Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides complementary metal oxide silicon wafer fabrication processes to manufacture logic, mixed-signal, radio frequency, and embedded memory semiconductors. The company also offers customer support and engineering services, as well as manufactures masks. Its products are used in high performance computing, smartphone, Internet of things, automotive, and digital consumer electronics. The company was incorporated in 1987 and is headquartered in Hsinchu City, Taiwan.

Taiwan Semiconductor remains a high-quality business with very strong operational efficiency, but the market is already pricing in an almost perfect scenario. Across all key profitability metrics, the company is noticeably above the industry: ROE of 38.57%, ROA of 26.43%, ROI of 30.67%, operating margin of 56.05%, and net margin of 46.46% look exceptional and continue to improve year after year. Gross margin of 64.20% is also high and rising, confirming sustainable pricing power and a technological advantage. Revenue, operating profit, net income, EBITDA, and equity are all growing steadily, which supports the fundamental valuation and reduces the risk of structural deterioration in the business. The balance sheet looks comfortable: cash on hand of 114.1 billion, a current ratio of 2.46, and a quick ratio of 2.25 indicate good liquidity, while debt/equity of 0.16 points to a moderate debt burden. At the same time, debt does not appear to be a problem, as it is declining relative to capital, while equity and assets continue to grow. The weak point of the valuation is the extremely expensive multiples: P/E of 40.47, P/S of 17.48, P/B of 11.53, and P/FCF of 61.52 are significantly above industry medians, which limits the potential for further re-rating. Dividend yield is virtually absent, so the investor is essentially relying almost entirely on earnings growth and multiple expansion rather than current cash income. In this setup, the strong fundamentals are already largely reflected in the price, and for a one-year horizon it is more prudent to remain cautious. The overall assessment remains positive in terms of business quality, but the target price warrants a moderately conservative downward adjustment due to the elevated market valuation and limited margin of safety.

TSM-12.26

Taiwan Semiconductor Manufacturing Company Ltd.

Сильный индекс, незначительно упал. Быки в растерянности.

Strong index, slightly down. The bulls are confused.

Сильный индекс, без изменений. Медведи в растерянности.

Strong index, flat. The bears are confused.

Сильный индекс, значительно вырос. Рынок на стороне быков.

Strong index, significantly up. The market is on the bulls' side.

Сильный индекс, значительно упал. Рынок не поддерживает медведей.

Strong index, significantly down. The market does not support the bears.

Слабый индекс, незначительно упал. Приток средств в лонги остается на невысоком уровне.

Weak index, slightly down. The inflow of funds into longs remains at a low level.

Слабый индекс, незначительно вырос

TSM demonstrates outstanding profitability and growth, but it is trading at very high multiples, so the potential for revaluation has largely already been exhausted.

Key Points
SpaceX makes up over half of Harvard's public equity portfolio and is a massive bet on the future.
TSMC is a great way to play the AI infrastructure boom, while Cerebras is focused on the inference market.
Amazon and Alphabet are two of the world's leading cloud computing companies, with strong growth ahead.
Harvard University has the largest academic endowment in the world, valued at nearly $68 billion. While the endowment invests in approximately 15,000 funds, it also holds individual stocks, with 75% of its public equity portfolio held in five AI stocks.
Let's take a closer look at these stocks to see if this is a genius move or a risky bet.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
1. Space Exploration Technologies
Space Exploration Technologies (NASDAQ: SPCX) -- otherwise known as SpaceX -- is Harvard's largest individual stock holding by a wide margin, representing over 52% of its public equity portfolio. Note, however, that this $2.2 billion investment would only account for about 3% of its total endowment. As such, the investment looks like a much smarter, less risky bet than it may appear on the surface.
SpaceX is very much an investment focused on the future, with ambitious goals including putting data centers in space, Earth-to-Earth cargo transport, asteroid mining, and even colonizing Mars. The company's reusable rockets have helped change the economics of space launches, and it is now trying to adapt that technology to its larger Starship rocket, opening up a whole new world of possibilities.
With bets on space, AI infrastructure, AI coding, AI models and applications, and satellite internet, SpaceX has huge growth potential, making it a solid stock to own.
2. Taiwan Semiconductor Manufacturing
If you want to invest in the AI infrastructure build-out without picking a chip technology winner, Taiwan Semiconductor Manufacturing (NYSE: TSM) is a great option. It currently accounts for more than 8% of Harvard's stock portfolio.
TSMC is the world's leading manufacturer of advanced logic chips, including graphics processing units (GPUs), custom AI accelerators, and central processing units (CPUs). The company has a near-monopoly in advanced chip manufacturing and strong pricing power, making it one of the best ways to play the data center build-out.
3. Cerebras Systems
Cerebras Systems (NASDAQ: CBRS) makes up nearly 6% of Harvard's stock portfolio and is an interesting bet on the future of inference technology. The company's wafer-sized chips are 30 times faster than GPUs for inference and six times faster than Groq's language processing units (LPUs). Meanwhile, the company has a large commitment from OpenAI.
However, given the high cost of SRAM (static random-access memory) and the specialized power management and cooling required, Cerebras' systems are expensive and are currently viewed as a high-end niche solution. If its superior technology can break into the mainstream, the stock could have some huge upside, with the inference market projected to become much larger than the one from AI model training.
4. Amazon
Amazon (NASDAQ: AMZN) is Harvard's fourth-largest individual stock holding, accounting for over 5.5% of its public equity portfolio, and the university increased its position by over a third during Q2. The company operates the world's largest cloud computing and e-commerce businesses, and both segments have been firing on all cylinders.
Amazon Web Services (AWS), Amazon's cloud computing unit, is seeing strong revenue growth driven by AI demand, and with a nearly $500 billion backlog and massive infrastructure investments, growth should continue to accelerate in the coming years. Meanwhile, the company's investments in AI and robotics are driving incredible operating efficiency in its e-commerce operations, resulting in robust profit growth. This makes the stock a top option to own.
5. Alphabet
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) rounds out Harvard's top-five stock holdings, accounting for nearly 4% of its portfolio. Alphabet is the most complete AI company, having both a top-tier foundational model and world-class AI chips.
Alphabet's Tensor Processing Units (TPUs) are one of the company's biggest advantages, allowing it to train its AI models and run inference at significantly lower cost than competitors. This also gives the company some of the best cloud computing economics, with a one-year payback on its chip and networking investments when it uses its TPUs. Meanwhile, it feeds AI models directly into its Google Search platform, where it has a huge distribution and monetization edge. This makes Alphabet a top AI stock to own over the long haul.
Should you buy stock in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $350,756!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,363,905!*
Now, it’s worth noting Stock Advisor’s total average return is 922% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 22, 2026.
Geoffrey Seiler has positions in Alphabet and Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

