Taiwan Semiconductor Manufacturing Stock Jumps On Robust AI Chip Demand. Is It Time to Sell or Double Up on the Stock?

Taiwan Semiconductor Manufacturing (NYSE: TSM) shares jumped after the semiconductor contract manufacturer once again reported strong quarterly results and issued an upbeat outlook. The stock is up around 70% over the past year, as of this writing.Given its strong performance, let's look at its recent results to see whether now is the time to take profits, or whether investors should double up on buying the stock.Demand for artificial intelligence (AI) chips remains insatiable. This can be seen not only in TSMC's strong revenue growth, but in the fact that it also projected that its capital expenditure (capex) this year would rise to between $52 billion and $56 billion. That was way ahead of analyst expectations for just shy of $41 billion in 2026 capex, and demonstrates the company's conviction that the ongoing AI data center buildout will continue long into the future. Management said that leading cloud computing companies are signaling that their strong spending will continue, and that customers are continually seeking more capacity to help meet their growing demand. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool