$Taiwan Semiconductor(TSM.US)

TSM released strong earnings report

This quarter's revenue, EPS, net profit, and gross margin all exceeded expectations;

Next quarter's revenue outlook exceeds expectations;

Significantly raised full-year capital expenditure expectations;

Additional $100 billion investment in the US for building four new chip factories

The earnings report performed well, the AI narrative remains strong, although it fell pre-market, it doesn't affect the long-term trend

From a valuation perspective

2026 fiscal year valuation range 230.7-461.4

Although the 419 closing price is not cheap, it is still within a reasonable range, unlike other semiconductor stocks that are severely overvalued

Follow-up:

- It's not expected to fall particularly deep either. If it pulls back below 380 in the short term, it's a good opportunity to get in, but it's unclear if it will give this chance;

- It won't rise particularly fast in the future either, as its market cap has already reached $2.18 trillion, ranking 6th in the US stock market, more likely to move steadily upward

Up 38.7% year-to-date

I believe it's still the second choice among AI long-term investment stocks, with no rivals in the chip manufacturing field!