Dear Taiwan Semi Stock Fans, Mark Your Calendars for April 16

The world’s most important chipmaker is set to announce its earnings on April 16. Taiwan Semiconductor Manufacturing Company (TSM) manufactures chips for companies like Nvidia (NVDA) and Apple (AAPL), in addition to hyperscalers investing heavily in AI. For years, the company’s core business revolved around iPhones, tablets, and PCs. Since the emergence of AI, things have changed, and people are only now starting to see how much of an impact AI is having on companies’ business models.

Taiwan Semi's business can currently be separated into two segments. The AI part of the business manufactures chips at cutting-edge nodes (5nm, 3nm) using advanced packaging techniques. This is a high-margin business, which is currently capacity-constrained. Then there is the part that serves smartphones and PCs and involves legacy nodes like 28nm and 16nm, among others. This legacy business isn’t firing on all cylinders like the AI one, and this could soon become very relevant.