Investment Opportunities in Industrial Stocks for the Next Decade
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 13 hours ago
0mins
Should l Buy TSM?
Source: Fool
- Semiconductor Industry Leader: Taiwan Semiconductor Manufacturing (TSMC) holds a dominant position in advanced semiconductor manufacturing, with a 20% year-over-year revenue growth last year, and is set to invest $165 billion to expand its U.S. capacity, ensuring its market leadership as AI demand surges over the next decade.
- High Profitability Performance: TSMC achieved a 54% operating margin in Q4 2025, significantly outperforming most software companies, showcasing its strong profitability in high-end manufacturing, and is poised to benefit from the skyrocketing chip demand driven by the AI revolution in the coming decade.
- Defense Contract Stability: Lockheed Martin's defense contracts can last for decades, providing predictable cash flows for shareholders through projects like the F-35 fighter jet, with a record backlog of $194 billion ensuring stable future revenues.
- Diverse Growth Opportunities: Lockheed Martin's participation in the $185 billion Golden Dome project and the increase of its missile defense system capacity from 600 to 2,000 units annually highlight the company's potential for growth across multiple sectors amid rising global conflicts.
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Analyst Views on TSM
Wall Street analysts forecast TSM stock price to fall
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 341.490
Low
63.24
Averages
313.46
High
390.00
Current: 341.490
Low
63.24
Averages
313.46
High
390.00
About TSM
Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based integrated circuit foundry service provider. The Company is primarily engaged in integrated circuit manufacturing services. It offers advanced process technologies, specialised process solutions, advanced photomask and silicon stacking, and packaging-related technologies, while supporting a comprehensive design ecosystem. The Company's products serve diverse electronic sectors including artificial intelligence, high-performance computing, wired and wireless communications, automotive and industrial equipment, personal computing, information applications, consumer electronics, smart internet of things, and wearable devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
TSMC to Begin Mass Production of 3nm Chips in Japan by 2028
- Advanced Process Expansion: TSMC plans to start mass production of 3nm chips at its Kumamoto facility in Japan by 2028, targeting a monthly capacity of 15,000 12-inch wafers, marking Japan's first domestic production of 3nm chips and enhancing its competitiveness in high-performance computing and AI.
- Significant Investment: The investment for the second fab plant has reached $17 billion, primarily supported by substantial Japanese government subsidies, reflecting TSMC's commitment to the Japanese market and its strategy to diversify production amid geopolitical risks.
- Notable Technology Upgrade: The upgrade from the initially planned 6-12nm processes to the advanced 3nm technology significantly expands semiconductor manufacturing capabilities, addressing the surging demand for AI chips and laying the groundwork for future electronic products.
- Deepening Strategic Cooperation: The project's advancement is bolstered by the trust between Taiwan and Japan, with TSMC CEO CC Wei announcing the initiative during talks with Japan's PM Sanae Takaichi in 2026, further solidifying bilateral cooperation in the semiconductor sector.
See More
Semiconductor Stocks Face Supply and Geopolitical Risks
- Supply Chain Bottleneck: TSMC, holding a 72% share of the global semiconductor foundry market, faces limitations in AI chip supply due to energy disruptions and helium shortages, potentially hindering its ability to meet rising market demand and impacting its competitive position.
- Revenue Growth and Seasonal Fluctuations: In January 2026, TSMC's revenue surged 37% year-over-year, while February saw a 22% increase; however, February's revenue dropped 21% sequentially from January, primarily due to seasonal factors, indicating strong underlying AI demand.
- Rising Geopolitical Risks: The ongoing Iran conflict has disrupted global energy flows, with the Strait of Hormuz handling 20% of global oil and LNG shipments, posing a potential threat to TSMC's production as Taiwan relies on 95% energy imports.
- Future Outlook: TSMC is set to report March 2026 sales on April 10, and if it demonstrates the ability to meet global AI demand despite tightening supply conditions, it could positively influence investor confidence.
See More
TSMC Faces Supply Chain Challenges and Geopolitical Risks
- Market Share and Sales Data: TSMC holds a 72% share of the global foundry market and is set to report its March 2026 sales on April 10, which will provide investors with real-time insights into the company's ability to meet AI demand amid the ongoing Iran conflict.
- AI Demand Growth: In January 2026, TSMC's revenue surged 37% year-over-year, while February revenue grew 22% year-over-year, with combined revenue for January and February increasing nearly 30% year-over-year, indicating strong AI-driven demand, although February revenue fell 21% sequentially from January due to seasonal factors.
