TSMC keeps its grip on chipmaking as AI demand booms, and the stock still looks reasonably priced — good news for investors.

• TSMC held 73% of the contract chipmaking market for a second straight quarter, far ahead of rivals.
• AI demand drove the whole industry's sales up 29% from a year ago, with TSMC's 2nm chips now in mass production.
• The stock is up 41% this year, beating both its industry and the S&P 500.
• Even after that run, TSMC trades below its usual valuation, which is why analysts still call it a buy.
• Big spending continues: 13 new advanced packaging plants in Taiwan, plus another $100 billion committed in Arizona.

Outlook: Next-generation A14 chips are on track for 2027 trial runs and 2028 mass production, and cloud customers are signalling strong demand for years ahead.