Taiwan Semiconductor’s (TSM) third quarter results showed just how big the AI boom is getting. The company continues to invest billions to maintain its lead, and these investments are now bringing in steady profits.
Yet, it wasn’t enough to lift the stock. Although TSM shares are up 38% year-to-date (YTD), the broader AI selloff has dragged down the stock the last few days despite a blowout quarter. As TSMC ramps up its costly 2nm technology, expands overseas manufacturing, and prepares for the next wave of AI demand, protecting profit margins could become its next big challenge.