Taiwan Semiconductor Manufacturing (NYSE: TSM) shares have already delivered impressive gains of 30% in 2024, outpacing the S 500's 10% jump by a wide margin. The good news for investors is that the company, popularly known as TSMC, looks capable of sustaining its robust stock market run over the next three years as well.

Let's see why that's likely to be the case and why investors would do well to buy TSMC shares before they jump higher.

The demand for semiconductors is set to increase at a significantly faster pace in the coming years as compared to the past. The semiconductor industry generated $469 billion in revenue in 2018, a number that climbed to $527 billion in 2023, equaling a compound annual growth rate (CAGR) of 2.4%. Fortune Business Insights estimates that the global semiconductor market could generate annual revenue of $1.38 trillion in 2029. That would translate into a CAGR of 17%.

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Source Fool.com