$Taiwan Semiconductor(TSM.US)

Context: A general sum up of positive news from TSMC over the past week. TSMC is preparing to manufacture Xiaomi’s Xring O3 processor using its 3nm process. The deal broadens TSMC’s customer base in AI-enabled consumer devices and autonomous-driving applications, reinforcing demand for its highest-margin technology.

There were also reports of hedge fund selling Sandisk shares and rotating into TSMC highlighting preference for TSMC’s exposure to the semiconductor and AI infrastructure cycle. The underlying business remains strong too. A reported 44.7% July revenue increase underscores powerful AI-related demand and supports expectations for robust results and guidance. TSMC and Sony agreed to invest $4.7 billion in a joint venture for next-generation smartphone image sensors, with mass production expected in 2029. The project could add another strategic growth avenue, although revenue is several years away.

My Trade: Opened a small position last week ahead of Nvidia's earnings as I expected Nvidia's results to carry the AI sector higher. A calculated risk that paid off before the sell off on Friday.

Takeaway: While the short term purchase was validated by the opportunity, I still think this cost price may be a little too high for my comfort. If possible, I would like to average down below $400. @Captain's Treasure