Key Points
Taiwan Semiconductor reported robust growth in 2025.
AI was a major growth driver, and it expects that to continue.
Taiwan Semiconductor (NYSE: TSM) has been in the news lately for opening a new plant in the U.S. and signing a deal with the Trump administration to invest $250 billion in further developing its U.S. operations. The company also just released a phenomenal fourth-quarter report that signals even more growth ahead.
If you had decided to buy into the company's growth story a year ago, you'd have a lot more money today.
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Image source: Taiwan Semiconductor.
AI growth is Taiwan Semiconductor growth
AI has been a major market driver over the past few years, and it doesn't look like it's slowing down anytime soon. Taiwan Semiconductor supports this growth by manufacturing the semiconductors that make all of this innovation happen, and it reported fabulous growth last year, with a 36% increase in sales and a 51% operating margin.
If you'd invested $10,000 a year ago in Taiwan Semiconductor stock, you'd have $15,000 now. Even better, the opportunity is far from over. Management envisions a period of high opportunity coming up, and it's raising its capital expenditures to meet the expected rising demand.
Even though you may have missed the past year's gains, you haven't missed the boat, and you can still buy into Taiwan Semiconductor's ongoing story by investing in the stock today.
Should you buy stock in Taiwan Semiconductor Manufacturing right now?
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Jennifer Saibil has positions in Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.