Taiwan Semiconductor Delivers 2,095% Gain Over 10 Years. Will It Continue To Outperform?

A decennary ago, Taiwan Semiconductor Manufacturing (NYSE: TSM) was respected but boring. It made chips for Apple, Qualcomm, and a agelong database of fabless designers, and the marketplace valued it similar a cyclical industrial. Then the node contention got serious. TSMC pulled distant from Samsung and Intel astatine 7nm, past 5nm, past 3nm, and the institution became the lone spot connected world that could reliably manufacture leading-edge silicon astatine scale.

The AI roar poured gasoline connected that lead. Today TSMC controls astir 72% of the planetary foundry marketplace and prints chips for NVIDIA, AMD, Apple, and Broadcom connected precocious nodes that are moving adjacent capacity. Management conscionable approved ~$31.28 cardinal successful superior appropriations for caller fabs and up to $20 cardinal for its Arizona subsidiary to diversify distant from Taiwan. Q1 2026 EPS came successful astatine $3.49, beating estimates by 8.39%, and quarterly gross grew 35.1% twelvemonth implicit year.

Your $1,000 Turned Into Nearly $22,000

Here is what $1,000 invested successful TSMC would look similar crossed 3 windows, utilizing split- and dividend-adjusted prices done June 3, 2026.

1-Year Return

• Initial Investment: $1,000

• Current Value: $2,236.50

• Total Return: 123.65%

• S&P 500 (same period): $1,265.30 (26.53%)

5-Year Return

• Initial Investment: $1,000

• Current Value: $3,969.20

• Total Return: 296.92%

• S&P 500 (same period): $1,784.80 (78.48%)

10-Year Return

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• Initial Investment: $1,000

• Current Value: $21,954.70

• Total Return: 2,095.47%

• S&P 500 (same period): $3,586.80 (258.68%)

The 10-year fig is the headline, but the way was bumpy. Anyone who bought successful 2016 sat done the 2018 commercialized warfare selloff, the 2022 China-Taiwan penetration scare that concisely chopped the banal successful half, and a sluggish 2023. The reward for holding done that sound is simply a banal that has outpaced the S&P 500 by a wide borderline implicit the decennary and again implicit the past year.

The Bull Case, With Conditions

Putting $1,000 into TSMC contiguous rests connected 2 beliefs: AI capex stays elevated done 2027, and Washington and Beijing support the Taiwan concern successful the grey zone. The setup is genuinely attractive. The banal trades astatine 28x guardant net with a PEG of 1.4, analysts exemplary 22.5% yearly net growth, and Q1 2026 EPS much than doubled from $1.48 successful Q2 2024.