The most powerful AI chips in the world share one manufacturer.
Nvidia, Apple, and AMD all design their chips in-house but ship the blueprints to the same place to be manufactured.
Taiwan Semiconductor Manufacturing Company (TSM), is where every major AI chip moves from blueprint to finished product. No other company builds at this scale or at these production nodes.
TSMC controls 72.3% of the global advanced chip manufacturing market. Nvidia’s Blackwell GPU, Apple’s latest processor, and every advanced chip AMD ships at the leading edge all come out of TSMC’s factories.
No competitor comes close to the most advanced production levels.
TSM reported Q1 2026 revenue of $35.5 billion, up 35% year over year, with profits rising 58% to a fourth consecutive record quarter. Advanced chips now account for 75% of total wafer revenue. Management raised full-year 2026 guidance to more than 30% revenue growth and projects AI chip revenue growing at least 50% annually through 2029.
The company is investing $56 billion in capital spending this year alone, with Arizona fabrication plants now entering high-volume production.
Every dollar the AI industry spends on infrastructure first flows through TSM’s factories.
That is the business story.
But what I’m most excited about is what I’m seeing in the chart.
The moving averages tell the trend. The 34-day EMA, which tracks average price action over the past 34 trading days, sits at $388.84. The 21-day and 8-day EMAs, which weight recent price action more heavily, come in at $396.33 and $402.46.
You don’t have to be a chartist to know that the trend is pointing up.
We have a strong trend and pattern. The last layer I look for is the squeeze.
And right now, the squeeze is active on the daily chart.
A squeeze occurs when price compresses into a tight range, building pressure before a larger move. The momentum histogram is sitting at the zero line, right at the inflection point between negative and positive momentum.
The squeeze has not yet fired to the upside, which means the setup is forming, but the trigger has not arrived. That is exactly when I start paying attention.
Next earnings are not until July 15, which gives the trade room to develop without event risk.
Some AI stocks have gone parabolic this year. And one could argue they are overextended. However, that’s not what we’re seeing with TSM right now.
Based on all the catalysts and the chart, this looks poised to go higher.
Last week, I went 24-for-25 in the Daily Proflits Live room. If you want to know what I’m trading, you can check it out here.