Harvard's Endowment Has 75% of Its Stock Portfolio in 5 AI Stocks. Genius Move or Dangerous Trap?

Key Points
Nvidia leads in general purpose GPUs, while Broadcom provides custom chips.
AMD and Cerebras both have big opportunities in the inference market.
TSMC is at the center of many of the biggest trends in AI infrastructure.
Semiconductor stocks have come under pressure as investors question the durability of the AI infrastructure build-out, driven by financing concerns alongside uncertain AI utility and revenue projections. Gartner recently projected that AI revenue would not be able to support the current build-out and that the neocloud market would collapse by 2030.
However, cloud computing companies are seeing insatiable demand for AI infrastructure and seeing strong returns on their chip and networking investments. Even historically conservative companies like ASML Holding and Taiwan Semiconductor Manufacturing (NYSE: TSM) have aggressively expanded their capacity to keep pace with surging demand for their machines and services. This would point to the current AI boom having a long, continued runway.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
With the stocks under pressure, let's look at five semiconductor stocks to buy on the dip.
Nvidia
Nvidia (NASDAQ: NVDA) is the primary company fueling the AI boom with its graphics processing units (GPUs). These are the main chips used to run AI workloads, and as a result, Nvidia continues to see surging growth. Meanwhile, the company has created a wide moat in the chip market for AI training, as most original AI code was written on its CUDA software platform and optimized for its GPUs.
The stock trades at a forward price-to-earnings (P/E) of just above 13.5 based on estimates for fiscal 2028 (ending January 2028), That makes it a steal at these levels if the AI infrastructure boom continues.
Broadcom
While Nvidia dominates the merchant AI accelerator market, Broadcom (NASDAQ: AVGO) is the go-to company in the custom AI chip market. Hyperscalers have been increasingly designing their own custom chips to lower costs, and one of the main companies they turn to for help in developing these AI ASICs (application-specific integrated circuits) is Broadcom. Among its customers are Alphabet, Anthropic, OpenAI, and Meta Platforms. With surging demand, Broadcom sees its custom chip revenue quadrupling to $230 billion over the next two years. With the stock trading at a forward P/E of 11 times fiscal 2028 estimates, the stock is a buy.
Advanced Micro Devices
Advanced Micro Devices (NASDAQ: AMD) is riding two powerful waves in inference and agentic AI. Its chiplet GPUs, which can be packaged with more memory, are great for inference, and the company has gotten large GPU commitments from OpenAI, Meta Platforms, and Anthropic for its GPUs. At the same time, AMD is seeing demand surge for its central processing units (CPUs), given the rise of agentic AI. Given its enormous growth opportunities ahead, the stock looks like a buy on the recent dip.
Cerebras Systems
Arguably the highest risk-reward name on the list is Cerebras Systems (NASDAQ: CBRS). Its wafer-sized SRAM-based chips provide lightning-fast speeds for inference. The company claims its systems provide 30 times the inference speeds versus GPUs and are six times faster than Nvidia's Groq-based language processing units (LPUs). However, they are also pricey and are only sold as part of a complete system due to their power consumption management and cooling requirements.
The company has signed a large deal with OpenAI and has formed a partnership with AMD on a disaggregated solution where its system handles the important decode phase of inference. If the company's systems can break into the mainstream, the stock could have huge upside. The recent dip, meanwhile, has sent the stock below its recent IPO price.
Taiwan Semiconductor Manufacturing
As the largest foundry in the world, Taiwan Semiconductor Manufacturing is responsible for manufacturing the vast majority of advanced logic chips, including GPUs, custom AI ASICs, and CPUs. As such, it is riding the same trends that every other company on this list is benefiting from right now. At the same time, as the only chip manufacturer that has consistently shown it can make these advanced chips at high yields (low defect rates) at scale, it has become a vital cog in the semiconductor value chain while commanding strong pricing power.
At a forward P/E of 18 based on 2027 analyst estimates, the stock is attractively valued and a buy on this semiconductor sector pullback.
Should you buy stock in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $380,363!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,315,732!*
Now, it’s worth noting Stock Advisor’s total average return is 919% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 19, 2026.
Geoffrey Seiler has positions in Advanced Micro Devices, Alphabet, and Broadcom. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Alphabet, Broadcom, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Semiconductor Sell-Off: 5 Stocks to Buy on the Dip

