Should I buy TSMC stock in 2025?

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At HelloSafe, our expert has been monitoring TSMC's performance for more than three years. Every month, tens of thousands of users in Singapore rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, paid by TSMC.

What is TSMC?

How much is TSMC stock?

The price of TSMC stock is rising this week. TSMC is currently trading at $175.22 USD, up 0.39% over the past 24 hours, though it has dipped 2.26% week-on-week. The company boasts a market capitalization of $908.79 billion USD, with an average trading volume of 17.78 million shares over the past three months.

With a growth bias and dynamic semiconductor demand in Asia, TSMC offers Singapore investors both opportunity and exposure to industry swings.

Our full analysis on TSMC stock

We have thoroughly analysed TSMC’s latest quarterly results and share price evolution across the last three years, triangulating advanced financial metrics, comprehensive technical signals, up-to-date market data, and competitive positioning using our proprietary analytical frameworks. The synthesis of these multifactor insights—spanning both robust fundamentals and emerging trends—allows for a nuanced perspective on TSMC’s strategic value. So, why might TSMC stock once again be a standout entry point into the global semiconductor sector as we look to 2025?

Recent Performance and Market Context

Stock Price Movement: Navigating Volatility With Upward Bias

TSMC (NYSE: TSM, TWSE: 2330) currently trades at $175.22 USD (as of May 9, 2025), with a market capitalization of $908.79 billion. This marks a robust 22.02% gain year-on-year, reflecting investor confidence in the semiconductor rebound after a softer patch in late 2024. Although the stock is down 12.91% over six months—primarily a result of global tech volatility and position unwinding from earlier highs—it demonstrates resilience with a recent stabilization above key support zones.

The 52-week range of $133.57 to $226.40 highlights considerable upside potential from current levels, as confirmed by the consensus analyst target of $223.03, around 30% higher than today’s price. Notably, TSMC recently outperformed peers on earnings momentum, and its ability to weather sector-wide corrections invites renewed attention.

Positive Recent Events: Earnings Outperformance and Growth Guidance

TSMC’s latest Q1 2025 results exceeded expectations with revenue of $25.53 billion USD (up 35.3% YoY), and net income soaring by 60.3%. Even as sequential revenue dipped modestly (down 5.1% QoQ), management’s Q2 revenue guidance of $28.4–29.2 billion USD signals renewed topline acceleration, underpinned by ongoing AI chip demand and capacity expansion.

In April 2025 alone, TSMC generated NT$349.57 billion in revenue, a 22.2% increase YoY, contributing to a stellar 43.5% rise in year-to-date revenue. These advances, combined with industry-leading margins, underscore why TSMC’s fundamentals justify renewed investor interest at today’s levels.

Macroeconomic and Sector Tailwinds

Semiconductors remain a high-priority sector for governments and corporates alike, fuelled by secular growth in AI, high-performance computing, automotive, and IoT end-markets. TSMC uniquely bridges U.S.-Asia technology flows, a distinct advantage as onshoring incentives and increased digitalization underpin secular demand. In a world where chip supply chains are being redefined, TSMC stands at the epicentre, benefitting from customers’ need for both reliability and technological leadership.

Technical Analysis: Building a Case for Short- and Medium-Term Strength

Indicator Review: Signs of a Constructive Trend

• Price vs Moving Averages:
• The stock is above its 20-day ($162.80) and 50-day ($167.48) SMAs, signifying near-term strength.
• It trades just below its 100-day ($186.05) and 200-day ($183.00) SMAs, a structure often seen ahead of new bullish phases, where consolidation precedes uptrends.
• RSI (14):
• Currently at 58.35, TSMC is comfortably in neutral territory—not overbought, not oversold—offering scope for a directional move without exhaustion.
• MACD (12,26,9):
• A positive MACD of 2.69 reflects strengthening bullish momentum, suggesting upward price risk may be favoured over the next swing.
• Stochastic (%K):
• At 80.93, Stochastic suggests momentum is picking up, albeit not at extreme levels.

