Is TSMC stock a good buy for Singapore investors in 2025?

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At HelloSafe, our expert has been tracking the performance of TSMC for over three years. Every month, hundreds of thousands of users in Singapore trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by TSMC.

What is TSMC?

The Price of TSMC Stock

The price of TSMC stock is rising this week. As of now, TSMC is trading at USD 234.80, with a 24-hour increase of +0.51% and a strong weekly gain of +2.73%. The company’s market capitalization stands at USD 1.218 trillion, supported by an average 3-month volume of 14.88 million shares. Key financial metrics include a P/E ratio of 27.56, a current dividend yield of 1.45%, and a stock beta of 1.34. With its recent growth and robust market activity, TSMC offers both dynamic performance and notable investment potential for Singapore investors.

Our Full Analysis of TSMC Stock

We have carefully reviewed TSMC's latest financial results, along with its robust stock performance over the last three years. This analysis is based on a composite of quantitative indicators, technical patterns, updated market data, and a detailed comparison with peers, synthesised through our proprietary algorithms. So, why might TSMC stock once again become a strategic entry point into the semiconductor sector in 2025?

Recent performance and market context

Over the past twelve months, TSMC stock has delivered a remarkable total return of +28.66%, far outpacing its sector peers and signalling sustained investor confidence. During the last week alone, the share price advanced by 2.73%, with the most recent close at USD 234.80 and an intraday gain of 0.51%, situating the stock at the upper end of its 52-week trading range ($133.57–$237.58). This renewed momentum has been reinforced by consistently strong quarterly financials and news of major strategic investments.

On the corporate front, TSMC continues to make headlines with its expansion into the United States, committing an additional $165 billion to new fabrication facilities and directly supporting the creation of 40,000 construction jobs over the next four years. The unveiling of a joint research lab with the University of Tokyo in June 2025 further highlights TSMC’s commitment to global innovation and leadership.

Macroeconomically, the semiconductor sector is experiencing outsized demand driven by the ongoing AI and data-driven transformation of the global economy. TSMC, as the world’s largest and most advanced pure-play foundry, remains positioned at the heart of this secular growth trend. The company’s capitalisation, now exceeding $1.2 trillion, underlines the sheer scale and confidence of global investors.

Technical analysis

Technical indicators reinforce the bullish case for TSMC. The RSI (14 days) at 75.08 reflects a strong upward momentum, confirming a bullish sentiment without yet warning of dangerous overextension. The robust MACD of 9.40 further suggests that medium-term tailwinds are driving sustained price appreciation.

TSMC is trading well above its major moving averages: 20-day ($215.53), 50-day ($195.26), and 200-day ($189.47). This multi-timeframe alignment is typically associated with robust positive trends and provides technical support for new entries. The immediate support is firm at $233.27, while resistance is close at the current year’s high of $237.58. The stock’s performance above all key averages and technical support levels also indicates limited near-term downside and the potential for further acceleration should resistance break.

Momentum players should note that TSMC continues to trigger bullish reversal signals while operating in a tight, bullish structure—a technical configuration often associated with the early phase of major upward legs.

Fundamental analysis

From a fundamental standpoint, TSMC delivers a compelling growth and profitability narrative in 2025. Q1 revenue surged by 35.3% year-on-year to $25.53 billion, with net profit up an impressive 60% to $11.12 billion. This operational excellence lifted earnings per share above analyst expectations and highlights the scalability of TSMC’s model.

The current P/E ratio of 27.56 is both justified and attractive for a company with a projected 25% top-line growth rate and a dominant position in a critical sector. With a price-to-sales (TTM) of 11.34 and a price-to-book of 7.81, valuations appear reasonable relative to both historical averages and cutting-edge semiconductor peers. The company’s dividend yield of 1.45%, together with regular quarterly dividends, should appeal to yield-conscious investors without sacrificing growth.

TSMC’s structural strengths are numerous:

• Strict technological leadership in advanced-note production (now moving toward 2nm)
• An unrivaled global market share exceeding 60%, making it the de facto manufacturing backbone for giants like Apple, NVIDIA, and AMD
• A durable brand reputation for innovation, precision, and reliability
• Superior R&D capability, evidenced by the continued roll-out of breakthroughs and process improvements

The company’s geographic and supply chain diversification further underpin its resilience, with strategic moves in the US and joint ventures in Japan expanding its competitive moat.

Volume and liquidity

Trading volume continues to average 14.88 million shares per day (3-month average), providing ongoing liquidity and tightening bid-ask spreads—a signal of high institutional engagement and market confidence.

With 5.19 billion shares outstanding and most of the float widely distributed among large global asset managers, the stock’s liquidity profile remains highly favourable. This depth of market ensures that both large and small investors can execute trades efficiently, reducing the risks and costs traditionally associated with lower-liquidity securities.