Key Points
Taiwan Semiconductor's AI growth outlook is simply incredible.
Its current stock pricing indicates massive upside potential.
Anyone who has invested in the artificial intelligence (AI) space for a while knows how good of an AI investment Taiwan Semiconductor Manufacturing (NYSE: TSM) is. However, TSMC just proved it once again with another blowout quarter, driven by impressive AI demand.
Still, the stock declined during the day after earnings were reported, so the market clearly wasn't impressed. But I think this has more to do with the generic market outlook rather than the quality of TSMC's results, as it proved once again how strong a business it is and gave a rosy outlook.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
I think this makes TSMC one of the top AI stocks to buy now, and if you don't own any shares, now is a perfect time to buy.
Taiwan Semiconductor just raised future expectations
Taiwan Semiconductor is a giant in the chip world. When you hear about companies like Nvidia (NASDAQ: NVDA) or Apple (NASDAQ: AAPL) having their own chips, that's partially true; they do. However, those two only design the chips; the actual fabrication work is outsourced to companies like Taiwan Semiconductor.
Taiwan Semiconductor is by far the largest chip foundry in the world, and handles nearly all of the volume Nvidia, Apple, and many others have. This gives Taiwan Semiconductor exposure to nearly all parts of the tech economy, which is clearly booming right now thanks to the massive ongoing AI buildout.
The biggest growth catalyst TSMC is feeling is from the AI segment, and a while back gave guidance that AI-related chip revenue would grow at a 50% compound annual growth rate (CAGR) from 2024 to 2029. An analyst on the TSMC Q3earnings callasked for updated guidance regarding this outlook, and CEO C.C. Wei had this to say:
All I can say right now is the demand is very extremely robust, OK? And we did not see any sign of slowdown whether it's high 50% CAGR, it doesn't matter, it probably will be higher.
Clearly, there's robust demand that's rapidly expanding, and Wei noted that guidance may have been an under-projection, which is great news for shareholders. All of this adds up to TSMC's great Q3 results, which resulted in 51% revenue growth in New Taiwan Dollars, but due to currency exchange rates, a 41% growth in US dollars. Profits grew at a faster rate, rising 69% year over year.
Those are impressive results for any company, and with the AI buildout showing no signs of slowing down, TSMC just showcased once again that it's an incredible business. But is its stock a great buy now?
TSMC's stock is primed to move higher
As we inch closer to 2027, I think valuing stocks based on 2027 estimates is starting to be a good idea. From this standpoint, TSMC now trades for 18 times next year's earnings.
Currently, the stock trades for 27 times trailing earnings. So, if TSMC hits all analyst expectations during 2027 and its valuation stays at 27 times earnings, that implies that TSMC's stock will rise 50% next year. Now, whether that occurs or not is a different question, but that is what the math is indicating.
As long as the AI buildout outlook looks strong into 2028 and 2029 (which TSMC confirmed in its conference call), I think the outlook for TSMC's stock continues to look very bright. We're still in the early innings of the AI buildout, and TSMC is one of the best ways to invest in the AI arms race as a whole. Its dominance in the chip fabrication industry cannot be denied, and as long as the AI buildout is ongoing, TSMC will continue to report impressive results, making it a great buy now.
Should you buy stock in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $380,363!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,315,732!*
Now, it’s worth noting Stock Advisor’s total average return is 919% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 18, 2026.
Keithen Drury has positions in Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Taiwan Semiconductor Just Proved Why It's a Top AI Investment

Key Points
TSMC plans to spend $60 billion to $64 billion on new factories and equipment this year.
Management expects spending through 2028 to be significantly higher than the prior three years.
New factories outside Taiwan could negatively impact margins, but the record quarter and spending plans point to more revenue.
Taiwan Semiconductor Manufacturing (NYSE: TSM) plans to spend $60 billion to $64 billion this year on new factories and equipment. That's a lot of cash going out the door, with capital spending totaling a third of trailing-12-month revenue. But for the world's largest chipmaker, it's a signal that more growth is coming.
On the Oct. 15earnings call CFO Wendell Huang tied spending to long-term demand from customers, including the emerging market for agentic AI -- autonomous software that completes tasks on its own. He also said spending from 2026 through 2028 should be significantly higher than in the previous three years.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
TSMC is chasing demand. Third-quarter revenue hit a record $46.7 billion, up 41% year over year, and management expects fourth-quarter revenue of $52.3 billion to $54.3 billion. CEO C.C. Wei said the gap between demand and supply remains "quite big." Huang added that if TSMC executes, revenue growth should outpace the increase in capital spending.
This is TSMC's scale at work. Even with investment in equipment to expand chipmaking capacity, it reported a stellar 51.1% profit margin in the third quarter, up from 45.7% in the year-ago quarter.
Geopolitical risks in Asia remain. TSMC continues to invest in building new factories in Taiwan, while expanding overseas to diversify its operations. However, overseas plants in places like Arizona cost more to run and may weigh on future margins.
Still, the strong quarter and investment plans point to years of growth ahead, which makes the stock a buy for long-term investors. Taiwan Semiconductor stock is trading at 19 times 2027 earnings estimates, with the consensus estimate calling for earnings to grow 28% next year.
Should you buy stock in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $380,363!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,315,732!*
Now, it’s worth noting Stock Advisor’s total average return is 919% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 18, 2026.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