Structural Signals: Support and Reversal Potential

TSMC’s key support levels at $163.25, $159.82, and $156.38 have been well tested, with buyers stepping in consistently. These floors provide a strong technical cushion for new entries. Resistance at $177.00 and $180.74 would, if breached, likely trigger additional upside as algorithmic and discretionary traders rotate back into the name.

• Bullish context:
• The stock’s position above short-term moving averages and a positive MACD signal indicate TSMC could be entering a renewed bullish phase, making this technical structure highly attractive for investors seeking favourable entry conditions.

Fundamental Analysis: High-Calibre Growth and Endurance

Financial Strength: Robust and Scaling

• Revenue Growth and Profitability:
• Q1 2025 revenue of $25.53 billion USD soared 35.3% year-on-year.
• Net income: NT$361.56 billion ($11.12 billion USD, up 60.3% YoY).
• EPS: NT$13.94 ($2.12 USD per ADR), up 60.4% YoY.
• Gross margin: 58.8%; operating margin: 48.5%—both are sector-leading.
• Valuation and Yield:
• P/E ratio (TTM): 21.06 and forward P/E: 17.51 position TSMC attractively versus global tech peers, balancing growth prospects with reasonable valuation.
• Dividend yield at 1.56% (with dependable quarterly payouts and a progressive policy) enhances total return.
• Balance sheet:
• With NT$2.7 trillion in cash and a conservative capital structure, ongoing technology investments and macro shocks are well managed.

Valuation Metrics: Justification for Renewed Interest

TSMC’s price/sales (8.68) and price/book (6.43) multiples, while not low, are justified by best-in-class profitability, rapid earnings growth (PEG ratio implied

Structural Strengths

• Technological leadership (3nm, 5nm, developing 2nm)
• Dominant global market share (mid-60s in 2024 for pure-play foundries)
• Unmatched scale enabling superior margins and capital returns
• Blue chip customer roster: Apple, Nvidia, AMD, etc.

Volume and Liquidity: Market Trust and Accessibility

Sustained Trading Volume

• Average daily volume: 17.78 million shares (3-month average)
• Volumes remain elevated, with strong institutional participation reflecting sustained interest even during pullbacks.
• TSMC’s highly liquid ADR on the NYSE is easily accessible for Singapore-based and global investors, facilitating seamless entry or exit.

Float Structure and Dynamic Valuation

Foreign institutional ownership and a broad-based float underpin robust price discovery, contributing to dynamic yet orderly movement in response to new information. This highly liquid profile not only enhances flexibility for various investor strategies, but also inspires confidence in the market’s appraisal of fair value.

Catalysts and Positive Outlook: Foundations for Future Acceleration

Core Bullish Catalysts

• AI and High-Performance Computing:
• Revenue mix shows advanced nodes (7nm and below) account for 73% of wafer sales, illustrating TSMC’s insurmountable lead in next-generation process technology and strong tailwinds from AI chip deployment.
• Strategic Global Expansion:
• TSMC is actively investing in fabs across the US, Japan and Europe, mitigating some geopolitical concentration risk and unlocking new local subsidies and customer partnerships.
• Tech Innovation and 2nm Roadmap:
• Ongoing R&D investments in 2nm technology reinforce prospects for sustainable leadership and premium pricing.
• Automotive and IoT Growth:
• Increasing semiconductor content per vehicle and smart device, translating to secular sales growth beyond cyclical swings.
• ESG and Sustainability Initiatives:
• Commitment to responsible manufacturing, sustainability, and supply chain robustness—a focal point for institutional investors in Singapore and globally.

Positive External Context

• Sector Upswing:
• The global semiconductor cycle appears to be in the early stages of a multi-year upturn, with re-acceleration in capex and government-sponsored innovation benefiting firms with scale and execution power.
• Regulatory Environment/Onshoring:
• US and EU policies are amplifying the need for secure and reliable chip manufacturing, directly benefiting TSMC’s unique cross-border value proposition.

