3 Stocks I'm Buying After Taiwan Semiconductor's Stellar Announcement

Taiwan Semiconductor Manufacturing (TSM) reported Q2 earnings that beat expectations with 36% revenue growth and a 77% jump in earnings per share, triggering fresh buy recommendations for the chipmaker and two key customers.

The company's CEO projected strong demand extending through 2029-2030, underpinned by AI chip requirements. TSMC is committing $100 billion to expand its Arizona fabrication operations, signaling long-term confidence in North American semiconductor demand.

Analysts at The Motley Fool are now recommending accumulation in three names: TSMC, Nvidia (NVDA), and Broadcom (AVGO). The thesis centers on valuation dislocation—both Nvidia and Broadcom are trading below their all-time highs despite maintaining strong growth forecasts. The argument: pullbacks in chip stocks with intact demand fundamentals create entry points, particularly when the foundry partner validating that demand just posted 36% top-line growth.

The $100 billion Arizona build-out also addresses supply-chain concerns that have weighed on U.S.-listed semiconductor names, potentially reducing geopolitical discount in TSM shares.