When the future starts moving FASTER, here's what this global CEO says investors must NOT miss…
| From the desk of Miles Everson: Welcome to today’s “The Independent Investor!” Every Wednesday, I write and publish basic investing-related articles with hopes to help you achieve financial freedom and stability for the long run. In this article, let me share a coaching comment my friend and colleague, Professor Joel Litman, presented to his workforce at Valens Research. Curious about it? |
When the future starts moving FASTER, here's what this global CEO says investors must NOT miss… Some shifts in the market announce themselves quietly. Others rumble beneath the surface long before anyone notices. … and then there are the moments when the ground outright moves—when the next era of technology barrels forward whether investors are ready or not. Professor Joel Litman , Chairman and CEO of Valens Research and Chief Investment Officer of Altimetry Financial Research , says we're standing in one of those moments right now. In fact, the world’s largest chip manufacturer is telling us exactly where the next wave is headed.
The Signal Hidden in Taiwan Semiconductor’s Surge According to Professor Litman, the global investment community has been handed a loud, unmistakable signal: The AI buildout is accelerating faster than the market realizes . Taiwan Semiconductor Manufacturing Company (TSMC) , the world’s most advanced chipmaker, just reported a staggering 61% jump in net income in its 2nd quarter in 2025, surpassing already-optimistic expectations and marking its strongest growth in more than a year. Even more striking, management boosted its 2025 revenue growth outlook to 30%, up from the mid-20% range. Professor Litman emphasized the key driver behind this surge: Demand for AI chips isn’t just strong; it’s intensifying . TSMC produces Nvidia ’s most advanced AI processors, the very chips fueling nearly every AI model today… and despite global economic uncertainty and geopolitical tension, TSMC is doubling down rather than pulling back. What else? Professor Litman explained that TSMC’s transformation is reshaping the entire semiconductor landscape. High-performance computing (HPC)—the engines behind data centers, servers, and AI infrastructure—now accounts for roughly 60% of TSMC’s revenue, nearly double its share from 2020. This is not a cyclical blip. It’s a structural reallocation of capital. TSMC plans to spend approximately USD 40 billion on expanding manufacturing capacity in Taiwan in 2026, with another USD 100 billion committed to long-term capacity projects in the U.S. For now, Professor Litman noted, TSMC remains the only manufacturer capable of producing enough of Nvidia’s H100 and B200 chips to satisfy global demand. What’s even more consequential? TSMC is on track in its mass production of 2-nanometer chips, the most sophisticated semiconductors in human history! In other words, these are chips that will power the next generation of AI advancement. Clearly, TSMC is not a company planning for a peak. It’s a company preparing for a multi-year runway of explosive growth. Professor Litman emphasized that the AI boom has barely entered its second chapter. Semiconductor demand is climbing, AI models are expanding, and infrastructure must grow with them. The winners won’t only be chip designers like Nvidia; it will also be the companies forming the backbone of the entire AI ecosystem. These include:
Yet, within this ecosystem, TSMC holds a unique position. In Professor Litman’s words: “It’s the supplier to everyone. It benefits no matter which AI chipmaker wins the popularity contest.” … and as AI becomes woven into every industry—health care, logistics, automotive, enterprise software—the demand for next-generation chips will not soften but only accelerate. The bottom line? The next wave of AI technology is not a future vision; it’s already unfolding . Those who understand the scale of the AI transformation are positioned to capture long-term gains before the rest of the market wakes up. Besides, it’s a given that the market will eventually catch up. The only question is, “Will you and other investors get there first?” Hope you’ve found this week’s insights interesting and helpful. Stay tuned for next Wednesday’s The Independent Investor! Big Tech and other sectors of the market were recently roiled by investor anxieties regarding AI disruption. Learn more about why selloffs can still happen in a bull run in next week’s article! |
Miles Everson
CEO of MBO Partners and former Global Advisory and Consulting CEO at PwC, Everson has worked with many of the world's largest and most prominent organizations, specializing in executive management. He helps companies balance growth, reduce risk, maximize return, and excel in strategic business priorities.
He is a sought-after public speaker and contributor and has been a case study for success from Harvard Business School.
Everson is a Certified Public Accountant, a member of the American Institute of Certified Public Accountants and Minnesota Society of Certified Public Accountants. He graduated from St. Cloud State University with a B.S. in Accounting.
