As Apple stock approaches a record high ahead of earnings, here's the options strategy to consider.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 20 2025
0mins
Should l Buy TSM?
Source: MarketWatch
Market Sentiment: Investors are optimistic as markets open, with the S&P 500 only 1% away from its record closing high, despite recent credit concerns and trade tensions.
Government Influence: The positive outlook is bolstered by expectations that the White House will mitigate previous statements that caused market instability, alongside supportive bond yields near 12-month lows.
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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: 336.710
Low
63.24
Averages
313.46
High
390.00
Current: 336.710
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.
AI Spending Surge Boosts Tech Stocks
- Nvidia's Growth Momentum: Nvidia achieved a remarkable 73% growth in Q4 2025, with expectations of 77% growth next quarter, and despite a forward P/E ratio of only 22, this underscores its strong leadership and investment appeal in the AI sector.
- Broadcom's Market Challenge: Broadcom aims to generate $100 billion in revenue by the end of 2027; although its AI chip division accounted for less than half of its total revenue over the past year, this emerging business is expected to dominate future growth, indicating strong investment potential.
- Taiwan Semiconductor's Stable Earnings: As a leading manufacturer of logic chips for high-end devices, Taiwan Semiconductor stands to benefit from increased capital expenditures by AI hyperscalers, highlighting its critical role in the rise of AI technologies and making it a solid investment choice.
- Microsoft and Alphabet's Market Performance: Microsoft’s stock has fallen 25% and is currently trading at its lowest valuation in a decade, presenting a buying opportunity; meanwhile, Alphabet's cloud business has surged with a 48% year-over-year growth, indicating a strong recovery in the AI space that warrants attention.
See More
Analysis of Investment Opportunities in AI Stocks
- Nvidia's Continued Dominance: Nvidia (NVDA) achieved a 73% growth in Q4 2025 and is expected to reach 77% next quarter, with a low P/E ratio of 22, indicating a high investment value that attracts investor interest.
- Broadcom's Growth Potential: Broadcom (AVGO) anticipates its AI chip division will generate $100 billion in revenue by the end of 2027, and despite this division currently accounting for less than half of total revenue, its growth potential is not fully reflected in the market, suggesting a buying opportunity.
- Taiwan Semiconductor's Market Position: Taiwan Semiconductor (TSM), as the primary manufacturer of logic chips for high-end devices, benefits from increased capital expenditures in AI hyperscale data centers, showcasing strong profitability in the AI sector, making it a preferred investment choice.
- Microsoft's Undervalued Stock: Microsoft (MSFT) has seen its stock drop 25% from its all-time high, yet it is currently trading at one of the lowest P/E ratios in a decade, and despite facing short-term pressures, its competitiveness in the AI field remains strong, providing a solid buying opportunity.
See More
AI Market Growth Prospects Highlighted
- Global Economic Impact: PwC forecasts that AI adoption could add 15 percentage points to global GDP by 2035, indicating the profound influence of AI technology on the economy, prompting businesses to strategically position themselves to capitalize on this growth opportunity.
- Semiconductor Market Outlook: The global semiconductor market revenue is projected to exceed $2.8 trillion over the next decade, with TSMC, a key chip manufacturer, expecting its AI accelerator sales to grow at a compound annual growth rate in the mid-to-high 50% range, ensuring its leading position in the market.
- Significant Customer Growth: Since the launch of Palantir's AI platform in 2023, its customer base has increased by 34% to 954, and the number of deals worth over $1 million surged from 55 in 2022 to 180, demonstrating the strong appeal of its software solutions.
- Revenue Growth Potential: Palantir anticipates that the AI software platform market will achieve a 29% CAGR through 2034, with projected revenues reaching $237 billion, positioning Palantir, as an industry leader, to consistently outpace market growth and enhance its long-term profitability.
See More
The Future of Semiconductors and AI
- Market Growth Potential: According to PwC, AI adoption could add 15 percentage points to global GDP by 2035, highlighting the immense potential of the AI market and its profound economic impact.
- TSMC's Leading Position: TSMC anticipates a compound annual growth rate (CAGR) of mid-to-high 50% for AI accelerator sales through 2029, indicating that its dominant position in the semiconductor market will persist, with overall revenue expected to grow at a 25% CAGR.
