Semiconductor stocks have been roaring higher over the past year as demand for artificial intelligence (AI) chips has surged, which is evident from the 57% gains clocked by the PHLX Semiconductor Sector index during the period. Foundry giant Taiwan Semiconductor Manufacturing (NYSE: TSM), popularly known as TSMC, has also benefited, clocking gains of 71% over the past 12 months.

This healthy surge in TSMC stock has brought the company's market cap to $910 billion, making it the eighth-largest company in the world. Moreover, it won't be surprising to see TSMC stock entering the trillion-dollar market cap club soon, as it is just 10% or so away from that milestone. Could it happen next year -- or even sooner?

TSMC had a forgettable 2023 as weak smartphone and personal computer (PC) sales created poor demand for semiconductors. Its revenues declined by 9% to $69.3 billion while adjusted earnings dropped 21% to $5.18 per share.

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Source Fool.com