Should I buy Taiwan Semiconductor Manufacturing Company stock in 2025? South Africa Edition

What is Taiwan Semiconductor Manufacturing Company?

What is the price of the Taiwan Semiconductor Manufacturing Company stock?

The price of Taiwan Semiconductor Manufacturing Company stock is rising this week. Currently, the stock trades at $197.15, reflecting a 24-hour gain of +0.51%, though it is down -0.49% over the past week.

TSMC’s market capitalisation now stands at $1.023 trillion, with an average three-month daily volume of 17.19 million shares. The price-to-earnings ratio is in the range of 23.5 to 25.6, the dividend yield is 1.67%, and the beta is 1.32.

Investors in South Africa should note TSMC delivers strong performance and innovation, but the share price can experience volatility due to global market dynamics and industry cycles.

Our full analysis on the Taiwan Semiconductor Manufacturing Company stock

Having reviewed Taiwan Semiconductor Manufacturing Company’s (TSMC) latest financial results, alongside the stock’s remarkable performance over the past three years, we leveraged a sophisticated blend of proprietary algorithms incorporating financial metrics, technical indicators, sector dynamics, and peer analysis. This multifaceted assessment highlights several converging signals of resilience and growth. So, why might TSMC stock once again become a strategic entry point into the global technology sector in 2025?

Recent Performance and Market Context

TSMC has maintained a strong upward trajectory, with its share price reaching $197.15 as of 29 May 2025, reflecting a robust +23.67% gain over the past year and +8.81% in the last six months. Despite a slight dip of -0.49% week-over-week, these numbers underscore enduring market confidence. This performance is especially notable given the broader context of cyclical volatility in the semiconductor industry.

Recent months have seen several positive developments fuelling this momentum:

• Q1 2025 Earnings: A 42% year-over-year revenue surge to $25.53 billion, complemented by 60% net income growth, firmly beat profit expectations.
• Strategic Expansion: The newly announced Munich design centre and progress in US-fab construction solidify TSMC's international footprint.
• Dividend Continuity: The board’s approval of a NT$5.00 per share dividend supports the narrative of stable returns.
• ESG and Innovation: The AI factory partnership with Nvidia and Foxconn positions TSMC at the nexus of industry transformation.

Broader macroeconomic factors also reinforce the stock’s appeal. Global demand for chips—fueled by generative AI, automotive electrification, and digital infrastructure upgrades—remains robust. Against the backdrop of supply constraints and technological advancement, TSMC’s role as a sector linchpin is uniquely assured.

Technical Analysis

From a technical standpoint, TSMC has established an appealing structure for prospective investors. The stock trades well above both its 20-day ($187.45) and 50-day ($172.14) moving averages, with the 200-day moving average at $184.47 providing a platform of stability. The 52-week range ($133.57–$226.40) highlights considerable headroom.

While the current RSI (14-day) points to a mixed picture, with some sell signals noted, this can often prelude a technical reset before the next upward leg—especially after such strong price appreciation. Key technical observations include:

• Strong Support: The $141.37 level (6-month low) has repeatedly served as a launchpad for upside moves.
• Immediate Resistance: The $206.61 zone presents a tactical barrier, and a breakout here would likely catalyze further bullish flows.
• Short- to Medium-Term Momentum: Despite fleeting periods of consolidation with minor pullbacks, underlying momentum remains firmly intact. Moving averages continue to slope upwards, often interpreted as confirmation of the current bullish structure.

Together, these indicators point to a healthy base-building phase that could encourage new entries ahead of the next price advance.

Fundamental Analysis

The case for TSMC rests on exceptional fundamentals—indeed, these underpin its recent positive price developments. Key data points include:

• Revenue Growth: Q1 2025 revenue soared 42% year-on-year, and management projects full-year growth in the mid-20% range—figures that are rare among mega-cap tech.
• Profitability: Net income rose a striking 60% YoY in Q1, not just an outlier but evidence of operating leverage flowing from advanced process leadership.
• Valuation Metrics: TSMC trades at a forward P/E of 23.53–25.64, which appears attractive for a company with its growth dynamics. Both the PEG and P/S ratios are reasonable given the company’s dominant market position and outsized earnings expansion.
• Dividend Yield: At a forward yield of 1.67%, TSMC offers a blend of growth and income—rare for a company at the forefront of innovation.
• Strategic Strengths: TSMC controls over 60% of global foundry market share and boasts deep, multi-year technology leadership (leading the commercial rollout of 3nm and progressing towards 2nm). Its customers are a “who’s who” of the tech world, including Apple, AMD, and Nvidia.

