TSMC: AI Resilience Should Keep Bears At Bay

KL Research
213 Followers
(18min)

Summary

  • TSMC's robust AI-driven growth, clear process roadmap, and resilient demand position it for strong performance through 2025/26 and beyond.
  • Q1 2025 results and Q2 guidance highlight impressive revenue growth, margin resilience, and management's ability to offset macro headwinds with price hikes.
  • Long-term tailwinds include the launch of new A16/A14 nodes, sovereign AI spending, and expansion into physical AI, robotics, and automotive applications.
  • Valuation remains reasonable versus peers; I view TSMC as a high-quality, long-term compounder and plan to hold my position.

Hsinchu, Taiwan -Jan 12, 2025:TSMC Museum of Innovation Exterior.Taiwan, TSMC is the world"s largest dedicated independent semiconductor foundry.

Introduction

Since I last published my article months ago, TSMC shareholders have gone through a volatile ride. Shares have witnessed significant declines due to concerns over escalating trade protectionism and questions about the sustainability of AI capital expenditure. While losses

This article was written by

213 Followers
A long-term investor passionate about Equity Research. My investment objective is to identify market asymmetries with positive reward-to-risk. I invest in high-quality, wide-moat companies that generate strong cash flow and trade at a fair price relative to their value. My research interests cover technology & semiconductors. Please feel free to subscribe to my channel to support its development.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of TSM, NVDA, AVGO 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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