- Palantir's Customer Growth: By the end of 2025, Palantir had 954 customers, a 34% increase from the previous year, while the number of deals worth over $1 million surged from 55 in Q4 2022 to 180, demonstrating strong market demand for its AI platform.
- AI Software Market Outlook: The AI software platform market is projected to achieve a 29% CAGR through 2034, and with its leading position and rapidly growing customer base, Palantir is well-positioned to sustain robust growth over the next decade.
See More
Surge in Demand for AI Infrastructure
- Current AI Usage in Businesses: According to Motley Fool's research, only 18% of businesses currently utilize AI in their daily operations, with expectations to rise to 22% in the coming months, indicating a rapid adoption trend but still far from an AI-first approach.
- Investment Opportunities in Infrastructure: By 2030, McKinsey projects that approximately $7 trillion in data center capital expenditures will be necessary to meet AI computing demand, while AI hyperscalers are expected to spend about $650 billion this year, highlighting significant investment opportunities in the market.
- Key Stock Recommendations: Nvidia and Taiwan Semiconductor Manufacturing are identified as beneficiaries of ongoing infrastructure build-out, with Nvidia's GPUs becoming the preferred computing units for AI workflows, while TSMC serves as the primary supplier of logic chips needed for various computing devices.
- Microsoft's Growth Potential: Microsoft, with its robust cloud computing platform Azure and a variety of AI application software, is expected to continue driving AI usage growth, making it a premium choice for investors in the AI sector.
See More
Analysis of AI Investment Outlook
- Shifting Market Sentiment: While AI was the premier investment sector from 2023 to 2025, investor sentiment in 2026 is cautious due to the lack of visible returns on capital expenditures, necessitating patience from investors.
- Low AI Adoption Rates: Currently, only 18% of businesses utilize AI in their daily operations, with expectations to rise to 22% in the coming months, indicating rapid adoption but still far from an AI-first approach.
- Infrastructure Investment Needs: McKinsey projects that approximately $7 trillion in data center capital expenditures will be required by 2030 to meet AI computing demands, while AI hyperscalers are expected to spend $650 billion this year, highlighting significant future investment opportunities.
- Recommended Stocks: Nvidia and Taiwan Semiconductor are identified as key beneficiaries of AI infrastructure build-out, with Nvidia's GPUs being the preferred computing unit for AI workflows, while TSMC serves as a neutral investment by supplying chips to various competitors in the AI sector.
See More
AI Spending Surge Boosts Tech Stocks
- Nvidia's Growth Momentum: Nvidia achieved a remarkable 73% growth in Q4 2025, with expectations of 77% growth next quarter, and despite a forward P/E ratio of only 22, this underscores its strong leadership and investment appeal in the AI sector.
- Broadcom's Market Challenge: Broadcom aims to generate $100 billion in revenue by the end of 2027; although its AI chip division accounted for less than half of its total revenue over the past year, this emerging business is expected to dominate future growth, indicating strong investment potential.
- Taiwan Semiconductor's Stable Earnings: As a leading manufacturer of logic chips for high-end devices, Taiwan Semiconductor stands to benefit from increased capital expenditures by AI hyperscalers, highlighting its critical role in the rise of AI technologies and making it a solid investment choice.
- Microsoft and Alphabet's Market Performance: Microsoft’s stock has fallen 25% and is currently trading at its lowest valuation in a decade, presenting a buying opportunity; meanwhile, Alphabet's cloud business has surged with a 48% year-over-year growth, indicating a strong recovery in the AI space that warrants attention.
See More
Analysis of Investment Opportunities in AI Stocks
- Nvidia's Continued Dominance: Nvidia (NVDA) achieved a 73% growth in Q4 2025 and is expected to reach 77% next quarter, with a low P/E ratio of 22, indicating a high investment value that attracts investor interest.
- Broadcom's Growth Potential: Broadcom (AVGO) anticipates its AI chip division will generate $100 billion in revenue by the end of 2027, and despite this division currently accounting for less than half of total revenue, its growth potential is not fully reflected in the market, suggesting a buying opportunity.
- Taiwan Semiconductor's Market Position: Taiwan Semiconductor (TSM), as the primary manufacturer of logic chips for high-end devices, benefits from increased capital expenditures in AI hyperscale data centers, showcasing strong profitability in the AI sector, making it a preferred investment choice.
