A boom in demand for computer chips and a significant increase in the valuation of technology equities has led to an enormous increase in Taiwan Semiconductor's market capitalization. Taiwan Semiconductor's market capitalization is now almost $700 billion, up from $565 billion at the end of 2020 and around $100 billion at the start of 2015. Taiwan Semiconductor now has the largest weighting in many emerging market indexes, including the MSCI Emerging Markets index.
Taiwan Semiconductor’s No. 1 in the emerging markets book
Unlike some recent IPOs and hot technology stocks, Taiwan Semiconductor has a robust fundamental business. In 2022, revenue is expected to increase to $63.3 billion, up from an estimated $54.7 billion in 2021. Net income in 2022 is estimated to be around $24 billion. However, Taiwan Semiconductor is no longer inexpensive on almost any valuation metric.