Will TSMC Be a Trillion-Dollar Stock by 2030?
Few companies have managed to exceed a trillion dollars in market capitalization, and even fewer have managed to stay above that threshold. Currently, only four U.S. companies maintain this designation: Apple, Microsoft, Alphabet, and Amazon (Amazon is just barely above a $1 trillion market cap). After that, there's quite the gap between Amazon and fifth-place Nvidia, at about $663 billion.
By 2030, it's quite likely there will be multiple new entrants into this club, and one that I think could reach this threshold is Taiwan Semiconductor Manufacturing (NYSE: TSM), better known as TSMC. With TSMC sitting at a $480 billion market cap right now, the company would need to maintain an 11% compounded annual growth rate through 2030 to hit that next-level valuation. That means it would need to exceed the broader market's long-term 10% average growth rate.
Does TSMC have what it takes to join the trillion-dollar market cap club? Let's explore.
Source Fool.com
