Executive Summary
- Taiwan Semiconductor Manufacturing (TSMC) is benefiting from escalating demand for advanced AI chips, reporting a 41% year-over-year revenue increase and projected 25% annualized earnings growth.
- CrowdStrike Holdings is poised to capitalize on the growing need for robust cybersecurity against sophisticated AI-driven cyberattacks, with its share price increasing 82% over the past year and strong recurring revenue growth.
- Both TSMC, in advanced chip manufacturing, and CrowdStrike, in AI-driven cybersecurity, are identified as prominent technology companies set to benefit significantly from the expanding artificial intelligence market.
The Story So Far
- The rapid expansion of the artificial intelligence (AI) market is creating significant demand for advanced AI chips, which are essential for powering AI applications, and concurrently leading to a surge in sophisticated AI-driven cyberattacks, necessitating robust cybersecurity solutions.
Why This Matters
- The relentless expansion of artificial intelligence is creating substantial tailwinds for foundational technology companies, positioning TSMC for sustained growth due to escalating demand for advanced AI chips that power the ecosystem. Simultaneously, CrowdStrike is set to capitalize on the urgent need for robust cybersecurity solutions to combat increasingly sophisticated AI-driven cyberattacks. This indicates that both the hardware enabling AI and the security protecting it are critical areas of long-term growth and investment within the evolving tech landscape.
Who Thinks What?
- John Ballard’s analysis indicates that Taiwan Semiconductor Manufacturing (TSMC) is poised to capitalize on the expanding artificial intelligence (AI) market due to escalating demand for advanced AI chips, its strong competitive position in manufacturing cutting-edge processors, and projected sustained growth.
- John Ballard’s analysis also suggests that CrowdStrike Holdings is well-positioned to benefit from the AI boom by addressing the growing need for robust cybersecurity solutions against sophisticated AI-driven cyberattacks, leveraging its extensive data collection and AI-enhanced threat detection capabilities.
An analysis published November 6, 2025, highlights Taiwan Semiconductor Manufacturing (TSMC) and CrowdStrike Holdings as two prominent technology companies poised to capitalize on the expanding artificial intelligence (AI) market. The report, authored by John Ballard, indicates that TSMC is benefiting from the escalating demand for advanced AI chips, while CrowdStrike is well-positioned to address the growing need for robust cybersecurity solutions against sophisticated AI-driven cyberattacks.
Taiwan Semiconductor Manufacturing (TSMC)
TSMC, a pivotal player in the global semiconductor supply chain, is identified as a leading chip manufacturer critical for devices ranging from smartphones to data centers. The company’s strong competitive position, manufacturing chips for other firms, positions it to profit from the long-term growth opportunities in AI.
The company reported a 41% year-over-year increase in revenue last quarter, driven by strong demand for its cutting-edge process technologies. While chipmaking is historically cyclical, the current surge in demand for advanced AI chips is projected to sustain significant growth for TSMC for several years. The firm’s advanced 3-nanometer chips contributed nearly a quarter of its revenue, and high-performance computing products accounted for 57% of its total revenue last quarter.
TSMC’s competitive advantage stems from extensive investments and expertise in manufacturing advanced processors, serving hundreds of customers with over 11,000 different chips last year. Despite a 58% share price drawdown in 2022, the analysis suggests that investors who bought at the peak of the previous cycle in late 2021 would have more than doubled their money, underscoring the substantial long-term growth potential. Analysts forecast an annualized earnings growth rate of 25% for the company. As of November 5, 2025, TSMC’s market capitalization stood at approximately $1.5 trillion, with shares priced at $293.64.
CrowdStrike Holdings
The analysis also points to CrowdStrike Holdings as a beneficiary of the AI boom, specifically within the cybersecurity sector. The proliferation of AI is making cyberattacks more sophisticated and efficient, creating a significant market opportunity for cybersecurity leaders. CrowdStrike’s share price has increased by 82% over the past year.
CrowdStrike’s trailing-12-month revenue has grown from $1.8 billion to over $4.3 billion in the last three years, with a 21% year-over-year revenue increase in the most recent quarter. The company’s competitive edge is built on over a decade of data collection, which enhances its AI’s threat detection capabilities. Its Falcon platform leverages trillions of data points to rapidly identify threats from AI-driven attacks, offering security for cloud environments, devices, and user identities.
During its Q2 earnings call in August, CrowdStrike’s management noted a doubling of deals worth over $10 million year-over-year, and the company now serves 800 customers with annual recurring revenue exceeding $1 million. Management has guided for at least 40% year-over-year growth in annual recurring revenue for the second half of the year. CrowdStrike had a market capitalization of roughly $134 billion, with its shares trading at $534.17.
Market Outlook
The analysis concludes that the relentless expansion of artificial intelligence is creating substantial tailwinds for companies at the forefront of essential technologies. Both TSMC, in advanced chip manufacturing, and CrowdStrike, in AI-driven cybersecurity, are positioned to benefit significantly from these industry trends in the coming years.
