Analysts initiated coverage of Taiwan Semiconductor Manufacturing Co. (TSMC) with a Strong Buy rating, citing its dominant position in advanced AI chips. TSMC has more than 90% share of the advanced AI chip market. Its Q2 EPS rose 77.4%. Analysts also said that, despite the company’s growth and high margins, its stock trades at a discount to peers.
Taiwan’s Ministry of Economic Affairs confirmed it had approved US$44 billion in TSMC investments in the United States since late 2020. The approval is part of TSMC’s US$265 billion plan for advanced semiconductor fabrication facilities in Arizona and signals continued government support for the company’s global expansion and capital spending.