- Microsoft's Undervalued Stock: Microsoft (MSFT) has seen its stock drop 25% from its all-time high, yet it is currently trading at one of the lowest P/E ratios in a decade, and despite facing short-term pressures, its competitiveness in the AI field remains strong, providing a solid buying opportunity.
See More
AI Market Growth Prospects Highlighted
- Global Economic Impact: PwC forecasts that AI adoption could add 15 percentage points to global GDP by 2035, indicating the profound influence of AI technology on the economy, prompting businesses to strategically position themselves to capitalize on this growth opportunity.
- Semiconductor Market Outlook: The global semiconductor market revenue is projected to exceed $2.8 trillion over the next decade, with TSMC, a key chip manufacturer, expecting its AI accelerator sales to grow at a compound annual growth rate in the mid-to-high 50% range, ensuring its leading position in the market.
- Significant Customer Growth: Since the launch of Palantir's AI platform in 2023, its customer base has increased by 34% to 954, and the number of deals worth over $1 million surged from 55 in 2022 to 180, demonstrating the strong appeal of its software solutions.
- Revenue Growth Potential: Palantir anticipates that the AI software platform market will achieve a 29% CAGR through 2034, with projected revenues reaching $237 billion, positioning Palantir, as an industry leader, to consistently outpace market growth and enhance its long-term profitability.
See More
The Future of Semiconductors and AI
- Market Growth Potential: According to PwC, AI adoption could add 15 percentage points to global GDP by 2035, highlighting the immense potential of the AI market and its profound economic impact.
- TSMC's Leading Position: TSMC anticipates a compound annual growth rate (CAGR) of mid-to-high 50% for AI accelerator sales through 2029, indicating that its dominant position in the semiconductor market will persist, with overall revenue expected to grow at a 25% CAGR.
- Palantir's Customer Growth: By the end of 2025, Palantir had 954 customers, a 34% increase from the previous year, while the number of deals worth over $1 million surged from 55 in Q4 2022 to 180, demonstrating strong market demand for its AI platform.
- AI Software Market Outlook: The AI software platform market is projected to achieve a 29% CAGR through 2034, and with its leading position and rapidly growing customer base, Palantir is well-positioned to sustain robust growth over the next decade.
See More
Surge in Demand for AI Infrastructure
- Current AI Usage in Businesses: According to Motley Fool's research, only 18% of businesses currently utilize AI in their daily operations, with expectations to rise to 22% in the coming months, indicating a rapid adoption trend but still far from an AI-first approach.
- Investment Opportunities in Infrastructure: By 2030, McKinsey projects that approximately $7 trillion in data center capital expenditures will be necessary to meet AI computing demand, while AI hyperscalers are expected to spend about $650 billion this year, highlighting significant investment opportunities in the market.
- Key Stock Recommendations: Nvidia and Taiwan Semiconductor Manufacturing are identified as beneficiaries of ongoing infrastructure build-out, with Nvidia's GPUs becoming the preferred computing units for AI workflows, while TSMC serves as the primary supplier of logic chips needed for various computing devices.
- Microsoft's Growth Potential: Microsoft, with its robust cloud computing platform Azure and a variety of AI application software, is expected to continue driving AI usage growth, making it a premium choice for investors in the AI sector.
See More
Analysis of AI Investment Outlook
- Shifting Market Sentiment: While AI was the premier investment sector from 2023 to 2025, investor sentiment in 2026 is cautious due to the lack of visible returns on capital expenditures, necessitating patience from investors.
- Low AI Adoption Rates: Currently, only 18% of businesses utilize AI in their daily operations, with expectations to rise to 22% in the coming months, indicating rapid adoption but still far from an AI-first approach.
- Infrastructure Investment Needs: McKinsey projects that approximately $7 trillion in data center capital expenditures will be required by 2030 to meet AI computing demands, while AI hyperscalers are expected to spend $650 billion this year, highlighting significant future investment opportunities.
- Recommended Stocks: Nvidia and Taiwan Semiconductor are identified as key beneficiaries of AI infrastructure build-out, with Nvidia's GPUs being the preferred computing unit for AI workflows, while TSMC serves as a neutral investment by supplying chips to various competitors in the AI sector.
See More
