$TSM $TSMon $SOXL The only 'shovel seller' in the AI industry - Why TSMC has the highest certainty (US stock AI company series analysis 1)
If Nvidia is the 'spear' of AI, TSMC is the 'root'. No matter who wins in the endgame of AI, one thing is certain: TSMC is coasting to victory.
Almost 99% of AI accelerator chips come from TSMC. Nvidia, AMD, Google TPU, Meta MTIA - all of them without exception. Market share is 72%, with Samsung in second place at just 7%. This gap isn't just 'leading'; it's 'monopolistic'.
TSMC only does foundry work; it doesn't design or compete with clients for business. All the AI giants are both competitors and customers - that position is just too cozy.
Apple, Nvidia, and Amazon design their own chips, but they all end up needing TSMC to manufacture them. By Q1 2026, the gross margin is expected to soar to 66.2%, a historical high. This isn’t about squeezing clients; it’s about pricing power from a tech monopoly.
Even if AI cools off, there’s no fear: high-end chips from Apple, Tesla, and Broadcom still need TSMC to produce.
This expansion isn't betting on continued AI demand exploding; it's wagering on an ironclad rule - advanced chips must be manufactured, and only TSMC can do it globally. The 2nm process is already in large-scale production, with yield rates steadily improving, while Intel's 18A still struggles uphill.
Revenue is projected at 122 billion in 2025, a 36% annual increase. The expected compound growth rate for EPS over the next three years is 32.8%, with a PEG of only 0.82 times, indicating valuation is below growth speed. Currently, the biggest risk for the company is not being caught up technologically, but geopolitical factors. #AI
If Nvidia is the 'spear' of AI, TSMC is the 'root'. No matter who wins in the endgame of AI, one thing is certain: TSMC is coasting to victory.
Almost 99% of AI accelerator chips come from TSMC. Nvidia, AMD, Google TPU, Meta MTIA - all of them without exception. Market share is 72%, with Samsung in second place at just 7%. This gap isn't just 'leading'; it's 'monopolistic'.
TSMC only does foundry work; it doesn't design or compete with clients for business. All the AI giants are both competitors and customers - that position is just too cozy.
Apple, Nvidia, and Amazon design their own chips, but they all end up needing TSMC to manufacture them. By Q1 2026, the gross margin is expected to soar to 66.2%, a historical high. This isn’t about squeezing clients; it’s about pricing power from a tech monopoly.
Even if AI cools off, there’s no fear: high-end chips from Apple, Tesla, and Broadcom still need TSMC to produce.
This expansion isn't betting on continued AI demand exploding; it's wagering on an ironclad rule - advanced chips must be manufactured, and only TSMC can do it globally. The 2nm process is already in large-scale production, with yield rates steadily improving, while Intel's 18A still struggles uphill.
Revenue is projected at 122 billion in 2025, a 36% annual increase. The expected compound growth rate for EPS over the next three years is 32.8%, with a PEG of only 0.82 times, indicating valuation is below growth speed. Currently, the biggest risk for the company is not being caught up technologically, but geopolitical factors. #AI