The Best Day to Buy the Chipmaker King VIEW IN BROWSER BY JASON BODNER, EDITOR, QUANTUM EDGE PRO Most of what you need to know about today’s company can be summed up in one sentence: It’s the world’s leading advanced AI chip manufacturer. The biggest and best-known semiconductor companies in the world rely on it to make their most cutting-edge chips – Advanced Micro Devices (AMD), Apple (AAPL), NVIDIA (NVDA), Intel (INTC), and more. In fact, it produces more than 90% of the most advanced semiconductors on earth. Talk about dominance. I’m talking about Taiwan Semiconductor (TSM). Every single iPhone since the iPhone 7 model from 2016 uses chips manufactured exclusively by TSM. Apple also wouldn’t have its popular M-series chips in its current MacBooks without TSM. And if Taiwan Semi suddenly ceased to exist, many industries would grind to a screeching halt – gaming, cloud computing, even artificial intelligence, to name just a few. I could go on, but I think you get my point. Taiwan Semiconductor keeps the world running. It all began 38 years ago when Dr. Morris Chang peered into the future and foresaw the need for a company dedicated to manufacturing computer chips. Instead of designing chips, his new company would focus only on making them for other companies. It quickly became the heart of the semiconductor industry, and it remains so today by constantly innovating and keeping up with the rapid advancements in chip design and technology. At the moment, TSM is the leading company mass-producing 3-nanometer chips – meaning the transistors packed on a chip are 3 nanometers in size. That’s smaller than the human eye can see! This impossibly small scale of manufacturing enables more chips on a transistor, which results in more powerful and more efficient chips. And this impossibly small scale is somehow getting smaller and better. TSM is already working on mass-production of 2-nanometer technology, which it says is on track before the end of this year. So, we know this company is a king in its industry, but let’s take a closer look at the financials and what my Quantum Edge system has to say. | Recommended Link | | | | America lost 90,000 factories and became a nation of consumers, not producers. But Trump’s reshoring initiative is changing everything fast. Investing legend Louis Navellier has identified specific companies positioned to benefit – and 20 to avoid. Click here for his complete research. |  |
A Stellar Business You don’t often find a company valued at more than $1 trillion that continues growing by leaps and bounds. But that’s possible in the world we’re in where technology is accelerating like never before. Sales grew 30% in 2024 and averaged 18.3% annual growth over the last three years. Earnings per share jumped 15.3% last year and averaged 24.8% annual growth the last three years. Also worth noting – the company has beaten earnings expectations for 18 consecutive quarters. We’ll find out soon if the streak continues, as TSM is set to release second-quarter earnings later today. It’s highly likely as analysts predict earnings per share of $2.37 – an increase of about 60%, since the same time last year. Net profit for the quarter is projected at $12.9 billion, and revenue for the year is expected to reach nearly $114 billion, up from $87.9 billion in 2024. I’ll be watching closely at the results, especially the company’s outlook as President Trump’s tariffs could have an effect on TSM. Taiwan was threatened with a 32% reciprocal tariff rate back in April but has yet to hear an updated figure like some other countries have received. Trump also said earlier this month that tariffs on semiconductors are likely to come soon. The Fundamentals Say It All Taiwan Semiconductor has outstanding fundamentals, Big Money support, and historical success. That’s exactly what I look for when recommending a stock, and it’s exactly why I did just that when I recommended it to my TradeSmith Investment Report subscribers back in February. As you might expect, TSM still maintains the same excellent Fundamental Score of 75.0 that it did when I first recommended it. 
Source: TradeSmith Finance I don’t just look at the fundamentals, though. When the biggest investors on the planet consistently pour money into a stock, it gives us a high probability of higher prices. That’s why I pay such close attention to Big Money and unusual buying activity. My system shows four Big Money buy signals in just over a month, represented by those green bars below. Each green bar shows days when the system detected proprietary signals of unusually heavy institutional accumulation. Notice how the green bars tend to line up in a series and lift the stock (blue line) higher. 
Source: MoneyFlows.com You probably also see all those red bars from earlier this year. They do indeed denote unusual selling, likely due to tariff uncertainty and negative sentiment towards the tech sector around that time. But even the best stocks are sold occasionally, and those signals marked a low, as shares quickly turned higher. Due to the recent buying, its technicals are slightly overheated at 82.4, and the stock currently trades above my buy limit. But I noticed something interesting that might make this a buy again soon. I ran Taiwan Semiconductor through TradeSmith’s Seasonality tool, which crunches the numbers on many years of history to find patterns you can trade in the future. Like a lot of stocks, TSM has some seasonal upside through the end of July but then cools off until the fourth quarter. However, starting the end of August there are some really good bullish trades lining up for the stock. Long-term investors could use the August lull as a buying opportunity. 
Source: TradeSmith Finance Bottom Line: If you want to profit from exponential progress in technology – and who doesn’t – Taiwan Semiconductor is the play. No other company is as responsible for keeping our digital world running, innovating, and growing. Talk soon, 
Jason Bodner
Editor, Quantum Edge Pro P.S. The TradeSmith Seasonality tool mentioned above spotted a major market inflection point set to hit on July 30, and you’ll want to get ahead of it. That’s why TradeSmith CEO Keith Kaplan is hosting a new seasonality webinar Tuesday, July 22. We’re not talking about a crash or a bear market. What’s coming could help you recover any losses you’ve incurred this year by embracing a more rapid-fire, data-driven style of investing. As a bonus, after you register, you’ll gain access to an exclusive website where you can run your stock tickers through our TradeSmith Seasonality tool. So, make sure you register here! | 
