Apple is a key customer of TSM and is expected to benefit from TSM's capacity expansion, securing output needed to serve robust customer demand.
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Why Is Everyone Talking About Taiwan Semiconductor Stock? | TSM STock Deep Dive Part 2
Jul 21, 2026
The creator discusses Taiwan Semiconductor Manufacturing Company (TSMC) due to insatiable customer demand and a nearly sold-out manufacturing capacity. Despite warnings of gross margin dilution from new technology and overseas expansion, TSMC has managed to expand margins due to high capacity utilization and full pricing without discounts. The company is investing heavily in expanding capacity based on strong customer commitments for future demand.
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AMD is a key customer of TSM and is expected to benefit from TSM's capacity expansion, securing output needed to serve robust customer demand.
Nvidia is a key customer of TSM and is expected to benefit from TSM's capacity expansion, securing output needed to serve robust customer demand.
TSMC is a primary buy due to insatiable demand, nearly sold-out capacity, and strong customer commitments for future output, despite potential margin headwinds.