TSMC Poised to Outpace Apple as AI Revolution Takes Hold
TSMC (Taiwan Semiconductor Manufacturing) is set to outpace Apple in growth, and its stock price reflects this. The two companies have a long-standing partnership, with Apple designing chips that TSMC manufactures. However, while Apple's new A20 Pro chip uses TSMC's cutting-edge 2-nanometer technology, the company's focus on AI has been lacking.
TSMC, on the other hand, is embracing AI and its growth rate is expected to be significantly higher than Apple's in the coming years. In 2026, Wall Street analysts predict TSMC's revenue will grow at a 43% pace in New Taiwan dollars, while Apple's growth is expected to be only around 15%. This disparity is even more pronounced when looking at valuations, with TSMC trading at a lower premium than Apple.
Despite this, investors may want to consider the potential risks of missing out on AI opportunities. A subscription-based AI model from Apple could provide an instant boost to its financials, but it may be too late for the company to capitalize on the technological revolution.