The production of Taiwan semiconductors is about to start making chips using their new 2 nanometer production process.
The show’s giant sees a huge demand for pre -order due to its 2nm production capacity.
Recently, NVIDIA has made an incredibly projection of bulls on the perspective of AI infrastructure costs.
10 stock we like more than Taiwan’s semiconductor production ›
Currently, there are only three companies with a top limit of markets exceeding 3 trillions of USD: NvidiaIs it Microsoftand Apple; However, this list could easily expand over the next five years. The one who I think could join this club by 2030 is Production of Taiwan semiconductors (NYSE: TSM);
Currently, the Taiwan semiconductor has a $ 1.2 trillion market in the top limit, so the $ 3 trillion value will require the stock to increase by 150%. These would be significant changes in Megacap in just five years, but given that the Taiwan semiconductor was a huge Taiwan semiconductor, I think this is an unfair forecast.
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Taiwan’s semiconductor is the largest chip foundry in the world. It handles the production of chips for some dominant names Tech, including Nvidia and Apple. None of these two have the ability to produce the interior of the chips; They design their chips from the inside, then transmit production to Taiwan semiconductor.
Many times Taiwan semiconductor produces chips for companies that are direct competitors such as GPU Both GPU Both GPU AMD and Nvidia or chips that feed on Apple iPhone and Google Pixel phones. But since he does not try to sell competing for his design chips, he can remain neutral.
The Taiwanese semiconductor rose to the top of the Chip Foundry industry, constantly innovating and providing excellent production yields. Currently, it can produce 3-nanometers (NM) chips-to-the-country, advanced and functions dense chips made commercially anywhere. In general, however, corporate customers are not currently looking for increased calculation speed. They are primarily related to energy consumption, especially customers in AI, where the electricity needed to run in huge data centers can become a restrictive factor.
Later this year, the Taiwanese semiconductor will begin to make chips using his 2nm process knot. Those chips will consume from 25% to 30% less power when configured to act at the same speed as 3 Nm chips. In addition, it creates 1.6 Nm and 1.4 Nm chips, which she believes will improve the amount of 2 nm chip in similar quantities.
The demand for 2NM chips seems to be staggering and can give another increase in growth to the Taiwan semiconductor. Given the latest results, I am not sure whether this increase is needed, which can lead to even higher return on shareholders.
In the second quarter, Taiwan’s semiconductor income increased by 44% per year with US dollars. During the third quarter, the management predicts approximately $ 32.4 billion. It is an incredibly successful business and its growth rate does not seem to slow down quickly.
In the quarter, 60% of Taiwan’s semiconductor income consisted of a high -power calculation segment, indicating the huge demand for chips that fall into products such as NVIDIA GPU, providing most of the main calculation power based on the AI revolution. We have already seen AI hypercalers reports that 2026 They will set new data center costs. In addition, Nvidia told investors that the data center capital expenditure would be expected to be $ 3 to $ 4 trillion a year to $ 600 billion, expected to be $ 2025.
This means 38% of the compound annual growth rate (CAGR) from now to 2030. Given that the Taiwanese semiconductor is the main manufacturer of almost every large calculation chip going to the AI data center, it is not unrealistic to expect it to reach this growth rate.
If Taiwan Semiconductor has given 38% CAGR revenue over the next five years, and its shares followed an example, it will increase from $ 1.2 trillion to $ 6 trillion. Much more conservative calculation that the composite annual growth rate is about 25%will still allow the company by 2030. The company deserves 3 trillions of USD.
Taiwan’s semiconductor is one of the main participants in the AI sector and is still huge upside down, so he is now the most popular.
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Keithen Drury occupies positions in Nvidia and Taiwan’s semiconductor production. The Motley Fool has positions and recommends that advanced micro -equipment, Apple, Microsoft, Nvidia and Taiwan’s semiconductor production. The Motley fool recommends the following options: 2026. January 395 USD calls Microsoft and briefly 2026. January $ 405 Microsoft calls. The Motley fool has a disclosure policy.
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