Moo Brief: TSM's Q3 earnings ahead, the cheapest but also the best?

$Taiwan Semiconductor (TSM.US)$ is recognized as a leading player in the generative AI sector, also the cheapest generative AI play as one of the trifecta of AI godfathers along with $NVIDIA (NVDA.US)$ and $ASML Holding (ASML.US)$, attributed to the FWD PEG non-GAAP ratio of 1.06x. TSM is scheduled to release its financial results on October 17 ET. , with preliminary sales suggesting a strong performance likely to exceed market expectations.

TSM's revenue growth is driven by strong demand in generative AI and data centers, with 3nm chip price hikes suggesting further potential. As Samsung loses market share and $Intel (INTC.US)$ struggles to produce viable 18A chips, TSM is poised to strengthen its market position.

While market volatility and potential profit margin pressures from overseas operations warrant caution, TSM's solid fundamentals and growth prospects make it a compelling investment in the semiconductor industry. Notably, TSM holds the second-largest weight in $VanEck Semiconductor ETF (SMH.US)$ at 12.47%, just behind NVDA at 20.7%.