$Taiwan Semiconductor(TSM.US)
TSMC’s biggest challenge isn’t demand. It’s turning growth into sustainable profits. ASML’s latest update points to strong long-term chip demand, but expanding capacity comes at a cost.
My Trade:
I’m holding TSM. The earnings beat matters less to me than whether TSMC can sustain its tech lead and turn AI demand into profitable growth.
Strong historical cash flow gives me confidence, but I’m watching 2nm ramp-up costs, margins, and capex closely.
Takeaway:
Strong demand means little without attractive returns. I can tolerate volatility, but patience shouldn't mean ignoring risks.
What matters most to you: revenue growth, gross margins, or management’s capacity outlook?
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