TSMC Shares Face Geopolitical Test Amid AI Boom

The world’s leading semiconductor foundry, Taiwan Semiconductor Manufacturing Company (TSMC), finds itself navigating turbulent waters as geopolitical friction intensifies while artificial intelligence demand drives unprecedented revenue growth. Recent tensions between the United States and China have triggered significant market reactions, raising questions about the stock’s valuation.

TSMC’s business fundamentals remain robust, as demonstrated by recent financial disclosures. On Thursday, the company reported explosive revenue growth of 36.4% for the first nine months of 2025 compared to the previous year. The third quarter alone generated approximately $32.5 billion in revenue—a 30% increase that slightly exceeded market expectations.

This remarkable performance stems from insatiable demand for advanced AI chips from technology giants including Nvidia and AMD. With control over more than 70% of the... Read more...