Taiwan Semiconductor: Capex Guidance Raise Suggests AI Buildout Cycle Until 2028

Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) has seen a significant stock increase of 75%, outperforming the S&P 500, highlighting its critical role in the semiconductor industry as a foundational supplier [1]. Group 1: Company Performance - TSMC's stock performance has been exceptional, with a 75% increase since the last coverage, indicating strong investor confidence [1]. - The company's role as a "pick-and-shovel" provider in the semiconductor sector emphasizes its importance in the technology supply chain [1]. Group 2: Investment Strategy - The investment approach focuses on identifying market asymmetries that offer a positive reward-to-risk ratio, particularly in high-quality companies with strong cash flow [1]. - The emphasis is on investing in companies that have a wide economic moat and trade at fair prices relative to their intrinsic value [1].