Investment Strategies: Compelling Arguments for Entry

Short-, Medium-, and Long-Term Positioning

• Short term:
• Technical structure (above 20- and 50-day SMAs, bullish MACD) and recent earnings surprise make TSMC appealing for tactical traders seeking momentum in blue chip technology stocks.
• Interim supports ($163–$159) should anchor risk, while an upside break of $180 could yield strong follow-on flows.
• Medium term:
• Q2 2025 guidance and continuation of high-margin AI chip demand provide a clear path for earnings-driven share price re-rating as the market digests new product launches and capacity utilization hikes.
• Long term:
• Secular trends (AI, automotive, digitization) and persistent technology leadership ensure TSMC’s integral role in the digital economy, supporting multi-year value creation.
• Expansion into new geographies reduces stress from geopolitical risk over time, increasing defensive qualities.
• Ideal positioning:
• Considering the recent retracement from 2024 highs and technical resting levels, investors are presented with the chance to establish or add to positions at a technically and fundamentally justified juncture—a classic “buy the dip in quality” situation likely to benefit from near-term catalysts and long-term tailwinds.

Is It the Right Time to Buy TSMC?

Summary of Key Strengths

• Dominant global foundry with deep moats in scale and technology
• Consistently sector-leading financial results and operating margins
• Accelerating demand in AI, HPC, automotive, and IoT
• Active geographic diversification and capacity additions
• Highly liquid and accessible stock with strong institutional backing
• Analyst consensus targets imply substantial upside from current levels

TSMC stands at the crossroads of innovation and global demand, underpinned by powerful financials and an enviable strategic position. The recent share price correction, in the context of accelerating fundamental performance and an emerging cyclical upturn, seems to represent an excellent opportunity for renewed engagement by growth-oriented investors. With its leadership in next-generation technology, robust expansion roadmap, and high market liquidity, TSMC appears poised to enter a new bullish phase—making it a stock that deserves to be seriously considered by those looking for both resilience and growth in the heart of the digital economy.

In a world driven by technology, TSMC is more than just a barometer for the semiconductor sector—it is a bellwether of secular growth and innovation; and for forward-thinking investors, current conditions may signal the beginning of an auspicious new chapter.

How to buy TSMC stock in Singapore?

Buying TSMC (Taiwan Semiconductor Manufacturing Company) stock online is both simple and secure when using a regulated broker. Singapore-based investors can easily access global markets and purchase TSMC shares in just a few clicks, benefiting from strong investor protections. There are two main ways to gain exposure: direct ownership through spot buying (cash purchase), or trading price movements via Contracts for Difference (CFDs). Each approach has its pros and cons, depending on your investment goals and risk tolerance. Be sure to review our broker comparison, further down this page, for a detailed overview of the best options available.

Spot Buying (Cash Purchase of TSMC Stock)

A cash purchase means you buy TSMC shares outright, becoming a direct shareholder. You will own the real shares listed on the New York Stock Exchange (NYSE: TSM), held in custody by your broker. Most Singapore brokers charge a fixed commission per order, typically around SGD 5–10 for US stocks.

Example

If the TSMC share price is $175.22 USD, with SGD 1,350 (roughly $1,000 USD), you can buy about 5 shares (5 × $175.22 = $876.10 USD), after deducting a SGD 7 (about $5 USD) brokerage fee.
✔️ Gain scenario:
If the share price rises by 10%, your 5 shares are now worth $192.74 each, totaling $963.70.
Result: That’s a gross gain of about $87.60 USD, or roughly +10% on your stake.

Trading via CFD (Contracts for Difference)

CFD trading lets you speculate on TSMC’s share price without owning the underlying stock. It allows buying ("going long") or selling ("going short"), often with leverage. With CFDs, main fees include the spread (difference between buy and sell price) and overnight financing if you hold positions for more than a day.

