Taiwan Semiconductor Manufacturing (NYSE: TSM) might not get as much attention as Nvidia or Palantir Technologies, but TSMC, as the chip-manufacturing giant is also known, continues to look like a big winner in the artificial intelligence (AI) boom.
Since the beginning of 2023, roughly when ChatGPT was launched, the stock is up 252%, and the business has delivered smashing results on both the top and bottom lines. Its revenue has grown rapidly. Its margins have expanded, and it has stretched its competitive advantage. As the world’s largest semiconductor manufacturing company, it’s become an even more valuable partner for chip designers like Nvidia that rely on it for manufacturing.
TSMC’s strong growth rate has continued through the year as its revenue jumped 34% in August, and the company is guiding for $31.8 billion to $33 billion in revenue for the third quarter with an operating margin of 45.5% to 47.5%.