Taiwan Semiconductor (NYSE: TSM) is one of the biggest beneficiaries of the artificial intelligence revolution that nobody talks about. It’s making chips for major players, including Nvidia, Broadcom, and Advanced Micro Devices. All of these companies are competing to secure more space in <a href="https://bitcomme.com/a-human-centered-approach-to-data-visualization/” title=”A human-centered approach to data visualization”>data centers. Yet one company stands to benefit regardless of which company ultimately wins in the computing realm: Taiwan Semiconductor.
This makes TSMC the ultimate neutral-party investment, and I think it could be a great pick right now. I think its stock price could skyrocket over the next few years, and easily crush the market along the way.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
The AI boom is far from over
One of the biggest questions investors have with TSMC’s stock is how long the AI build-out will last. This is a fair question, as Taiwan Semiconductor will be negatively affected by falling demand. However, there are a few companies that have as good long-term visibility into potential AI spending as TSMC. It has several key industry sources sharing information, ensuring it has the proper production capacity to meet demand when the time comes.
Apparently, demand is so strong that Taiwan Semiconductor deemed it necessary to invest an additional $100 billion in its Arizona facilities. That’s a big commitment, and Taiwan Semiconductor would only do it if it thought demand would last.
When asked about the longevity of AI demand, CEO C.C. Wei stated that he believed there would be strong chip demand through at least 2029 to 2030. That’s several years of strong growth ahead, and that will bode well for the stock price.
For 2026, Wall Street analysts expect 42% revenue growth, then 32% next year. Those projections are in New Taiwan dollars, and the exchange rate to U.S. dollars could affect these figures. However, for simplicity’s sake, we’ll assume that this exchange rate stays at its current level and that its native currency growth rate translates into U.S. dollar growth. Furthermore, we’ll assign a 30% growth rate to 2028 as well.