TSMC Is Spending up to $64 Billion This Year. Here's Why That's Great News for Investors.

Key Points
TSMC is a leader in chip manufacturing, and the AI boom has driven tremendous growth.
The company is optimistic about the future, based on recently observed trends.
When we think of the artificial intelligence (AI) boom, we might first think of the chip players making the headlines, from Nvidia to Advanced Micro Devices. We know them for the high-powered graphics processing units (GPUs) that fuel critical AI tasks such as the training and inference of models.
But those chips can't make it to commercialization without another company, and that's Taiwan Semiconductor Manufacturing (NYSE: TSM). TSMC is the manufacturer that makes most of today's leading chips, as it holds more than 70% of the global chip foundry market. So while Nvidia, AMD, and others design the chips, TSMC actually brings them from the drawing board to reality.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
All of this has created tremendous growth for TSMC, and the latest earnings report illustrates this. Last week, the company reported record profit for the sixth straight quarter. How does this translate into stock performance? My prediction is that $1,000 invested in TSMC today will be worth this much by 2030...
TSMC's market leadership
Before we dive into those numbers, though, let's take a deeper look at TSMC. As mentioned, the company is the global leader in the foundry market, so it produces most of the chips in high demand today. This means that TSMC may benefit from the successes of all of the leading chip players -- not just one or two. And this positions the company very well for significant growth as the AI boom continues.
A look at the recent quarter illustrates the picture. In the third quarter, TSMC reported profit and revenue that surpassed analysts' estimates and forecast fourth-quarter revenue in the range of $52.3 billion and $54.3 billion. At the midpoint, that represents a 58% year-over-year increase.
TSMC's gross margin has declined slightly, and the company forecasts a decrease of 40 basis points to 66% at the midpoint for the fourth quarter. But it's important to keep in mind the reason behind that, and it's linked to growth. TSMC's ramp-up of its 2 nm technology, or next-generation manufacturing process, initially weighs on margins, and the company is also seeing pressure from the costs of its U.S. fabs. But productivity gains should offset this to a certain degree over time.
Importantly, TSMC chief C.C. Wei emphasized the ongoing strength of the AI market. "Recent developments are very positive to AI's long-term demand outlook," he said, noting the increasing adoption of agentic AI and the greater use of open-source AI models.
Estimates call for a 30% increase in EPS
Now, let's consider how that may translate into stock performance. TSMC has climbed more than 300% over the past three years and today trades at about $422, or 27x trailing 12-month earnings. A look at earnings per share estimates for TSMC over the coming few years shows a 30% increase from year to year.
If the 30% growth trend continues, the company's earnings per share may total more than $38 in 2030.
That leaves room for the stock price to climb more than 135% to $1,000, as at that level, the stock would trade at a price-to-earnings ratio of 26. And market capitalization would reach $5 trillion. This is about the size of Nvidia right now, which is the biggest company by market value. In such a scenario, we could imagine other technology giants also increasing in market value.
Considering all of this, my prediction is that $1,000 invested in TSMC today could be worth $2,350 by 2030. Of course, this is built on the assumption that earnings growth continues at a particular pace. In the quarters to come, we could see certain variations of this scenario, from a lower-margin situation due to foundry expansion to higher demand that may drive greater revenue.
But given TSMC's leadership in the manufacturing space and the long-term AI growth picture, there's reason to be optimistic about the growth of a $1,000 investment in this chip giant.
Should you buy stock in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $380,363!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,315,732!*
Now, it’s worth noting Stock Advisor’s total average return is 919% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 18, 2026.
Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

Prediction: $1,000 Invested in Taiwan Semiconductor Today Will Be Worth This Much by 2030