Example

You open a CFD position on TSMC with $1,000 USD and apply 5× leverage, giving you $5,000 USD market exposure.
✔️ Gain scenario:
If TSMC shares rise by 8%, your CFD position generates a return of 8% × 5 = 40%.
Result: That’s a pre-fee gain of $400 on your $1,000 outlay. Remember, overnight holding fees and the spread will reduce the final profit.

Final Advice

Before investing, it’s crucial to compare brokerage fees and trading conditions. Spot buying offers true ownership and is usually suited for longer-term investors, while CFD trading offers flexibility and leverage but comes with higher risk and additional fees. The right choice depends on your investment objectives and risk profile. For a full comparison of leading brokers in Singapore, see our detailed table further down this page.

Our 7 tips for buying TSMC stock

The latest news about TSMC

TSMC’s Q1 2025 profit surged by over 60% year-on-year, exceeding analyst expectations. TSMC’s latest financial results, released within the past three weeks, reveal a robust net income of NT$361.56 billion ($11.12 billion USD) and a 35.3% increase in revenue year-on-year for Q1 2025, with earnings per share up by over 60%. This strong operational performance is underpinned by ongoing demand for advanced chips in AI and high-performance computing, a trend particularly relevant to Singapore given its growing data center and digital economy sectors that rely on TSMC’s technology. TSMC’s positive financial momentum is likely to inspire confidence among institutional investors in Singapore and attract further interest from sovereign investors and private wealth managers in the region.

April 2025 revenue showed a 22.2% annual increase, reinforcing expectations for an upbeat Q2 performance. For April 2025, TSMC reported NT$349.57 billion in revenue—a 22% jump from the prior year—building on stellar Q1 figures and assuring analysts about continued demand for advanced semiconductors. With the company guiding for $28.4–29.2 billion USD in Q2 revenue, these results support a narrative of industry outperformance. Singapore-based tech and manufacturing firms sourcing semiconductors, as well as investors exposed via regional ETFs or direct holdings, are likely to interpret these results as a clear positive signal amidst global semiconductor supply chain realignment.

TSMC stock displayed short-term bullish signals despite a recent pullback, with analyst targets implying substantial upside. While TSMC’s NYSE-listed stock has retreated 2.26% over the past week and remains nearly 13% below its six-month highs, technical indicators present an encouraging short-term outlook. The current price sits above both its 20-day and 50-day moving averages, with a bullish MACD and a neutral RSI, suggesting ongoing demand for TSMC’s shares. The consensus analyst price target remains $223.03, about 30% above current levels, highlighting substantial potential upside that is especially relevant to Singapore’s sophisticated investment community, including institutions and high-net-worth individuals actively trading US-listed technology stocks.

AI chip leadership and advanced node technologies continue to drive growth, supported by regional digital transformation trends. TSMC’s dominance in manufacturing leading-edge chips at 3nm and 5nm nodes—accounting for nearly 60% of Q1 2025 wafer revenue—positions the company at the forefront of the AI and data economy, a strategic priority for Singapore. Singapore’s major technology and financial sector players, many of whom integrate TSMC-powered chips into their products or services, stand to benefit directly from TSMC’s technological advances. The ongoing digital transformation in Southeast Asia, powered by AI, high-performance computing, and the proliferation of cloud data centers, is likely to create sustained demand and positive feedback loops for TSMC’s business in the region.

Dividend stability and solid financial health provide reassurance to Singapore-based income investors amid global volatility. TSMC’s commitment to a steadily increasing quarterly dividend, currently yielding 1.56%, combined with its robust cash position (NT$2.7 trillion), will be viewed favorably by Singapore-based investors seeking dependable income from global technology leaders. With the next ex-dividend date on June 12, 2025, and the company’s intention to maintain a prudent yet progressive capital return policy, TSMC remains an appealing option for both institutional asset allocators and private wealth accounts looking to balance growth with yield, especially in a persistently volatile macroeconomic environment.

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.