3 Reasons to Buy TSMC Stock Like There's No Tomorrow

Group 1 - TSMC reported strong sales growth, with a 36% increase in 2025 revenue and a guidance for a further 30% rise in 2026, aiming for a compound annual growth rate of 25% through 2029 [3][4] - The company is highly profitable, with gross margin expanding from 59% in 2024 to 62.3% in 2025, and operating margin increasing from 49% to 54% [5][4] - TSMC benefits from strong AI tailwinds, with high-performance computing (HPC) accounting for 58% of revenue in 2025 and a growth rate of 48% year over year [7][8] Group 2 - Capital expenditures (capex) increased to $41 billion in 2025 from $30 billion in 2024, with plans to raise capex to about $54 billion in 2026, focusing on advanced process technologies [8][4] - The market is optimistic about TSMC's increased capex, as it indicates potential for higher growth [8]