Taiwan Semiconductor Manufacturing: Is the Stock a Buy as Revenue Continues to Soar?

TSMC reported strong Q2 results with 34% year-over-year revenue growth to $40.7 billion and gross margin expansion to 67.6%. The company raised full-year revenue guidance to over 40% growth and increased 2026 capex budget to $60-64 billion, signaling sustained AI chip demand. Trading at a forward P/E of ~20x, the stock is viewed as attractively valued given its monopolistic position in advanced chip manufacturing.