- Many household devices rely on semiconductors to function properly, with Taiwan Semiconductor Manufacturing (TSMC) being the leading chip manufacturer.
- TSMC operates on a foundry model, manufacturing chips based on orders from companies like Apple, Nvidia, and Amazon.
- TSMC dominates the market for manufacturing AI chips, with a market share well into the upper-90% range.
- TSMC’s high-performance computing segment, including AI chips, accounted for 57% of its $33.1 billion revenue in the third quarter.
- TSMC’s leadership position has given it pricing power, resulting in increased gross and operating margins.
- Despite the importance of AI chips, TSMC’s diverse client base makes it a strong long-term investment.
- While TSMC has been a solid performer, it wasn’t included in the Motley Fool’s list of top 10 stocks to buy now.
- The Motley Fool Stock Advisor has a history of identifying stocks with significant returns, with an average total return of 985% compared to 195% for the S&P 500.
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Read more at NASDAQ: 1 Reason I Am Buying Taiwan Semiconductor Stock to Hold Forever