Catalysts and positive outlook

TSMC’s pipeline of bullish catalysts is especially robust heading into the second half of 2025, including:

• The anticipated demand surge for AI-dedicated chipsets, where TSMC’s clients are launching new product cycles
• The inauguration of the world’s first 2nm manufacturing process, confirming ongoing pricing power and technological leadership
• A rapidly expanding US footprint, projected to secure strategic supply chains while attracting further government backing
• Deepening academic and industry partnerships (as with UTokyo, Apple, and major automakers), creating additional revenue channels
• Enhanced ESG profile with net-zero targets and sustainable manufacturing initiatives likely to attract further capital from ESG-focused funds

Sector-wide, the combination of increased regulatory clarity, state-driven innovation incentives, and global consumption trends supporting digitisation continue to provide a strong bullish context for TSMC. Few global companies are as closely aligned to the world’s “next big wave” of AI, data, and advanced computing hardware.

Investment strategies

Several entry strategies appear attractive at current levels:

• Short-term traders may look to capitalise on the strong technical structure and momentum, aiming for breakouts above $237.58 or re-entries on retracements to the $233.27 support.
• Medium-term investors can anchor their position ahead of major catalysts—such as Q2 earnings or news on 2nm commercialisation—that may lead to upward price revisions and analyst upgrades.
• Long-term holders can justify positions based on TSMC’s resilient cash flow, leadership in a growth sector, and its proven ability to outperform across market cycles.

For all profiles, the current level—near technical support and before substantial upcoming catalysts—seems to represent an opportune positioning for entry. Active risk management (for example, with stop-losses just below the $230 level) can help mitigate volatility.

Is it the right time to buy TSMC?

In sum, TSMC today combines robust upward technical signals, rapid fundamental growth, deep liquidity, and a world-leading innovation engine. The stock’s consistent outperformance, coupled with a lineup of powerful bullish catalysts, justifies renewed investor interest. Although sector risks persist, TSMC’s multi-dimensional strengths and high-quality execution suggest it may soon enter a new phase of leadership within the global semiconductor sector.

For Singapore-based investors seeking exposure to one of the world’s most dynamic and systemically important tech companies, TSMC seems to represent an excellent opportunity at current prices. With strong catalysts on the horizon and an industry-defining role in the global technology landscape, TSMC stands out as a strategic buy candidate for 2025 and beyond.

TSMC continues to capture the essence of innovation, scale, and resilience—offering investors a premium gateway to participate in the secular growth of advanced semiconductors and AI-centric global industries.

How to buy TSMC stock in Singapore?

Buying TSMC stock online is both simple and secure for investors in Singapore. You can purchase TSMC shares through a regulated broker either by spot buying—acquiring the physical shares directly—or via CFDs (Contracts for Difference), which let you speculate on price movements without owning the underlying asset. Both methods are accessible through licensed online platforms, giving you full transparency and control over your investment. For a closer look at the top options available, a detailed broker comparison is provided further down the page.

Spot buying

A cash purchase of TSMC stock means you own the actual shares outright. Typically, brokers in Singapore charge a fixed commission per order, usually around SGD 5–10. You become a direct shareholder, benefitting from any price increases and potential dividends.

Gain scenario

If the TSMC share price is $234.80 USD, you can buy around 4 shares with a $1,000 stake, including a brokerage fee of around $5.

If the share price rises by 10%, your shares are now worth $1,100.

Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading on TSMC shares allows you to speculate on future price movements without buying the actual shares. Fees for CFDs include a spread (the difference between bid and ask prices) and overnight financing costs if you keep your position open overnight. CFD trading also enables the use of leverage, amplifying both potential gains and losses.

CFD Position with Leverage: Gain Scenario

You open a CFD position on TSMC shares, with 5x leverage.

This gives you a market exposure of $5,000.

✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +$400 gain, on a bet of $1,000 (excluding fees).

Final advice

Before investing, always compare the fees, features, and regulations of available brokers to find the best fit for your needs. The right method—spot buying or CFD trading—depends on your own risk appetite, investment objectives, and time horizon. Take your time to review the broker comparison further down the page.

Our 7 Tips for Buying TSMC Stock

The latest news about TSMC

TSMC stock reached a new all-time high of $237.58 this week, pushing year-to-date gains to 17.17%. This strong performance is driven by accelerating global demand for AI chips and robust Q1 revenues that exceeded analyst expectations, reinforcing investor optimism and supporting capital inflows from major institutional investors across Asia and Singapore.

TSMC announced a strategic partnership with a leading Southeast Asian tech group to enhance regional semiconductor supply chains. This agreement, officially disclosed five days ago, aims to secure advanced chip delivery for major Singaporean electronics producers, increasing TSMC’s direct relevance to the local market and strengthening its competitive position in Asia.

Singaporean institutional investors have increased their exposure to TSMC, reflecting heightened confidence in the company’s growth outlook. Disclosure data shows investment funds in Singapore have boosted TSMC allocations, leveraging the positive sector momentum and the vital role TSMC plays as a supplier to global technology leaders.

TSMC confirmed its 2nm chip production is on schedule for mass manufacturing, with targeted availability in H2 2025. This development has significant implications for Singapore’s technology and foundry sector, as local firms will benefit from earlier access to next-generation chips, opening new opportunities in advanced electronics and AI hardware.

TSMC continues to maintain a robust dividend policy, distributing $11.3 billion in dividends over the past year with a current yield of 1.45%. Stable, rising dividends are particularly attractive to Singaporean investors seeking steady returns in addition to capital gains, further reinforcing TSMC’s position as a core holding for regional portfolios.

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.