As Chip Stocks Sell Off, This Is the Flight-to-Safety Play I Would Choose

Despite semiconductor sector volatility driven by rising capex and interest rates, Taiwan Semiconductor (TSMC) is positioned as a safer AI infrastructure play. The company reported 51% revenue growth and 69% net income growth in Q3 2026, controls 73% of third-party chip manufacturing, and maintains dominant position in advanced chip production. While geopolitical risks exist, TSMC's essential role in AI chip supply and strong earnings growth make it attractive for dollar-cost averaging despite recent sell-offs.