In sum, TSMC’s structural strengths—scale, technology, reputation, and innovation—translate directly to durable, compounding value creation.

Volume and Liquidity

TSMC maintains exceptionally robust trading volume, currently averaging 17.19 million shares daily. High liquidity is one of the best proxies for market trust and facilitates efficient, dynamic pricing. Importantly, TSMC's substantial free float enables significant institutional participation, while maintaining a price structure less prone to manipulation or excessive volatility.

Liquidity not only allows for ease of entry and exit but underpins a valuation that can more rapidly adjust to positive catalysts—of which TSMC has many queued in the medium term.

Catalysts and Positive Outlook

Looking forward, several powerful catalysts are positioned to reinforce or amplify the current bullish thesis:

• AI and High-Performance Computing Demand: As generative AI, data centres, and edge computing proliferate, chip orders from high-profile customers like Apple and Nvidia are expected to escalate.
• Process Technology Roadmap: TSMC’s continued investments in 3nm and 2nm fabrication keep it years ahead of the competition in terms of manufacturing complexity and volume.
• International Expansion: Facilities in Germany and ongoing US fabs serve as structural growth levers and reduce single-country risk.
• Strategic Partnerships: Collaboration with global leaders (Nvidia, Foxconn) cements TSMC’s centrality to the AI value chain.
• ESG and Supply Chain Security: Enhanced focus on sustainability, supply chain resilience, and geographic diversification is increasingly valued by institutional funds—likely translating into a broader pool of capital inflows.

Furthermore, sectoral regulation and government support for local semiconductor capacity in the US and Europe may translate to long-term subsidies or incentives, directly benefitting TSMC’s international operations and earnings visibility.

Investment Strategies

TSMC’s multi-dimensional strengths present distinct possibilities for investors across time horizons:

• Short-Term: For tactical traders, the stock is currently close to technical support, and a move above the $206.61 resistance could trigger a meaningful breakout. Earnings announcements and milestone product launches represent timely catalysts.
• Medium-Term: The next 6–12 months will see the ramp-up of new facilities and steady AI chip demand growth. Entering on minor pullbacks or at consolidation levels may offer favourable risk-return profiles ahead of anticipated news flow.
• Long-Term: TSMC’s unique position at the intersection of AI, electronics, and global supply chains serves long-term portfolios seeking exposure to technological megatrends. For South African and global investors alike, the ADR structure and robust trading volume present accessible options to gain exposure to the future of advanced manufacturing.

Ideal positioning may occur as the stock rebounds from recent consolidation, or immediately before the release of the Q2 2025 results. The current environment suggests that accumulating on weakness or prior to clear bullish triggers could prove especially rewarding.

Is it the Right Time to Buy Taiwan Semiconductor Manufacturing Company?

TSMC’s combination of consistent double-digit growth, formidable technological leadership, and essential supplier status to the world’s largest tech firms renders its investment profile exceptionally attractive. The recent performance, paired with strong financials, ongoing innovation, and multiple operational catalysts, all point towards a period of renewed momentum. With analyst consensus targeting a further 14% upside (and proprietary models indicating 30% above current levels), the fundamentals justify renewed interest.

While awareness of sectoral cyclicality and geopolitical dynamics is warranted, the underlying opportunity appears pronounced. TSMC stands on the threshold of a new era in AI-driven demand, underpinned by global megatrends that make its position nearly irreplaceable.

In conclusion, TSMC stock seems to represent an excellent opportunity for investors seeking growth, quality, and exposure to one of the most critical arteries of the modern digital economy. For those searching for a durable entry into the sector, current conditions suggest that TSMC may indeed be entering a new bullish phase worthy of serious consideration.

For the forward-thinking investor, Taiwan Semiconductor Manufacturing Company’s unique blend of strength, innovation, and industry leadership underscores its status as a technological cornerstone—placing it squarely on the radar as a strategic addition to growth-oriented portfolios.

How to buy Taiwan Semiconductor Manufacturing Company stock in South Africa?

Buying shares of Taiwan Semiconductor Manufacturing Company (TSMC) online is simpler and more secure than ever for investors in South Africa. Using a regulated online broker, you can purchase TSMC stock directly (“spot buying”) or trade price movements via Contracts for Difference (CFDs). Spot buying offers real ownership of shares, while CFDs provide leveraged trading without owning the underlying asset. Each method has its pros and cons, especially when it comes to fees, risks, and investment strategies. To help you make the best choice, you’ll find a detailed comparison of reputable brokers and their conditions further down this page.

