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Is Taiwan Semiconductor Stock Still A Buy? Wait For A Larger Dip First


  • Taiwan Semiconductor is the world's preeminent foundry in leading process nodes. No other player comes close to its dominance at the moment.
  • Intel has been making headway in its quest to make up for lost ground. The company recently unveiled its first EUV chip based on its Intel 4 process.
  • Despite the recent retracement, TSM stock continues to trade at a premium. Investors might want to wait for a deeper retracement first before adding exposure.
  • Therefore, TSM stock is not a Buy now.
  • I do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

the sunrise of the Taipei 101 Tpwer

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Investment Thesis

Taiwan Semiconductor (NYSE:TSM) is the world's preeminent foundry for leading-edge semiconductor nodes. Much has been said about TSMC's prowess in the foundry market. The company has undoubtedly entrenched its leadership in the high-performance computing (HPC) and

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This article was written by

JR Research profile picture

JR Research is a seasoned investor with a background in economics. He focuses on identifying 3 main things - leading growth companies, emerging market trends, and secular growth opportunities. His approach combines price action with fundamentals investing.

He runs the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. The group is designed for investors seeking to capitalize on emerging, high-growth opportunities, and investors looking for sustainable growth opportunities at a reasonable price.

Learn more

Analyst’s Disclosure: I/we have a beneficial long position in the shares of TSM, INTC, AMD, NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (8)

jack kreg profile picture
TSMC will be cheap right after CCP bombs hit.
@jack kreg Doubtful they would bomb Taiwan. The U.S. military -- enough said.
Patrick Papirny profile picture
I do not understand why all looking for a lower price at TSMC? I am sure that if TSMC would be a US company it would have a share price of 150 Dollar or more. It is one of the best tech companies you can buy at the moment. There are only a handful of companies in the world how have this technology advantage, this profit margin (> 30 % after tax) and such a riskless growth
perspective as this company.
@Patrick Papirny I think you answered your own question. What do you see happening in future that would cause it to rerate and be priced like a US company and not one with expensive fabs on a earthquake prone island next to a saber rattling neighbor. I don't think there will be war, but the threat of it could be a long term cloud on the multiple. I like tsm too, rode it up from $50 to $100+ last year, but to say this is riskless...
Patrick Papirny profile picture
@demic You are right but nearly all US tech companies are in an area with high earthquake risk. Experts say that is only a question of time when will be a huge earthquake in California (San Andreas)....and then..???
@Patrick Papirny the risk to tsmc's high precision hardware (like $160m asml machines) and down time vs a fabless outfit or a software company is quite different no? Intel's fabs are in Arizona and Oregon.
Have you looked at cdns and snps? Wondering if that's a better way to play the semi sector with less worry about competition and having to constantly spend massive capex to keep up against Intel/Samsung.
JR Research profile picture
@demic Thanks for that! We will take a closer look
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