BING-JHEN HONG
Investment Thesis
I rate Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) a buy for a couple of reasons. First and foremost, in my previous articles on Astera Labs, Inc. (ALAB) and Credo Technology
Taiwan Semiconductor: The 'Go To' Factory For AI Boom
Summary
- TSMC is the foundational chip manufacturer for leading AI and tech companies, with unmatched scale and technology vs. competitors like Samsung and Intel.
- The AI boom is fueling massive, sustained demand for advanced chips, positioning TSMC as the primary beneficiary across the industry.
- Despite its central role, TSMC trades at a significant discount to peers on key valuation metrics, indicating the stock is undervalued.
- Given its dominant position, growth catalysts, and attractive valuation, I rate TSMC a Buy with strong upside potential.
Kennedy is a GARP-themed investor with a bias towards companies with aggressive growth prospects, en route to becoming highly profitable in 1-2 years.His investment philosophy emphasizes long-term discipline, consistent alpha, and a pinch of salt (risk).He writes to empower the underprivileged and improve financial literacy.The Curious Analyst is an associate of Kennedy Njagi
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in TSM over the next 72 hours. 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.
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