Ignore the Foundry Fears and Keep Buying Taiwan Semi Stock

The artificial intelligence (AI) boom is creating a massive race for computing power, and that is turning semiconductor foundries into some of the most important businesses in the world. Some companies may design the chips powering AI. But foundries are the companies that actually manufacture them at scale. And right now, no company dominates that space more than Taiwan Semiconductor ADR (TSM).

TSM builds the world’s most advanced chips for the biggest tech companies, which is why investors have closely watched rising fears around the foundry industry lately. Some worry competitors could slowly catch up as governments pour billions into domestic chip manufacturing. Others fear aggressive industry expansion could eventually create oversupply.