Previously, I expressed cautious optimism toward chip-foundry juggernaut Taiwan Semiconductor (NYSE:TSM). Today, I’m throwing caution to the wind and just going full-on bullish. The demand for artificial intelligence chips is massive, and there’s really nothing to stop Taiwan Semiconductor stock from heading higher.

Perhaps I felt some hesitation before because the share price just kept going up. Yet, a vertical price move can be justified when a company is highly successful. Taiwan Semiconductor definitely fits this description, so it’s time to buy some shares and let the trend be your friend.

How Dominant Is Taiwan Semiconductor?

Some skeptics might claim that U.S.-based chip-foundry rival Intel (NASDAQ:INTC) might steal market share from Taiwan Semiconductor. Yet, on an international level, I’d counter that Taiwan Semiconductor is an unstoppable dominator.

Here’s an indication of just how powerful Taiwan Semiconductor really is. Believe it or not, according to Reuters, some China-based chip companies are purposely “designing less powerful processors to retain access to” Taiwan Semiconductor as a chip producer.

That’s right – some businesses are actually downgrading their chip designs just so they can keep Taiwan Semiconductor as a producer. That’s because certain chip companies seek to comply with U.S. export controls from last year, which limit the trade of some powerful AI chips.

I have nothing against Intel, by any means. But you must admit, Intel isn’t so powerful on an international scale that companies are downgrading their processor designs, like they are with Taiwan Semiconductor.

Here’s Another Reason to Invest in Taiwan Semiconductor

Are you still reluctant to invest in Taiwan Semiconductor? No problem, as the company just gave you another reason, in case you don’t have enough reasons already.

One way a company can show respect to its shareholders is by repurchasing the company’s own shares. This reduces the circulating supply of shares, which could help to keep the stock price up for a while.

Thus, it’s good news that Taiwan Semiconductor plans to repurchase 3.25 million of the company’s own shares on the Taiwan Stock Exchange. Reportedly, Taiwan Semiconductor intends to buy back all of those shares between June 6 and Aug. 5.

I won’t go so far as to say that Taiwan Semiconductor’s share-buyback program will put a “floor” on the company’s stock price. It’s just a sign that Taiwan Semiconductor prioritizes its shareholders, and another incentive to grab some stock shares if you’re not already an investor.

Taiwan Semiconductor Stock Can Keep Moving Higher

Taiwan Semiconductor is a behemoth among chip-foundry companies. Intel may try to steal market share, but Taiwan Semiconductor will remain a global dominator for the foreseeable future. Plus, it’s a great sign that Taiwan Semiconductor is implementing a large-scale share-repurchase program.

Hence, there’s no need to worry just because Taiwan Semiconductor stock already rallied in 2024. It will probably continue to move higher, so either get some Taiwan Semiconductor shares or get out of the way.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.