Meet the Super Semiconductor Stock That Isn’t Nvidia, AMD, or Broadcom | The Motley Fool

When investors think about semiconductor stocks, Nvidia, Advanced Micro Devices, and Broadcom usually get most of the attention. But all these companies rely heavily on one company to manufacture their chips, and that is Taiwan Semiconductor Manufacturing (TSM +3.69%).

TSMC, as it’s also known, is the largest pure-play foundry, controlling over 70% of the global market. The global foundry market is currently worth nearly $185 billion and is expected to grow to around $360.5 billion by 2036.

Since Taiwan Semiconductor manufactures chips for many designers and technology giants, it benefits from the explosive industrywide demand for cutting-edge chips and is not reliant on any single company or technology.

Powering the AI boom

TSMC’s competitive position looks exceptionally strong. In 2025, 3-nanometer chips contributed 24% of its wafer revenue, while 5-nanometer and 7-nanometer chips accounted for 36% and 14% of the wafer revenue, respectively. Overall, advanced technologies of 7-nanometer and below accounted for 74% of total wafer revenue. Additionally, TSMC also commenced mass production of the 2-nanometer chips in late 2025.

Taiwan Semiconductor Manufacturing

Today’s Change

(3.69%) $12.16

Current Price

$341.40

Key Data Points

Market Cap

$1.7T

Day’s Range

$331.19 – $341.40

52wk Range

$134.25 – $390.20

Volume

369K

Avg Vol

13M

Gross Margin

58.73%

Dividend Yield

1.02%

This dominance is important, as artificial intelligence (AI) and high-performance computing…