Taiwan Semiconductor Manufacturing (TSMC) is experiencing strong growth due to high demand for AI and data center expansion. Despite its multiple growth drivers, TSMC is priced at a discount compared to the broader market. The company’s revenue comes primarily from high-performance computing chips, with a recent shift from smartphones to high-end processors.

The rise of artificial intelligence (AI) has reshaped the technological landscape, with nine of the top 10 companies by market cap having ties to this transformative technology. TSMC, a key player in advanced chip production, has seen its market cap surpass $1 trillion due to the demand for high-end processors.

TSMC’s revenue in the third quarter reached $33.1 billion, up 41% year over year, with earnings per ADR at $2.92. The company’s main revenue driver is high-performance computing chips, accounting for 57% of its sales. Despite its strong growth potential, TSMC is attractively priced compared to the S&P 500.

Investors are showing renewed interest in TSMC as the company’s legacy smartphone segment rebounds, now representing 30% of its sales. The success of Apple’s iPhone 17 has contributed to this recovery, with Apple being one of TSMC’s largest customers. TSMC’s stock has become increasingly popular with new shareholders due to its market-leading technology.

Read more at Yahoo Finance: 1 Surprising Way Taiwan Semiconductor Manufacturing (TSMC) Makes Money