Jim Cramer Makes His Feelings About Taiwan Semiconductor (TSM) Clear

What happened: On Mad Money's October 1 lightning round, Jim Cramer said he likes Taiwan Semiconductor (NYSE:TSM) and told a caller to buy it, calling it a great company while noting his NVIDIA preference. Key numbers: Q2 revenue $40.20 billion, up 33.7% year over year. Net income rose 77.4% to NT$706.56 billion. Gross margin 67.7%. Why it matters: Heavy capex and the 2-nanometer ramp are expected to cut second-half gross margin by roughly 3 to 4 percentage points, with overseas factories adding 2 to 3 points of dilution, so demand growth may not translate directly into margin gains.

On Mad Money's October 1 lightning round, Jim Cramer said he likes Taiwan Semiconductor (NYSE:TSM) and told a caller to buy it, calling it a great company while noting his NVIDIA preference.

Heavy capex and the 2-nanometer ramp are expected to cut second-half gross margin by roughly 3 to 4 percentage points, with overseas factories adding 2 to 3 points of dilution, so demand growth may not translate directly into margin gains.