Taiwan Semiconductor Manufacturing Company Limited: A Top AI Stock to Buy on the Dip

Taiwan Semiconductor Manufacturing Company Limited (TSM) is a top AI stock to buy on the dip, according to Lucas Downey from MoneyFlows. The company is a major beneficiary of Trump tariffs and onshoring, and its yield, throughput, and consistency are unmatched by any other foundry. TSM is a big theme and AI stalwart in the industry with a forward PE basis that is not super expensive.

Title: Taiwan Semiconductor Manufacturing Company (TSM) Surpasses $1 Trillion Market Capitalization

Taiwan Semiconductor Manufacturing Company (TSMC) has achieved a significant milestone by surpassing a $1 trillion market capitalization, becoming the first Asian company to do so since China's PetroChina in 2007. This remarkable feat underscores TSMC's dominant position in the global semiconductor industry, driven by strong demand for advanced computer chips essential for AI tasks.

The semiconductor giant has seen a 50% surge in its stock price since its April low, reaching a valuation that rivals that of Berkshire Hathaway and could soon place it among the world's top 10 most valuable companies. The growth in TSMC's market capitalization is attributed to an optimistic outlook and robust demand for advanced semiconductor technologies, particularly those used in AI applications.

TSMC's recent quarterly earnings report further bolstered investor confidence. The company reported quarterly net sales of $30.07 billion (933.79 billion New Taiwanese dollars), up 38.6% year-over-year (Y/Y), topping the analyst consensus estimate of $30.04 billion. Net income and earnings per share were $398.27 billion New Taiwanese dollars and 15.36 New Taiwanese dollars per share (or $2.47), up by 60.7% Y/Y, topping the analyst consensus estimate of $2.37. In U.S. dollar terms, revenue growth was 44.4% Y/Y and up by 17.8% quarter-over-quarter (Q/Q) [2].

The company's Chairman, C.C. Wei, announced a significant increase in the company's investment in U.S. chip manufacturing in March, committing an additional $100 billion to three fabrication plants in Arizona. This new commitment comes in addition to the $65 billion previously pledged in April 2024 [3].

TSMC's success in reaching the $1 trillion market cap milestone is a testament to its leadership in the semiconductor industry and its ability to capitalize on the growing demand for AI technologies. As the company continues to invest in advanced process technologies and expand its manufacturing capacity, it is well-positioned to maintain its dominant position in the global technology ecosystem.

References:
[1] https://www.gurufocus.com/news/2984955/tsm-stock-surges-as-taiwan-semiconductor-ups-annual-revenue-outlook
[2] https://www.ainvest.com/news/tsmc-market-capitalization-hits-1-trillion-ai-boom-2507/
[3] https://www.cnbc.com/2025/07/17/taiwan-semi-tsmc-stock-chip-production.html