By Danny Vena, CPA
Publication Date: 2026-02-16 08:02:00
Semiconductors are the foundation upon which technology is built, and this company is ringing the cash register.
There are currently 12 companies that are worth $1 trillion or more, but only three are members of the prestigious $3 trillion club (as of this writing): Nvidia at $4.4 trillion, Apple at $3.7 trillion, and Alphabet at $3.7 trillion.
I am convinced that Taiwan Semiconductor Manufacturing (TSM 0.47%), commonly called TSMC, is on the fast track to join this elite fraternity. As the world’s largest and most renowned semiconductor foundry, TSMC is a crucial player in the artificial intelligence (AI) and data center buildout, which is driving strong financial and operating results.
The company has a market capitalization of $1.9 trillion as I write this, so investors who buy TSMC right now could generate returns of 58% if it secures its membership in the $3 trillion club.
Image source: Getty Images.
Chips ahoy!
TSMC is billed as the world’s most advanced chip foundry and the world’s largest contract chipmaker. It has a 71% share of the global chip market and produces more than 90% of the most advanced semiconductors, so it’s well positioned to capitalize on the current boom.
Furthermore, no foundry is as technologically advanced as TSMC. That’s why its customers are among the most well-known companies in the world, including Nvidia, Advanced Micro Devices, Arm Holdings, and Apple, among others.
Smartphone chips once generated the lion’s share of TSMC’s revenue….