Key Points
Musk has called Taiwan Semiconductor one of Tesla's most important partners.
Micron already works with the automaker and sees a huge opportunity in robotics and memory demand.
Panasonic has a long relationship in manufacturing batteries for Musk's vehicles and could get involved with robotics as well.
Elon Musk has big plans for Tesla (NASDAQ: TSLA) that go well beyond electric vehicles (EVs). The Tesla CEO has suggested that the company's Optimus humanoid robot could eventually become its most important product, with applications ranging from factory work to household chores. But turning that vision into a profitable business will require enormous investments in computing power, memory, and batteries.
Tesla is working toward commercial production of Optimus, and the EV maker's bulls, including Cathie Wood at Ark Invest, believe it could be a huge opportunity for the stock. And as Tesla works toward commercial production, some of its established technology partners will likely start reaping the rewards, even before the first Optimus robot hits the market.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Here are three of those stocks worth watching.
1. Taiwan Semiconductor Manufacturing
Many investors swear by the "Magnificent Seven" group of tech stocks, but I think Taiwan Semiconductor Manufacturing (NYSE: TSM) may be better than any of them. TSMC, as it's known for short, is the world's largest chip manufacturer, producing advanced semiconductors for every member of the Magnificent Seven, including Tesla.
In the EV company'searnings callin July, Musk highlighted TSMC as one of his important chipmaking partners. And that relationship could become increasingly valuable as it develops Optimus, which will need powerful processors to interpret visual information, make decisions, and control its movements.
In TSMC's just-released earnings report for the third quarter, the company reported revenue of $46.72 billion, up 41% from a year ago. Even more importantly, advanced chips manufactured using processes of seven nanometers or smaller accounted for 79% of the company's wafer revenue. Those are precisely the types of manufacturing technologies that make it valuable to companies developing increasingly sophisticated AI processors.
Tesla's plans to develop its own chip manufacturing capacity could eventually create competition for TSMC. But building advanced semiconductor factories is extraordinarily expensive and technically demanding. For now, TSMC is collecting revenue from the AI computing boom while Tesla works on getting Optimus into customers' hands.
2. Micron Technology
If processors are the brains of humanoid robots, memory is what enables those brains to process information quickly enough to perform useful tasks.
That's where Micron Technology (NASDAQ: MU) comes in. It makes dynamic random-access memory (DRAM), high-bandwidth memory (HBM), and storage products essential to AI computing. Musk specifically thanked Micron during Tesla's Julyearnings callfor providing a substantial memory allocation to the company despite tight industry supplies.
And the opportunity extends well beyond Tesla. Micron CEO Sanjay Mehrotra has identified humanoid robotics as a potential source of future memory demand. In the company's fiscal fourth-quarterearnings call Mehrotra said that autonomous vehicles can require more than 200 gigabytes of memory and multiple terabytes of storage, and that humanoid robots could have comparable requirements.
That's a lot of memory for a machine that might eventually fold laundry or work in a warehouse.
3. Panasonic
Panasonic (OTC: PCRFF) has a long-standing relationship with Tesla, manufacturing lithium-ion batteries for its vehicles. And that expertise could become valuable in humanoid robotics.
Optimus will need rechargeable batteries that can deliver enough power to operate its motors, processors, and sensors without making the robot too heavy. And Panasonic has extensive experience producing high-performance battery cells.
The company is an established Tesla battery supplier, but a specific agreement to provide batteries for Optimus hasn't been publicly confirmed. The biggest question instead is whether Panasonic can turn its battery manufacturing experience into meaningful robotics revenue.
The bottom line
Musk believes Optimus could eventually become one of Tesla's biggest businesses, and Ark Invest's Wood is among the legions of Tesla bulls who agree. But it will take years of engineering, investment, and production before the robots begin coming off the assembly line and are available for commercial sale.
TSMC, Micron, and Panasonic already have established businesses serving Tesla or the broader AI market, and they seem perfectly situated to benefit from the work on Optimus.
Missed AI’s "Act 1"? Act 2 Could Be 14x Bigger
Most investors think they missed the AI boat because they didn't buy Nvidia in 2005.
But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout, a massive technology build-out that Google’s CEO says could be more profound than fire or electricity.
While everyone watches the chip designers, one "backbone" company provides the critical technology that Nvidia and AMD literally cannot function without. We’ve detailed this under-the-radar player in our new AI Playbook.
Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool has a disclosure policy.

Elon Musk Says Optimus Is Tesla's Most Important Product. These 3 Suppliers Get Paid Before Tesla Does.

