A decade ago, Taiwan Semiconductor Manufacturing (NYSE: TSM | TSM Price Prediction) was respected but boring.
Taiwan's TSMC , the world's largest contract chipmaker, said on Thursday it is confident in its growth over the next few years, driven by robust demand for computing power and advanced semiconductors, as it rides an AI boom.
The latest trading day saw TSMC (TSM) settling at $446.69, representing a +2.54% change from its previous close.
When Google builds custom AI chips to reduce Nvidia dependence, it creates a new TSMC order. So, TSMC captures both sides of the AI architecture competition. Three competing chip CEOs - Nvidia's Jensen Huang, AMD's Lisa Su, and Intel's Lip-Bu Tan - flew to Taiwan separately in late May. TSMC hit a new high at the same time. Management raised in Q1 the long-term gross margin floor to 56% while disclosing what I believe to be the company's biggest dilution schedule.
Broadcom (NASDAQ:AVGO | AVGO Price Prediction) and Taiwan Semiconductor Manufacturing (NYSE:TSM) just reported quarters that put both stocks within striking distance of fresh 52-week highs.
Taiwan Semiconductor Manufacturing (NYSE:TSM | TSM Price Prediction) trades at $412.32, with the stock pressing against a 52-week high of $421.97 after a relentless run powered by AI chip demand.
TSM is ramping 3nm capacity across Taiwan, Arizona and Japan as AI-driven demand stays strong and advanced packaging needs outpace supply.
Few companies dominate their industry like Taiwan Semiconductor Manufacturing NYSE: TSM. The firm is the workhorse that makes the entire artificial intelligence (AI) buildout possible, manufacturing nearly all of the world's most advanced AI accelerators.
In the closing of the recent trading day, TSMC (TSM) stood at $412.32, denoting a +1.93% move from the preceding trading day.
The YieldMax TSM Option Income Strategy ETF delivers high weekly income, with a current yield near 53%, but carries elevated risk and capped upside. TSMY's synthetic option writing strategy lacks direct Taiwan Semiconductor equity ownership, increasing NAV erosion risk and limiting participation in semiconductor sector rallies. TSMY thrives in range-bound TSM environments but underperforms in strong bull markets and is highly vulnerable during downturns, with payouts fluctuating significantly.
Zacks.com users have recently been watching TSMC (TSM) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
TSM commands 72% pure foundry market share and fabricates nearly 99% of AI ASICs for top hyperscalers/customers, demonstrating their durable, multi-year, AI-driven, profitable growth prospects. The foundry has been well buoyed as one of the gatekeepers of AI accelerator chips, with the growing exposure to HPC demand driving their ongoing capacity expansions. Despite the near-term gross margin erosion risks from the overseas expansion, TSM guides excellent FQ2'26 numbers with further expansions likely, thanks to the price hikes.