Should I buy TSMC stock in 2025?

Why trust HelloSafe?

At HelloSafe, our expert has been monitoring TSMC’s performance for more than three years. Each month, hundreds of thousands of Canadians rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are provided for informational purposes and are not intended as investment advice. In line with our ethical guidelines, we have never been, and will never be, compensated by TSMC.

What is TSMC?

How much is TSMC stock?

The price of TSMC stock is rising this week. TSMC is currently trading at $172.72 USD, up $6.03 (+3.62%) in the past 24 hours and +4.62% over the week, reflecting strong market momentum.

With a market capitalization of $736.23 billion and a 3-month average daily volume of 17.39 million shares, TSMC remains a heavyweight in the global semiconductor sector. The stock sports a P/E ratio of 22.22, a forward dividend yield of 1.59%, and a beta of 1.31, indicating modest income opportunities with above-average volatility.

Investors should keep an eye on its dynamic performance, as both rapid sector growth and market swings can create opportunities and risks.

Our full analysis on TSMC stock

We have conducted an exhaustive review of Taiwan Semiconductor Manufacturing Company’s (TSMC) latest quarterly financial results and analyzed the stock’s remarkable journey over the last three years. By integrating multiple streams of intelligence—including quantitative financial indicators, technical signals, granular market data, and competitive analytics—our proprietary algorithms have synthesized a clear view of its positioning. So, why might TSMC once again represent a strategic entry point into the global semiconductor sector in 2025?

Recent Performance and Market Context

TSMC continues to command the spotlight as the world’s dominant pure-play semiconductor foundry, a position underscored by its stock’s resilient performance in the face of global market turbulence. As of May 2, 2025, TSMC (NYSE: TSM) trades at $172.72, reflecting a robust +28% gain year-over-year despite a temporary pullback of -10.5% over the prior six months. This positive annual trajectory signals sustained investor confidence and positions the company favorably compared to sector peers.

Recent weeks have been marked by an impressive price rebound, with the stock rising 4.62% over the past week and surging 3.6% just in the latest session. These moves come on the heels of several notable company milestones—including an earnings release that soundly beat market expectations and a string of capacity expansion announcements in the United States, Japan, and Europe—that underscore TSMC’s operational agility.

Macro conditions have also improved for the global technology supply chain, with stabilizing inflation prints and renewed tech hardware demand, especially in areas tied to artificial intelligence (AI), high-performance computing, and automotive electronics. The sector’s cyclical rebound is evident, reinforced by TSMC’s industry-leading growth guidance (mid-20% revenue growth for 2025) and broad-based analyst optimism.

Technical Analysis

A closer examination of TSMC's technical profile reveals a stock at the onset of renewed bullish momentum. Key technical indicators support this constructive view:

• RSI (14 days): At 66, the stock approaches overbought territory yet remains in a bullish zone, consistent with a strengthening uptrend.
• MACD: With a positive reading of 2.6, MACD signals continued upside momentum.
• Moving Averages: The price sits well above both the 20-day ($168) and 50-day ($163) moving averages—confirming near- and medium-term bullish trends—yet remains below the 100-day ($179.5) and 200-day ($188.5) averages, reflecting residual long-term consolidation and setting the stage for further breakouts as sentiment shifts.
• Support and Resistance: The established support around $141.37 represents a strong technical floor, while the $223.74 level stands as the next major resistance—coinciding with both prior highs and analysts’ consensus price targets.
• Death Cross: Notably, a “death cross” (50-day MA below 200-day MA) was recently triggered, often signaling caution. However, recent price strength and the string of bullish events have historically signaled reversals from such setups, and the current upward momentum is likely to invalidate the lingering long-term bearishness.

Short- to medium-term momentum is therefore decisively on the upswing, and technical structure suggests the stock is entering a new accumulation phase—an environment often preceding powerful moves higher.

Fundamental Analysis

TSMC’s fundamentals are outstanding and continue to set industry benchmarks:

• Revenue and Profitability: For Q1 2025, revenue soared to $25.53 billion (+35.3% YoY), while net income climbed an extraordinary 60.3% YoY to NT$361.56 billion. These figures not only exceeded analyst expectations but also demonstrated operational excellence amid supply chain and geopolitical headwinds.
• Margins: Gross margin remains a stellar 58.8%, with an operating margin of 48.5%—figures rarely matched in global manufacturing and indicative of structural pricing power.
• Valuation: At a P/E of 22.2, TSMC’s valuation is highly attractive given its superior earnings growth, unmatched R&D leadership, and peer-beating operational metrics. The PEG and price-to-sales ratios remain below those of major U.S. semiconductor players, giving further comfort that the stock is not “priced for perfection.”
• Dividend: A forward yield of 1.59% combined with a well-covered payout reflects TSMC’s commitment to shareholder returns, a rare combination with high growth.
• Innovation and Structural Strengths:
• First-mover in 3nm process technology commercial volumes.
• More than 60% global foundry market share.
• Critical supplier to industry titans—Apple, Nvidia, AMD, and Qualcomm.
• Reinforced by a strong brand, robust governance, and strategic government backing.