Key Points
Nvidia is the king of AI and set to see continued strong growth in the years ahead.
Broadcom is poised to see huge growth from its custom chip business.
TSMC has a near monopoly and is positioned to be one of the biggest AI infrastructure winners.
If you're looking to build a portfolio of artificial intelligence (AI) stocks with $3,000, you can't go wrong with buying shares of Nvidia (NASDAQ: NVDA), Broadcom (NASDAQ: AVGO), and Taiwan Semiconductor Manufacturing (NYSE: TSM). With that amount, you could buy five shares of Nvidia, three of Broadcom, and two of TSMC for under $3,000.
If the AI infrastructure build-out continues, I think that investment could be worth over $9,000 by the end of 2030, a more-than-threefold return in a little over four years. The biggest risk, of course, is an AI slowdown, but right now, growth appears robust, and demand for AI chips outstrips supply. Let's look at how an investment in these three top AI stocks could triple.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Nvidia is the AI king with its graphics processing units (GPUs), and it looks well-positioned to remain a big winner in the space over the next few years. The company continues to grow rapidly and has already forecast a 70% increase in revenue next fiscal year.
Analysts currently project that Nvidia's revenue will climb to nearly $1.2 trillion in its 2031 fiscal year (ending in January 2031) and its adjusted earnings per share (EPS) will hit $28.79.
However, Nvidia has consistently cruised past analyst estimates over the past few years, and I think that will continue. Based on my own estimates, the company could generate over $1.9 trillion in revenue in fiscal 2031 and deliver adjusted earnings of almost $41.50 per share.
Metric
Fiscal 2027
Fiscal 2028
Fiscal 2029
Fiscal 2030
Fiscal 2031
Revenue
$412 billion
$700 billion
$1.05 trillion
$1.47 trillion
$1.91 trillion
Revenue growth
90%
70%
50%
40%
30%
Gross profit
$309 billion
$518 billion
$767 billion
$1.06 trillion
$1.34 trillion
Adjusted operating expense
$35 billion
$53 billion
$81 billion
$123 billion
$186 billion
Operating income
$274 billion
$465 billion
$686 billion
$936 billion
$1.15 trillion
Net income
$233 billion
$395 billion
$583 billion
$796 billion
$979 billion
EPS
$9.66
$16.74
$24.69
$33.70
$41.47
I find Nvidia's stock cheap, and think it could rerate higher to a forward P/E multiple of 20 in the coming years. If it can reach my projections, that would value the stock at $830, representing a nearly fourfold increase. Meanwhile, those five shares would be worth $4,150 in 2030.
Hyperscalers are increasingly turning to custom AI chips to lower costs, and the company they frequently enlist to develop these chips is Broadcom. As a result, the semiconductor company has some of the best growth opportunities in the AI infrastructure space. It also has some great visibility given the roadmap for these design projects, forecasting that its custom chip business will double next fiscal year, then double again the following year to $230 billion.
Analysts currently anticipate the company will earn $52.15 per share in fiscal 2031 (ending October). Place a 20-times forward P/E multiple on the stock, and it would trade at $1,043 in 2030, triple its current price. Three shares would then be worth over $3,100.
Taiwan Semiconductor Manufacturing
With sales of GPUs, custom AI accelerators, and central processing units (CPUs) all expected to surge in the coming year, Taiwan Semiconductor Manufacturing is poised for strong growth over the next five years and beyond. The company is the world's largest foundry and has a virtual monopoly on manufacturing the most advanced logic chips powering AI data centers. If AI spending continues to soar, its stock will follow.
The furthest-out EPS consensus for the stock is $28.03 in 2028, but if we project another 25% EPS growth in 2029, 20% in 2030, and another 15% in 2031, that would bring the adjusted EPS target to roughly $48.35 in 2031. Place a 20-times forward P/E on the stock, and it would be worth $967 in 2030, more than double its current price. Two shares, meanwhile, would be worth over $1,900.
Should you buy stock in Broadcom right now?
Before you buy stock in Broadcom, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Broadcom wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $380,363!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,315,732!*
Now, it’s worth noting Stock Advisor’s total average return is 919% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 17, 2026.
Geoffrey Seiler has positions in Broadcom. The Motley Fool has positions in and recommends Broadcom, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

$3,000 Split Across Nvidia, Broadcom, and TSMC Could Be Worth This Much by 2030

Key Points
Full-year 2026 revenue is expected to grow around 44%.
Annual capacity for 2-nanometer chips will more than double in 2027.
Full-year 2026 capital expenditures will reach $60 billion to $64 billion.
On its third quarter of 2026earnings call held on Oct. 15, 2026, Taiwan Semiconductor Manufacturing (NYSE:TSM) projected full-year 2026 revenue growth of around 44% in U.S. dollar terms. Sustained global demand for leading-edge semiconductors gives the chipmaker pricing power and revenue visibility through multiyear capital cycles. Expanding physical manufacturing capacity ensures the company captures expanding artificial intelligence workloads while shielding market share from foundry rivals. Three takeaways from the call highlight its strategic trajectory.
1. Production Capacity for Next-Generation 2-Nanometer Chips Will Double by 2027
The 2-nanometer (N2) chip production node represents the leading edge of semiconductor manufacturing, providing higher processing speed and lower energy consumption. Doubling N2 output secures technical leadership as global customers demand advanced silicon for artificial intelligence (AI) software and smartphone applications.
N2 is ramping successfully in multiple phases at both Hsinchu and Kaohsiung site. We expect our N2 family technologies annual capacity to more than double in 2027, supported by strong demand from both smartphone and HPC AI applications.
-- C.C. Wei, Chairman and Chief Executive Officer
2. Unprecedented Factory Expansion Keeps Competitors From Stealing Market Share
Management maintains high spending on capital expenditures (CapEx), or investments in manufacturing facilities and machinery, to construct nearly 20 chip fabrication plants (fabs) globally. Rapid facility expansion allows the company to absorb rising market demand while preventing competing foundries from capturing market share.
We are moving full speed ahead to increase our capacity to meet our assessed demand, and stepping up our CapEx investment to support our customers' future growth. TSMC is expanding at unprecedented pace with a nearly 20 fabs worldwide in progress.
-- C.C. Wei, Chairman and Chief Executive Officer
3. The Transition to Agentic Artificial Intelligence Is Accelerating Chip Demand
Artificial intelligence software is transitioning from basic conversational chatbots to autonomous agentic systems that execute complex multi-step workflows. This structural shift increases processing workloads, which requires larger quantities of high-performance computing (HPC) chips.
The AI market continues to be very strong. Recent developments are very positive to AI's long-term demand outlook. We observe increasing AI demand fueled by the rising adoption of agentic AI as we transition from chatbot to AI assistance.
-- C.C. Wei, Chairman and Chief Executive Officer
Looking Ahead
Chip demand across artificial intelligence and mobile platforms stretches capacity, and management isn't hiding its satisfaction. Scale advantages and customer integration strengthen its competitive moat.
With our technology leadership, manufacturing excellence, global capacity expansion, and customer trust, we are well-positioned to capture the full multi-year structural AI-related demand.
-- C.C. Wei, Chairman and Chief Executive Officer
Expanding overseas plants requires careful cost control to protect long-term margins.
Overall, with our fundamental competitive advantages of manufacturing technology leadership and large-scale production base, we are confident that TSMC continues to be the most cost-efficient manufacturer in every region that we operate.
-- Wendell Huang, Senior Vice President and Chief Financial Officer
Should you buy stock in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $391,581!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,780!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 16, 2026.
The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