- Supply Chain Bottlenecks: Broadcom has flagged that capacity constraints at TSMC are emerging as a key bottleneck in the AI supply chain, as the surging demand for advanced chips increasingly restricts the speed at which that demand can be fulfilled.
- Geopolitical Risks: The ongoing Iran conflict has disrupted global energy flows, particularly through the Strait of Hormuz, affecting TSMC's production since Taiwan imports nearly 95% of its energy needs, with natural gas accounting for almost 48% of its electricity generation.
See More
Taiwan Semiconductor Not Among Top Investment Picks
- Investment Recommendation Omission: Despite being regarded as one of the best manufacturing companies globally, Taiwan Semiconductor Manufacturing was not included in The Motley Fool's latest list of top 10 stocks, indicating a cautious market sentiment regarding its future performance.
- Historical Return Comparison: The Motley Fool's Stock Advisor has achieved an average return of 914% since inception, significantly outperforming the S&P 500's 184%, suggesting the potential profitability of its recommended stocks, and Taiwan Semiconductor's absence may undermine investor confidence.
- Competitive Market Pressure: With the rise of AI technologies, the demand for semiconductors is increasing, and as an industry leader, Taiwan Semiconductor faces competitive pressures from companies like Nvidia and Intel, which could impact its market share and profitability.
- Investor Community Impact: The Motley Fool's emphasis on individual investors highlights the power of retail investors, and Taiwan Semiconductor's exclusion from the top picks may lead to a decline in attention among retail investors, potentially affecting its stock price performance.
See More
Nvidia Projects $1 Trillion in Sales by 2027
- Surging Sales Projections: Nvidia CEO Jensen Huang announced at the 2026 GTC event that the company expects lifetime sales of its current-generation Blackwell chips and next-generation Vera Rubin chips to reach $1 trillion by the end of 2027, indicating significant future growth potential.
- Significant Revenue Growth: Analysts predict Nvidia's revenue for FY 2027 will hit $369 billion, a 71% year-over-year increase, with FY 2028 expected to reach $480 billion, reflecting strong demand and market share expansion in the AI sector.
- Market's Tepid Response: Despite Huang's robust sales forecast indicating strong growth potential, the market has reacted lukewarmly, with Nvidia's stock price declining since the announcement, suggesting investors may be underestimating the company's long-term growth prospects.
- Investment Opportunity Emerges: Currently, Nvidia's P/E ratio stands at 35, significantly higher than the S&P 500's 23.8, indicating that the market expects 2026 to be a strong year while overlooking Nvidia's long-term profitability in AI development, prompting investors to consider buying while the stock remains undervalued.
See More
Semiconductor Company Dominates Manufacturing Excellence
- Industry Leadership: This semiconductor company is regarded as the best manufacturing company globally, consistently leading industry development through its exceptional production capabilities and technological innovations, thereby enhancing its market competitiveness.
- Stock Performance: As of the afternoon of March 30, 2026, the company's stock price showed strong performance, reflecting the market's high recognition of its future growth potential and further solidifying investor confidence.
- Technological Innovation: The company's ongoing innovations in manufacturing processes enable it to maintain a leading position in a fiercely competitive market, driving overall technological advancements in the industry.
- Market Outlook: With the continuous growth in global semiconductor demand, the company is expected to achieve significant revenue growth in the coming years, further strengthening its market share and profitability.
See More
TSMC to Begin Mass Production of 3nm Chips in Japan by 2028
- Advanced Process Expansion: TSMC plans to start mass production of 3nm chips at its Kumamoto facility in Japan by 2028, targeting a monthly capacity of 15,000 12-inch wafers, marking Japan's first domestic production of 3nm chips and enhancing its competitiveness in high-performance computing and AI.
- Significant Investment: The investment for the second fab plant has reached $17 billion, primarily supported by substantial Japanese government subsidies, reflecting TSMC's commitment to the Japanese market and its strategy to diversify production amid geopolitical risks.
- Notable Technology Upgrade: The upgrade from the initially planned 6-12nm processes to the advanced 3nm technology significantly expands semiconductor manufacturing capabilities, addressing the surging demand for AI chips and laying the groundwork for future electronic products.
- Deepening Strategic Cooperation: The project's advancement is bolstered by the trust between Taiwan and Japan, with TSMC CEO CC Wei announcing the initiative during talks with Japan's PM Sanae Takaichi in 2026, further solidifying bilateral cooperation in the semiconductor sector.
See More
Semiconductor Stocks Face Supply and Geopolitical Risks
- Supply Chain Bottleneck: TSMC, holding a 72% share of the global semiconductor foundry market, faces limitations in AI chip supply due to energy disruptions and helium shortages, potentially hindering its ability to meet rising market demand and impacting its competitive position.
