TSMC Emerges as Premier AI Chip Play Amid Surging Data Center Demand
Taiwan Semiconductor Manufacturing Co. dominates advanced processor production while trading at compelling valuations. Shares have delivered 225% returns over five years, trailing only Nvidia among AI-focused equities.
The chipmaker's Q3 earnings beat expectations with NT$325.3 billion ($10.1 billion) net income, fueled by insatiable demand for AI accelerators. Management projects mid-40% CAGR growth for data center revenue through 2029.
"AI demand continues to exceed our most aggressive forecasts," CEO C.C. Wei noted during the earnings call. The company's technological leadership in cutting-edge nodes positions it as the invisible backbone of the AI revolution.