Taiwan Semiconductor Manufacturing: 3 Key Takeaways for Long-Term Investors

Key Points
Taiwan Semiconductor Manufacturing (TSMC) has a virtual monopoly on manufacturing advanced AI chips.
TSMC has leaned on its pricing power to increase profits and expand its margins.
Momentum from the current AI infrastructure build-out should continue through the next few years.
Taiwan Semiconductor Manufacturing (NYSE: TSM) has been one of the best-performing big tech stocks over the past three years, up 380%. That's better than every "Magnificent Seven" stock in that time, and it hasn't shown many signs of slowing down. As of this writing, it's up over 45% for the year.
Although it's not often considered a typical AI stock, TSMC's latest run is largely driven by the ongoing AI boom. As the world's largest semiconductor (chip) foundry, TSMC is as valuable to the AI ecosystem as virtually any company in the mix. And that's why I'm confident a $5,000 investment in the stock could grow to $8,000 by 2030. Let's take a deeper dive.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
So, what exactly does TSMC do?
TSMC is the go-to chip manufacturing company for many of the electronics we use daily. While companies like Apple design their iPhone chips, Nvidia designs chips for its data center hardware, and Broadcom designs chips for its networking equipment, they all rely on TSMC to actually manufacture them.
No company has TSMC's expertise, results, and scale, so it's in a league of its own. It has a 73% market share in the foundry market, but its share of advanced AI chips is well into the upper 90% range. It has been using that to its advantage, too.
The data centers that AI hyperscalers like Amazon, Microsoft, Alphabet, and Meta Platforms are spending trillions to build are filled with advanced chips made by TSMC. So, no matter which of those companies pulls ahead in the AI race, TSMC will continue to benefit. That's a lucrative position to be in.
Profits continue to flow
TSMC's virtual monopoly has given it lots of pricing power. Companies either pay a premium for chips they know will be high-performance and meet the required scale, or go with a less efficient alternative and risk performance. TSMC's market shows which option companies generally choose.
Its revenue growth over the past few years has been impressive (up 33.7% year over year in the second quarter), but earnings growth has been even more explosive.
Over the same three-year span, its gross margin rose from 54.1% to 67.7%, operating margin from 42% to 60.3%, and net profit margin from 37.8% to 55.6%.
How much a $5,000 investment could be worth by 2030
For illustration, let's assume TSMC's stock price remains flat through the rest of 2026. That means the stock would need to grow 60% from 2027 to 2030, averaging 17% returns per year. Right now, TSMC is a $2.3 trillion company trading at 26.5 times its projected 2027 earnings, which is on the high end of its average over the past three years.
If we assume this holds steady over three years, TSMC would need to grow its earnings per share (EPS) by around 15.6% annually. That's more than feasible for a company that has grown by 198% over the past three years. Current estimates put TSMC's year-over-year EPS growth well above that for the next couple of years, but even if it cuts back modestly to 20% after, a $5,000 investment can easily grow to $8,000. And 20% is on the low end of what I expect the growth to be.
AI is fueling TSMC's current momentum, but its business goes beyond that. Even if AI momentum slows over the next three or so years, TSMC's business is broad and deep enough to keep thriving. Margins would likely take a hit, but I don't imagine the company or investors would harp on it too much.
We can't predict how stock prices will move -- and good business or financial performance doesn't guarantee good stock price performance -- but I think TSMC's stock still has enough momentum to turn $5,000 into $8,000 by 2030.
Should you buy stock in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $380,795!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,390,634!*
Now, it’s worth noting Stock Advisor’s total average return is 946% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 14, 2026.
Stefon Walters has positions in Apple, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Broadcom, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

Prediction: $5,000 Invested in Taiwan Semiconductor Could Be Worth This Much by 2030

