Prediction: $1,000 Invested in Taiwan Semiconductor (TSMC) Today Will Be Worth This Much by the End of the Decade

Taiwan Semiconductor Manufacturing (NYSE: TSM) is one of the most important companies in the tech world, and over the past decade, its stock has been one of the best performing. It has considerably outperformed Apple, Microsoft, Amazon, Alphabet, and Meta Platforms over that period.

That said, investing is all about the future, so what might the next few years look like for TSMC's stock? While nobody can predict for certain how a stock will perform, I wouldn't be surprised if a $1,000 investment in TSMC today was worth $1,750 to $2,000 by the end of the decade. Let's take a look at why.

Why TSMC is so important to the tech world

Almost all electronics you use daily contain semiconductor chips. While companies like Apple, Microsoft, Nvidia, and others design the chips used in their products, they don't manufacture them in-house. They outsource that to foundries, and TSMC is the No. 1 company bringing those designs to life.

Manufacturing high-end processing chips requires huge investments into specialized factories and equipment, as well as a degree of expertise that comes only with time, so it's much easier for tech companies to pay TSMC for its capabilities than to try to build their own foundries.

TSMC has a market share of around 73% in the global third-party foundry market (up from 68% at the start of 2025), but for advanced chips, its market share is well into the upper-90% range. That isn't by chance. TSMC is regarded as the gold standard in chip manufacturing, which is why it's the go-to partner for virtually all major tech companies.

Could TSMC's stock really double in a few years?

TSMC already boasts a market cap of over $2.1 trillion, and for a company of that size, doubling in value in roughly three years and three months would be unusually tough, but in this case, the premise is definitely not far-fetched. For illustration's sake, if we assume it finishes the year where it is now, it would need to average an annualized growth rate of around 26% for the next three years to double. For the more modest 75% growth that it would take to turn $1,000 into $1,750, it would need to average an annualized growth rate of around 20.5%.

For perspective, TSMC's stock is up 368% over the past three years and 255% over the past five years. And while past performance doesn't guarantee future results, TSMC's business is in a great spot.

Image source: The Motley Fool.

First, it directly benefits from the hundreds of billions of dollars that hyperscalers Amazon, Microsoft, Alphabet, and Meta are spending every year to build data centers and other AI infrastructure. Most of the advanced processors at the heart of those data centers are made by TSMC.

With TSMC sitting at the foundation of the broader AI boom, I can see it carrying its recent momentum over the next three years. Only time will tell how much a $1,000 investment will be worth at the end of this decade, but I can almost guarantee you won't regret making it.

Stefon Walters has positions in Apple, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.