There’s no question that Amazon has been a tech dynamo for much of its history, delivering monster returns to long-term investors. However, recent performance has been mixed, with slow growth in key areas like cloud computing and e-commerce.
As part of the “Magnificent Seven,” Amazon’s innovations may be waning under the focus on profitability, leaving room for a rising contender – Taiwan Semiconductor Manufacturing Company (TSMC).
TSMC: The Cornerstone of Technology Innovation
Taiwan Semiconductor Manufacturing, or TSMC, is not just a chip manufacturer; it’s the largest in the world, handling a significant share of advanced chip production. Companies like Apple, Nvidia, and Amazon rely on TSMC for chip manufacturing, underlining its market significance.
In the fourth quarter, TSMC boasted robust financials with high operating income and revenue, showcasing its pricing power and market strength. Its pivotal role in generative AI technology further solidifies its position as a tech giant.
The Case for TSMC in the Elite Club
While not a U.S.-based company, TSMC is listed on the New York Stock Exchange with a market cap surpassing Tesla’s. Its dominance in AI chip supply and consistent revenue growth post-cyclical downturn make it a prime candidate for the Magnificent Seven.
With investors recognizing its strategic importance and the stock soaring, TSMC appears poised to outshine Amazon and its peers. The company’s focus on cutting-edge technology and expansion plans bode well for its future.