Key Points
ASML has a virtual monopoly on extreme ultraviolet (EUV) lithography systems for chip manufacturing.
EUV machines are accounting for a larger share of ASML’s sales.
ASML and Taiwan Semiconductor are partnering to make the most advanced EUV systems even more efficient.
Even near an all-time high, Nvidia (NASDAQ: NVDA) remains one of the best artificial intelligence (AI) growth stocks. It's evolved from a chip company that primarily made graphics processing units (GPUs) for data centers into an AI infrastructure linchpin. Its rack-scale solution goes far beyond GPUs to capture a larger share of the data center market.
Hyperscalers continue to turn to Nvidia to address their compute needs. On its second-quarter 2026 earnings call, Space Exploration Technologies (NASDAQ: SPCX) noted that Nvidia's Vera Rubin architecture is so advanced that it warrants SpaceX building exclusively on Nvidia.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
SpaceX is working with financial institutions to raise $40 billion to fund its AI build-out. And Nvidia is making compute demands more affordable for AI start-ups, labs, and enterprises by partnering with a consortium of six financial institutions to build $500 billion in AI infrastructure.
Vera Rubin and financing options for compute pave the way for Nvidia's growth runway. But ASML (NASDAQ: ASML) could be an even better AI stock for investors to buy in October. Here's why.
The first stop along the AI value chain
ASML sits upstream along the AI value chain. It makes deep-ultraviolet (DUV) and extreme-ultraviolet (EUV) lithography machines for chip manufacturing. Lithography is arguably the most important step, and although other companies compete with ASML on DUV, no company in the world comes close to EUV, especially with its advanced high numerical aperture (High-NA) EUV machines.
EUV machines will be increasingly needed to manufacture advanced AI logic and memory chips at scale. AI models and applications are driving demand for AI compute supporting the build-out of AI data centers, which are outfitted with GPUs, central processing units, memory chips, and associated networking infrastructure. These are manufactured by AI fabs like those operated by Taiwan Semiconductor Manufacturing (NYSE: TSM), Samsung Electronics, and Intel (NASDAQ: INTC), which buy ASML machines.
In this vein, semiconductor equipment manufacturers like ASML, KLA, Applied Materials, and Lam Research are among the simplest ways to bet on increased demand for AI chip manufacturing. But ASML is the best buy of the group because its innovation is outpacing the industry.
High-NA is a game changer for ASML
The reason EUV systems are vital for AI chip manufacturing is that they produce wavelengths over 14 times shorter than DUV. Shorter wavelengths produce smaller features on microchip layers in a single pass. Denser features per layer allow manufacturers to fit more transitions or a single chip, thereby boosting performance. High-NA EUV takes that precision a step further by using even shorter wavelengths of 8 nanometer (nm) versus 13.5 nm for Low-NA EUV and 193 nm for DUV.
In the second quarter of fiscal 2026, ASML reported 3.8 billion euros in EUV system sales compared to 2.8 billion euros in non-EUV system sales. All but one of those EUV system sales were Low-NA EUV. The High-NA unit that was sold went to Intel, which is now using High-NA for its most advanced products.
Investors need to understand that High-NA EUV adoption is still in the early stages. It took ASML a decade of research and development to crack the code on High-NA EUVs, with the first unit shipped to Intel in December 2023.
It's only been 13 months since SK Hynix (NASDAQ: SKHY) assembled the first High-NA EUV system for commercial chip production. The High-NA EUV system will help SK Hynix manufacture next-generation dynamic random access memory (DRAM) memory chips at scale in South Korea.
However, one challenge with High-NA is that its exposure field is half the size of Low-NA EUV's. It takes twice as many exposures to pattern a single wafer because High-NA optics are magnified much more than Low-NA optics. It's kind of like how high-resolution cameras use lenses to magnify a portion of an image but would need to stitch together different zoomed-in fragments on a single field for an ultra-precise picture.
ASML's solution is to operate High-NA at double the speed of Low-NA's wafer stage and quadruple the speed of Low-NA's reticle stage -- allowing passes to be completed much faster. But the full potential of High-NA is still effectively being held back.
But not for long. On Sept. 8, ASML and Taiwan Semiconductor announced a collaboration to transition from 6-inch photomasks to 12-inch photomasks to increase manufacturing efficiency and lower costs. By expanding the exposure field, 12-inch masks would allow complex chips to be printed in a single pass rather than stitched together -- thereby addressing the greatest drawback of High-NA compared to Low-NA.
ASML and Taiwan Semiconductor hope to establish a 12-inch mask pilot line by 2031, supporting advanced-node manufacturing by 2033. The transition to 12-inch masks unlocks the full efficiency benefits of High-NA and will give AI chip fabs even more incentive to install High-NA systems.
Thinking seven years ahead
ASML is the best AI growth stock to buy in October because it is just beginning to reap the rewards of over a decade of research and development on High-NA. And switching to 12-inch photomasks allows High-NA to address the manufacturing demands of next-generation AI chips.
ASML already has a virtual monopoly on EUV, but staying ahead of the adoption curve ensures that it keeps its lead over the competition. This is precisely the kind of moat that long-term investors look for when building a growth stock investment thesis.
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Daniel Foelber has positions in ASML and Nvidia. The Motley Fool has positions in and recommends ASML, Applied Materials, Intel, KLA, Lam Research, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Taiwan Semiconductor Manufacturing Company Ltd.

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