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TSMC $TSM JUST REPORTED ANOTHER RECORD MONTH. THE AI BOOM IS ACCELERATING, NOT SLOWING DOWN. TSMC’s October 2026 revenue surged to NT$586.9 billion, up 14.7% MoM and 59.7% YoY, representing another record high and a remarkable acceleration from September’s 54.6% YoY growth. What makes these numbers particularly impressive is that the sequential increase came from an already exceptionally high revenue base, suggesting that demand for advanced semiconductor manufacturing continues expanding at an extraordinary pace rather than merely benefiting from favorable comparisons. I think this reinforces our structural AI investment thesis because TSMC sits at the center of the global advanced semiconductor supply chain, manufacturing leading-edge chips for companies such as NVIDIA, Apple, AMD and other major technology players, while increasingly sophisticated AI accelerators, custom silicon and advanced packaging continue driving demand for scarce manufacturing capacity. October alone represented approximately 34.6% of the midpoint of TSMC’s fourth-quarter revenue guidance, suggesting a strong start to the quarter, although monthly revenue can fluctuate and one month does not guarantee a guidance beat. The most important distinction is that this is not simply a semiconductor industry recovering from a cyclical downturn, but an increasingly powerful structural investment cycle driven by the enormous expansion of AI computing infrastructure. TSMC remains one of the clearest ways to gain exposure to that opportunity because it benefits from the capital spending of multiple competing chip designers rather than depending on any single AI architecture. We remain long TSMC. As long as AI computing demand continues expanding faster than the industry’s ability to supply advanced chips, I believe the company remains exceptionally well positioned to benefit. Long $TSM. Long AI.

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1w ago on

APPLE $AAPL JUST GENERATED $145 BILLION IN ANNUAL OPERATING CASH FLOW. AND PEOPLE STILL QUESTION WHETHER THIS COMPANY CAN KEEP GROWING. Look at Apple's Q4'26 numbers. Revenue: $114.5B, +12% YoY EPS: $2.10 vs. $1.99 expected iPhone: $57.6B, +17% YoY Mac: $10.8B, +24% YoY Services: $31.6B, +10% YoY Operating profit: $35.6B, +10% YoY Absolutely remarkable for a company of this scale. But here's what makes Apple special. SERVICES GENERATES APPROXIMATELY 44% OF GROSS PROFIT DESPITE ACCOUNTING FOR ONLY 28% OF REVENUE. Apple doesn't simply sell expensive gadgets. It owns an ecosystem that keeps generating recurring revenue long after customers purchase their devices. And the cash generation is extraordinary. $145 BILLION in FY26 operating cash flow. Approximately $136 BILLION in free cash flow. Unlike hyperscalers spending hundreds of billions building AI infrastructure, Apple can potentially monetize AI through billions of existing devices without bearing the same capital expenditure burden. Of course, there are headwinds. Q1'27 revenue growth guidance of 7–10% exceeded the 6.1% consensus, but gross margin guidance of 45–46% disappointed as rising memory prices and Siri AI investments increase costs. An interesting irony: the AI boom enriching memory manufacturers is simultaneously squeezing Apple's hardware margins. At 36.5x FY27 earnings and 32.9x FY28 earnings, Apple is certainly not cheap. But I believe the premium is justified. Very few companies can match Apple's pricing power, customer loyalty, recurring revenue and capital efficiency. APPLE DOESN'T NEED TO BUILD THE WORLD'S SMARTEST AI MODEL. IT NEEDS TO REMAIN THE DEVICE AND ECOSYSTEM THROUGH WHICH CONSUMERS EXPERIENCE AI. And that is an extraordinarily powerful position. We remain LONG $AAPL.