Taiwan Semiconductor Manufacturing Company (TSMC) has officially entered the global top 10. On Monday, its American depositary receipts (ADRs) closed at $207, giving the chip giant a market cap of $1.07 trillion. That edged it just above Berkshire Hathaway, which dipped slightly to $1.06 trillion, according to data from Company Market Cap.
The milestone came after a positive Wall Street session, where tech optimism was buzzing, thanks to signs of progress in U.S.-China trade talks in London. The Nasdaq rose 0.31%, while the Philadelphia Semiconductor Index gained 1.96%.
What does this mean for the average investor?
TSMC’s climb shows just how powerful the AI boom has become. This isn’t just about semiconductors anymore—it’s about controlling the future of computing. If you’re invested in AI, you’re invested in chips. And TSMC is where many of those chips are born.
On Tuesday, the buzz carried over to Taiwan. TSMC’s shares on the local exchange jumped 3.98%, closing at NT$1,045 ($34.84 USD)—the highest since early February. That added a stunning NT$1.03 trillion to its market cap in just one day.
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Why this matters beyond the charts
TSMC isn’t trading at crazy high prices either. According to Tom Tang of MasterLink Securities, it still sits at a price-to-earnings ratio of just 17–18, while AI rival Nvidia is in the 31–32 range. That means there could be more room for growth.
In other words: the world’s biggest chipmaker may still be underpriced.
A small catch: the Taiwan dollar effect
MasterLink did lower its 2025 earnings estimate for TSMC from NT$61–62 per share down to NT$59, thanks to a stronger Taiwan dollar. TSMC noted that every 1% rise in the Taiwan dollar cuts its gross margin by 0.4%. So currency matters—even when your chips are powering the AI future.
And TSMC’s rise lifted more than just its own stock
The rally helped Taiwan’s Taiex index climb 2.07%, gaining 322 points to hit 22,242.14. That’s now well above the key 120-day moving average of 22,010.
TSMC is no longer just a tech supplier—it’s a global heavyweight. As AI continues to explode, the real winners are the ones building the digital foundation. Chips are the new oil, and TSMC is drilling deep.
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