- Revenue Growth and Seasonal Fluctuations: In January 2026, TSMC's revenue surged 37% year-over-year, while February saw a 22% increase; however, February's revenue dropped 21% sequentially from January, primarily due to seasonal factors, indicating strong underlying AI demand.
- Rising Geopolitical Risks: The ongoing Iran conflict has disrupted global energy flows, with the Strait of Hormuz handling 20% of global oil and LNG shipments, posing a potential threat to TSMC's production as Taiwan relies on 95% energy imports.
- Future Outlook: TSMC is set to report March 2026 sales on April 10, and if it demonstrates the ability to meet global AI demand despite tightening supply conditions, it could positively influence investor confidence.
See More
TSMC Faces Supply Chain Challenges and Geopolitical Risks
- Market Share and Sales Data: TSMC holds a 72% share of the global foundry market and is set to report its March 2026 sales on April 10, which will provide investors with real-time insights into the company's ability to meet AI demand amid the ongoing Iran conflict.
- AI Demand Growth: In January 2026, TSMC's revenue surged 37% year-over-year, while February revenue grew 22% year-over-year, with combined revenue for January and February increasing nearly 30% year-over-year, indicating strong AI-driven demand, although February revenue fell 21% sequentially from January due to seasonal factors.
- Supply Chain Bottlenecks: Broadcom has flagged that capacity constraints at TSMC are emerging as a key bottleneck in the AI supply chain, as the surging demand for advanced chips increasingly restricts the speed at which that demand can be fulfilled.
- Geopolitical Risks: The ongoing Iran conflict has disrupted global energy flows, particularly through the Strait of Hormuz, affecting TSMC's production since Taiwan imports nearly 95% of its energy needs, with natural gas accounting for almost 48% of its electricity generation.
See More
Taiwan Semiconductor Not Among Top Investment Picks
- Investment Recommendation Omission: Despite being regarded as one of the best manufacturing companies globally, Taiwan Semiconductor Manufacturing was not included in The Motley Fool's latest list of top 10 stocks, indicating a cautious market sentiment regarding its future performance.
- Historical Return Comparison: The Motley Fool's Stock Advisor has achieved an average return of 914% since inception, significantly outperforming the S&P 500's 184%, suggesting the potential profitability of its recommended stocks, and Taiwan Semiconductor's absence may undermine investor confidence.
- Competitive Market Pressure: With the rise of AI technologies, the demand for semiconductors is increasing, and as an industry leader, Taiwan Semiconductor faces competitive pressures from companies like Nvidia and Intel, which could impact its market share and profitability.
- Investor Community Impact: The Motley Fool's emphasis on individual investors highlights the power of retail investors, and Taiwan Semiconductor's exclusion from the top picks may lead to a decline in attention among retail investors, potentially affecting its stock price performance.
See More
Nvidia Projects $1 Trillion in Sales by 2027
- Surging Sales Projections: Nvidia CEO Jensen Huang announced at the 2026 GTC event that the company expects lifetime sales of its current-generation Blackwell chips and next-generation Vera Rubin chips to reach $1 trillion by the end of 2027, indicating significant future growth potential.
- Significant Revenue Growth: Analysts predict Nvidia's revenue for FY 2027 will hit $369 billion, a 71% year-over-year increase, with FY 2028 expected to reach $480 billion, reflecting strong demand and market share expansion in the AI sector.
- Market's Tepid Response: Despite Huang's robust sales forecast indicating strong growth potential, the market has reacted lukewarmly, with Nvidia's stock price declining since the announcement, suggesting investors may be underestimating the company's long-term growth prospects.
- Investment Opportunity Emerges: Currently, Nvidia's P/E ratio stands at 35, significantly higher than the S&P 500's 23.8, indicating that the market expects 2026 to be a strong year while overlooking Nvidia's long-term profitability in AI development, prompting investors to consider buying while the stock remains undervalued.
See More
Semiconductor Company Dominates Manufacturing Excellence
- Industry Leadership: This semiconductor company is regarded as the best manufacturing company globally, consistently leading industry development through its exceptional production capabilities and technological innovations, thereby enhancing its market competitiveness.
- Stock Performance: As of the afternoon of March 30, 2026, the company's stock price showed strong performance, reflecting the market's high recognition of its future growth potential and further solidifying investor confidence.
- Technological Innovation: The company's ongoing innovations in manufacturing processes enable it to maintain a leading position in a fiercely competitive market, driving overall technological advancements in the industry.
- Market Outlook: With the continuous growth in global semiconductor demand, the company is expected to achieve significant revenue growth in the coming years, further strengthening its market share and profitability.
See More
