1 Reason I Am Buying Taiwan Semiconductor Stock to Hold Forever

Core Viewpoint - TSMC is the world's leading chip manufacturer, holding a dominant market position in the semiconductor industry, particularly in AI chip manufacturing, where it commands a market share in the upper-90% range [2][6]. Group 1: Company Overview - TSMC operates on a foundry model, manufacturing chips on order to meet the specific needs of companies like Apple, Nvidia, and Amazon [4]. - The company requires significant investment, specialized engineers, and world-class plants, making it more efficient for other companies to rely on TSMC rather than building their own manufacturing capabilities [5]. Group 2: Financial Performance - TSMC's market capitalization is $1.5 trillion, with a current stock price of $298.80 [6]. - In the third quarter, TSMC reported revenue of $33.1 billion, with its high-performance computing (HPC) segment, including AI chips, accounting for 57% of this revenue [7]. - Gross margins increased from 57.8% to 59.5%, and operating margins rose from 47.5% to 50.6% in the third quarter [8]. Group 3: Market Position and Future Outlook - TSMC is positioned to benefit from the increasing investments by tech companies in AI infrastructure, as it will supply the chips for the machines built around these systems [7]. - The company's strong foothold in manufacturing for major tech companies provides a solid foundation for long-term growth and stability [10].