Taiwan Semiconductor Manufacturing Company (NYSE: TSM) -- known to many as TSMC -- is the largest semiconductor foundry in the world. TSMC's foundry model, which other semiconductor manufacturers have since adapted, means the company doesn't produce chips for general sale. Instead, companies contract TSMC to make chips to fit their specific needs.

TSMC produces chips specifically designed for smartphones, cars, graphics processing units (GPUs), and dozens of other technologies that we use daily. This business model has worked well for TSMC, claiming a 56.4% market share in the global semiconductor foundry market as of the second quarter of 2023.

Thanks to a boost from AI-related hype and anticipated demand, TSMC's stock price increased over 40% in 2023. Even so, here are three reasons the company's stock could explode higher in 2024.

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Source Fool.com