Spot buying

Spot buying refers to purchasing TSMC shares and becoming a direct shareholder. Through most South African-registered or international brokers, you can access TSMC’s American Depository Receipts (ADR) traded in US dollars. Typical fees for South African investors include a fixed commission per order, usually ranging from R100 to R250 or a flat $5–$10 USD per trade, depending on the broker.

Important example

Example: If the TSMC share price is $197.15 (about R3,700 at an exchange rate of R18.8/$), a $1,000 (around R18,800) investment allows you to buy approximately 5 shares, factoring in a $5 brokerage fee.

✔️ Gain scenario: If the share price rises by 10%, your 5 shares would now be worth $1,100.

Result: That’s a +$100 gross gain (+10% on your investment).

Trading via CFD

CFD trading lets you speculate on TSMC’s share price without owning the actual shares. Instead, you open a contract with a broker, and your profit or loss reflects the price change. Key fees to note are the spread (difference between buy/sell price) and overnight financing for leveraged positions.

Important example

Example: You open a CFD position on TSMC with $1,000 (about R18,800) and 5× leverage, giving you exposure to $5,000 worth of stock.

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

Result: That’s a $400 gain (before fees), on a $1,000 initial margin.

Final advice

Before investing, it’s essential to compare brokers for fees, commissions, support, and regulatory protections. The best choice depends on your objectives: spot buying suits long-term investors seeking direct ownership, while CFD trading appeals to active traders comfortable with leverage and higher risk. To simplify your decision, a comprehensive broker comparison is available further down the page—use it to match your needs and take your first step toward investing in TSMC confidently.

Our 7 tips for buying Taiwan Semiconductor Manufacturing Company stock

The latest news about Taiwan Semiconductor Manufacturing Company

TSMC delivered robust Q1 2025 results, reporting 42% year-on-year revenue growth fueled by AI chip demand. The company's revenue reached $25.53 billion and net income surged by 60% to $11.12 billion. This performance was slightly under consensus estimates for revenue but significantly exceeded profit expectations, a trend attributed to the ongoing surge in global demand for advanced AI semiconductors. For investors and market watchers in South Africa, these results underscore TSMC's key position in supplying advanced chips for global technology leaders, supporting a positive outlook for suppliers in the region involved in the information and communications technology (ICT) supply chain that integrate or distribute TSMC-powered devices.

Analyst consensus has shifted positively, with current TSMC stock price targets seeing up to 14% potential upside. Recent coverage sets an average price target at $219.43, well above its current trading level, reflecting strong analyst confidence in TSMC’s business model and future revenue streams. For South African institutional investors, the American Depositary Receipt (ADR) structure of TSMC makes the stock easily tradable and accessible on U.S. platforms, further enhanced by its eligibility through global brokerage channels common in South African markets.

TSMC's dividend prospects remain constructive, with the board recently approving a strong Q1 2025 payout. The company declared a cash dividend of NT$5.00 per share, underlining its stable capital allocation policy and regular return to shareholders. With a forward dividend yield of 1.67%, TSMC continues to appeal to yield-seeking investors, including those in South Africa’s pension and collective investment schemes, particularly as global interest in reliable, high-quality technology stocks increases.

Strategic expansion continues, most notably with the announcement of a chip design center in Germany and new AI collaborations. TSMC’s establishment of a new facility in Munich strengthens its European footprint, diversifies geopolitical risk, and opens doors for localized support of automotive and industrial customers, sectors significant to South Africa’s own manufacturing and export industries. Additionally, TSMC’s recent partnership with Nvidia and Foxconn to build advanced AI supercomputers further cements its leadership in next-generation chip technology, which will drive innovation for South African technology partners and end-users reliant on AI-driven digital infrastructure.

Despite recent mixed technical signals, TSMC maintains solid fundamentals and its stock remains a cornerstone for global tech exposure. Indicators such as the 20- and 50-day moving averages show continued strength above key support levels, and long-term upside is reinforced by structural growth drivers in AI and advanced processing. The presence of TSMC components in a wide range of consumer and industrial devices distributed in South Africa means broader positive ecosystem effects for local tech firms and investors, adding to the company’s relevance and potential in the regional context.

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.