As the world's largest pure-play foundry, Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) — often abbreviated as TSMC — plays a critical role in the global semiconductor value chain. Late last year, International Data Corp stated that the company could expand its market share in the foundry industry to 36% by the end of this year, rising from 33% in 2024.
Not surprisingly, TSM stock has responded well to the broader enthusiasm, backed by tremendous demand for artificial intelligence. On a year-to-date basis, TSM has gained just over 22% as of the close of the Aug. 14 session. This return stemmed from explosive performance since early April. However, since around mid-July, the upswing has noticeably flatlined, leading to questions about forward viability.
