TSMC

TSM

Market cap $1.58T

TSMC, the world's largest manufacturer of advanced artificial intelligence chips, is set to post a 28% jump in third-quarter profit to reach a record high due to surging demand for AI infrastructure, though U.S. tariffs may complicate its outlook.

Alphabet was a top contributor to portfolio performance during the quarter, as the Company's AI initiatives are driving strong growth in their advertising and cloud computing businesses. Taiwan Semiconductor Manufacturing Company was also a leading contributor to performance during the third quarter (as well as the past few years). Copart detracted from performance despite +12% growth in gross profit dollars and a +24% increase in earnings per share.

Similar to artificial intelligence (AI) investing, quantum computing offers investors a wide range of options. There are quantum computing pure plays that give investors massive upside in exchange for risk.

Taiwan Semiconductor Manufacturing Company Limited reports earnings on Thursday. The AI craze has reached a new peak, with TSM as one of the primary beneficiaries. The company's dominant market position and wide moat make TSM a stock to own for a long time.

Chip foundry company Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) could highlight strength for the semiconductor sector when the company reports third-quarter financial results before the market opens on Thursday.

Riding a wave of unprecedented demand for next-gen AI chips, Taiwan Semiconductor is expected to post record Q3 results on Thursday, October 16.

TSM's Q3 revenues are likely to reflect the benefits of surging demand for advanced AI chips, while rising operation costs may have weighed on profitability.

Kevin Mahn, President and CIO of Hennion & Walsh Asset Management, says TSMC is his top pick as AI demand surges, volatility offers buy-the-dip chances, and U.S.–China trade tensions stay key.

The biggest chipmakers in the world, including Nvidia (NVDA 2.83%) and Broadcom (AVGO 9.94%), rely on just one manufacturer to make their high-end semiconductors.

The world's largest semiconductor foundry, Taiwan Semiconductor Manufacturing (TSM 8.01%), fabricates chips for the leading chip designers across the globe. It also happens to be one of the hottest stocks on the market over the past six months.