These fundamentals justify renewed market interest and indicate the company’s continued structural advantages in a capital-intensive, innovation-driven sector.

Volume and Liquidity

One of TSMC’s underappreciated strengths is its deep trading liquidity. The three-month average daily volume stands at 17.39 million shares on the NYSE alone, a testament to wide institutional and retail participation and underscoring market confidence. This volume not only ensures tight bid-ask spreads and ease of execution but also reflects a float conducive to price discovery and dynamic valuation.

For Canadian and global investors, such liquidity ensures efficient market entry and exit, a critical factor in portfolio allocation decisions. The robust volume patterns, coupled with a $736 billion market capitalization, further reinforce TSMC’s standing as a core holding within the technology universe.

Catalysts and Positive Outlook

Fresh upside catalysts have emerged rapidly for TSMC, setting the stage for future outperformance:

• AI-Driven Demand: Management anticipates revenue from AI accelerators will double in 2025, propelled by the generative AI wave and high-performance computing upgrading cycles. TSMC remains the prime beneficiary of surging demand from hyperscale data centers and consumer device innovation.
• Strategic Global Expansion: Construction of a third fab in Arizona, U.S. and the opening of a new Kumamoto, Japan plant—paired with upcoming expansion in Dresden, Germany—speak to a derisked global production footprint just as Western governments prioritize semiconductor self-sufficiency.
• Innovation Leadership: The ongoing ramp in 3nm and 5nm process node utilization is driving higher ASPs and margin expansion, ensuring TSMC retains the technological high ground.
• ESG and Regulatory Tailwinds: These developments are increasingly positive, with TSMC’s commitment to sustainable manufacturing and governance helping attract capital aligned with ESG mandates. Meanwhile, the company benefits from government incentives for advanced manufacturing in North America and Asia.
• Analyst Upgrades: Recent earnings’ beats and management’s confident guidance have prompted fresh analyst upgrades, with a new consensus price target of $222.07—roughly 30% above current levels.

The combination of fundamental, technical, and thematic drivers presents an upwardly skewed risk/reward profile for the stock as the semiconductor cycle strengthens into 2025.

Investment Strategies

Given the breadth of current and prospective growth catalysts, TSMC’s stock opens up several pragmatic investment approaches:

• Short-Term Entry: The recent price momentum following Q1 results and optimistic Q2 guidance provide fertile ground for tactical positions anticipating continued strength towards the next earnings update or key facility opening announcements.
• Medium-Term Positioning: Investors seeking to capitalize on mid-2025 AI-driven tailwinds, along with the company’s expansion into new geographies, may find this period ideal for accumulation. Entry near recent support ($141–$155) offers a compelling risk-adjusted setup; however, current levels remain structurally justified.
• Long-Term Allocation: For those with a multi-year horizon, TSMC’s market dominance, unparalleled MOAT in advanced lithography, and attractive valuation offer a rare blend of defensive and offensive attributes. The stock’s ability to weather cyclical downturns and emerge stronger cements its place as an anchor in technology or growth-oriented portfolios.

While past “death cross” events and temporary price weakness have offered buying windows, the stock’s recent technical reversal and robust fundamentals strongly suggest the opportunity to enter ahead of a potentially sustained bullish phase.

Is It the Right Time to Buy TSMC?

TSMC currently combines a rare constellation of strengths: accelerating top- and bottom-line growth, innovation leadership in the most coveted process technologies, an expanding global footprint, and a highly favorable technical set-up. The stock’s 28% annual gain, emboldened by a renewed AI investment cycle and upcoming expansion milestones, gives confidence that further upside is realistic. With analyst price targets notably above current levels and Q2 guidance already exceeding expectations, renewed investor interest seems fully justified.

In sum, TSMC stands out as a resilient market leader primed for further value creation as global demand for advanced semiconductors intensifies. For investors seeking exposure to a technology cornerstone with both short-term momentum and profound long-term potential, TSMC seems to represent an excellent opportunity at this juncture—one where the fundamentals, technicals, and strategic positioning all align for possible outperformance moving into 2025 and beyond.

TSMC exemplifies how operational excellence, innovation, and global strategy can converge to generate lasting value—an opportunity few technology equities can credibly match.

How to buy TSMC stock in Canada?

Buying TSMC shares online is both straightforward and secure for Canadian investors, especially when using a regulated broker. Whether you want to own the shares directly (spot buying) or trade on price movements without owning the shares via CFDs (Contracts for Difference), both methods can be managed entirely through a trusted online platform. Spot buying allows you to benefit from actual share ownership, while trading via CFDs offers greater flexibility and leverage. To find the most cost-effective and reliable broker suited to your needs, consult our detailed broker comparison further down the page.

Spot buying

A spot, or cash, purchase means you’re directly buying and owning TSMC shares in your account, benefiting from both potential price increases and any dividends paid. Most Canadian brokers charge a fixed commission per order, generally ranging from $5 to $10 CAD (though some discount brokers may offer lower fees).

Example

For example, if TSMC’s share price is $172.72 USD (about $237 CAD at current exchange rates), with a $1,000 CAD investment and a $5 commission, you could buy around 4 shares (after accounting for currency conversion and fees).

