$Taiwan Semiconductor Manufacturing(TSM)$ I have topped up again!
Why many long-term investors remain bullish
TSMC has several characteristics that are difficult to replicate:
* Dominant leadership in advanced semiconductor manufacturing.
* Extremely high switching costs for customers.
* Essential supplier to virtually every major AI chip designer.
* Strong pricing power as demand exceeds supply.
* Multi-year visibility into AI-related capital spending.
Latest bullish news
1. Another blockbuster earnings beat
TSMC reported very strong Q2 2026 results, with revenue growing about 36% year-over-year and gross margin approaching 68%, reflecting exceptional demand for AI chips. Management also maintained confidence in continued AI-driven growth.
2. AI demand remains far stronger than supply
The company continues to benefit from explosive demand from customers including Nvidia, Apple, AMD and Broadcom. Advanced packaging (CoWoS) and leading-edge nodes remain capacity constrained, giving TSMC significant pricing power.
3. Potential price increases
Reports indicate TSMC plans to increase foundry prices by as much as 10% beginning in 2027. The market’s positive reaction suggests investors believe customers have little choice but to accept higher prices because TSMC remains technologically unmatched.
4. Massive expansion continues
TSMC is investing heavily in Arizona and other global fabs while expanding advanced packaging capacity. Despite the enormous capex, AI demand has remained strong enough to support these investments.
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