AI Fuels the Rise of Semiconductors & Foundries: 2015–2025 Growth Story

Over the past decade, the market caps of semiconductor designers and foundries have been fundamentally reshaped by AI demand and technology cycles. NVIDIA led the pack, vaulting from $17.7 B in 2015 to over $4.4 T in 2025 (a 73.6% CAGR), while AMD climbed more than 120× thanks to Ryzen and EPYC momentum. Broadcom’s acquisition-driven strategy fueled a 35× rise, and pure-play foundry leader TSMC grew nearly 9× to $1 T, underscoring the steady, essential nature of contract manufacturing. ASML’s specialized EUV tools saw its market cap expand over 7× as chipmakers raced to deploy next-generation lithography.

Analysis

• AI acceleration and cloud-scale GPU deployments drove the explosive late-cycle surge, especially for GPU-centric firms.
• Cyclical pullbacks in 2018 and 2022 highlight broader macro volatility, but the 2023–2025 rebound affirms structural tailwinds behind AI and 5G rollout.
• Foundries and equipment makers deliver smoother compounding vs. designers, offering a defensive anchor in semiconductor portfolios.

Key Takeaways

• NVIDIA’s extraordinary 248× growth cements GPUs as the linchpin of modern AI infrastructure.
• AMD’s comeback story demonstrates the power of competitive product cycles and ecosystem wins.
• TSMC and ASML remain critical “picks and shovels” plays, balancing out higher-beta chip design names.
• Long-term investors can blend high-growth AI plays with must-have manufacturing staples for both alpha and stability.