Gain scenario: If the share price rises by 10%, your position is now worth $1,100 CAD (gross), resulting in a gain of +$100, or +10% on your invested amount—excluding any currency effects.

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on TSMC’s share price without taking ownership. Instead, you open a leveraged contract mirroring the underlying asset’s price movements. CFD trading typically involves a “spread” (the small difference between buy and sell price) and, if you hold positions overnight, an additional financing cost. With a $1,000 CAD stake and 5x leverage, you can open a position equivalent to $5,000 CAD exposure.

Example

Gain scenario: If TSMC’s share price rises by 8%, your CFD position increases by 8% × 5 = 40%. That’s a $400 gain on your $1,000 investment (excluding possible spread and overnight costs).

Final advice

Before buying TSMC stock, it’s essential to compare brokers’ fees, support, and access to international markets. Both spot buying and CFD trading offer unique benefits: direct ownership is suited to long-term investors seeking dividends and security, while CFDs offer flexibility and leverage for those comfortable with higher risks. Ultimately, your choice should depend on your investment strategy and financial goals—don’t forget to review our full broker comparison below for tailored solutions.

Platforms

Minimum Deposit

Discover

#1

Tier 1 regulation, including ASIC and FSA

#1

Star Trader

4.9

Minimum Deposit

$50

Discover

with our partner Star Trader

#2

Broker specializing in Forex and CFDs

#2

IFC Markets

4.8

Minimum Deposit

$1

Discover

with our partner IFC Markets

#3

Broker regulated since 2006

#3

Avatrade

4.8

Minimum Deposit

$100

Discover

with our partner Avatrade

Our 7 tips for buying TSMC stock

The latest news about TSMC

TSMC’s Q1 2025 earnings surpassed analyst expectations, highlighting robust demand for advanced chips and fueling positive price momentum.

Released on April 17, 2025, TSMC’s financial results reported a revenue of $25.53 billion, an impressive 35.3% increase year-over-year, with net income up 60.3%. Earnings per share reached $2.12, outpacing estimates, largely attributed to strong uptake in 3nm and 5nm technologies—segments vital to electronics and AI industries. The upbeat results have pushed the stock up 4.62% over the past week, signaling renewed investor confidence. This performance is particularly relevant for Canadian analysts, as TSMC is a key supplier for major technology players, including those with substantial Canadian consumer and business footprints, notably driving innovation in sectors heavily represented in Canada such as artificial intelligence, mobility, and communications.

The construction of TSMC’s third Arizona fab demonstrates accelerated North American expansion and supply chain resilience, benefiting Canadian downstream industries.

In the last week, TSMC confirmed progress on its third U.S. manufacturing facility, reinforcing its commitment to geographic diversification. This U.S. investment not only mitigates supply chain risks associated with geopolitical tensions in East Asia but also offers enhanced security of supply for North American tech stakeholders. For Canadian companies reliant on leading-edge semiconductors—including automotive, aerospace, and clean-tech manufacturers—a more localized supply source from TSMC’s U.S. fabs promises improved access, faster innovation cycles, and potential cost efficiencies, positioning Canada to better weather global chip shortages or disruptions.

TSMC raised its full-year revenue forecast for 2025 close to mid-20% growth, largely on surging AI demand—directly strengthening its outlook for global investors.

During recent earnings commentary, TSMC signaled that AI-related demand will be a core growth driver, forecasting Q2 2025 revenues between $28.4 and $29.2 billion, which is well above consensus expectations. As Canadian companies and investment funds increase their exposure to AI-powered technologies, TSMC’s dominant market share and leadership in producing chips essential for data centers and cloud computing provides a strategic indirect benefit. Moreover, the sustained optimism from analysts—with a consensus price target representing a 30% upside—underlines the stock’s appeal for Canadian institutional and retail investors seeking forward-looking, high-growth international equities.

TSMC’s ongoing global expansion—including the launch of its Kumamoto, Japan fab and planned Dresden, Germany fab—further reduces geopolitical exposure and enhances supply stability for Canadian partners.

In response to increasing geopolitical complexities, TSMC has operationalized its Kumamoto facility alongside Western partners and advanced plans for a German manufacturing site. These moves diversify its operating footprint beyond Taiwan, decreasing single-region risk and strengthening its status as a truly global foundry partner. For Canadian technology firms and multinational enterprises operating locally, these developments support more stable and diversified supply chains, facilitating continued innovation and less vulnerability to trade or political disruptions.

Market sentiment has turned increasingly bullish over the past week, with technical indicators—such as RSI and MACD—pointing to renewed buying interest and momentum.

TSMC’s share price, currently trading above its 20- and 50-day moving averages and backed by a rising MACD, signals robust short- and medium-term momentum. With an RSI of 66, buying pressure is strong but not yet excessive, and analysts have reiterated positive outlooks, emphasizing upside potential. This technical strength, coupled with continued buy recommendations and new highs in daily average trading volume, has prompted increased attention from Canadian market participants seeking growth and diversification in the global technology sector.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.