Can TSMC Stock Reach a $3 Trillion Valuation by 2029?

On 19 February 2026, Taiwan Semiconductor Manufacturing Company Limited (TSMC) was trading at $359.34, having fallen by 0.78 %. 

The company, which is a leading semiconductor manufacturing plant in the world, boasts an estimated market capitalization of about $1.865 trillion and controls roughly 70 % of the entire foundry market in the world hence supplying high-technology in semiconductors to leading companies like the Nvidia and AMD.

Growth Momentum  

In 2025, TSMC registered $122 billion in revenue, which was up by 36 % year on year. The fourth quarter quarterly revenue was $33.73 billion, up 25.5% year over year. The figure surpassed the Zacks Consensus Estimate by 1.4%.

In January 2026, revenue increased by 37%, which is one of the positive signs of the permanent necessity of AI hardware. 

Path to $3 Trillion  

The company management forecasts a growth of 25% per year up to 2029, on the basis of existing marginal portfolios. Having forward price/earnings ratio at 26.4, the calculated share price estimate will be $543, above the current value and will increase the market capitalization to about $3 trillion. 

These capital investments will grow to $52-56 billion in 2026, an increment of 40% from 2025 to accommodate 2nm and 3nm production of chips in the framework of the envisaged expansion of the AI-server.

Future Outlook  

TSMC has a competitive edge that can be considered as substantial; however, the theory of the risks that this company may face, such as dilution by foreign plants that produce fabrics and geopolitics, should be mentioned. 

Regardless of these uncertainties, the forward-looking nature of the firm is clearly measured, and it will probably undervalue the long-term potential of the AI industry. Even further studies reveal that revenues could be higher than those currently projected upon solving the manufacturing constraints. 

The developments would greatly enhance the valuation of the company in the long run thus rewarding investors who have now placed themselves in an AI-powered business.