one of the top AI companies that investors often undervalue due to its leadership position in advanced nodes, exposure to most of the fastest growing semiconductor markets and continuous capacity expansion.