This Stock Is Vital to the Tech Industry and Could Be a Huge Winner This Year

When you speech astir the planetary tech industry, determination are 2 companies it cannot bash without. One is ASML Holding N.V. (NASDAQ: ASML), which I've covered earlier and whose lithography machines are perfectly captious successful semiconductor manufacturing.

The different is Taiwan Semiconductor Manufacturing (NYSE: TSM) which, arsenic of Q3 2025, controls a whopping 72% of the axenic foundry semiconductor market.

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I've besides covered Taiwan Semiconductor successful examination to Intel, but this institution is worthy getting an nonfiction each its own.

Now, determination are tons of companies successful the semiconductor manufacture that plan chips but don't nutrient them. They're called "fabless" due to the fact that of that.

Taiwan Semiconductor isn't 1 of them.

As a axenic foundry company, it produces chips different companies person designed, similar Apple and Nvidia, which relationship for 25% and 11% of Taiwan Semiconductor's revenue, respectively.

Speaking of revenue, Taiwan Semiconductor brought successful $122.42 cardinal successful gross for 2025, up 36% implicit 2024.

It besides managed a gross borderline of 59.9% and an operating borderline of 50.8%, up 3.8 and 5.1 ground points, respectively, implicit 2024, which is peculiarly awesome for an manufacture arsenic superior intensive arsenic semiconductor manufacturing.

And, contempt those expenses, it really drove down its superior expenditures by 1.3% successful Q4 2025 from Q4 2024, and its escaped currency travel grew by 42%. For the full of 2025, the institution grew its operating currency travel by 24.6%.

Taiwan Semiconductor besides expects its profitability to amended and has targeted a gross borderline of 63% and 65% and an operating borderline of 54% and 56% for Q1 2026.

The institution holds a nett currency presumption of $88 cardinal to a full indebtedness of $31.6 billion. It's not simply sitting connected that currency either, arsenic it's moving to grow its planetary footprint rapidly.

Taiwan Semiconductor has already invested $165 cardinal successful a gigantic semiconductor mill successful Phoenix, Arizona and is presently moving connected an enlargement to the works targeted for completion successful 2028.

That works already helped Taiwan Semiconductor get astir immoderate of the Trump administration's tariffs. But past successful January 2025, Taiwan Semiconductor was portion of an statement with Washington that would spot tariffs connected Taiwan reduced from 20% down to 15%.

In return, Taiwan Semiconductor and different Taiwanese spot and exertion companies volition put $250 cardinal successful their American accumulation capacity. For Taiwan Semiconductor's part, it purchased different crippled of onshore successful Arizona to grow its footprint successful the state.