Core Insights - Taiwan Semiconductor Manufacturing Company Limited (TSMC) has underperformed the market with a return of negative 18% since the last coverage, highlighting its critical role in AI chip manufacturing [1] Company Analysis - TSMC is essential for AI, manufacturing chips that power various applications, indicating its strategic importance in the technology sector [1] - The company demonstrates a proven track record in scaling businesses, smart capital allocation, and insider ownership, which are key indicators of effective management [1] - TSMC maintains consistent revenue growth and provides credible guidance, reflecting its operational stability [1] Market Positioning - TSMC possesses a strong technology moat and first-mover advantage, which are crucial for maintaining competitive positioning in the semiconductor industry [1] - The company benefits from network effects that drive exponential growth, particularly in high-growth industries [1] Financial Health - TSMC shows sustainable revenue growth with efficient cash flow, indicating robust financial health [1] - The company has a strong balance sheet and a long-term survival runway, which are essential for navigating market challenges [1] - TSMC avoids excessive dilution and financial weakness, further strengthening its financial position [1] Investment Methodology - The investment approach focuses on identifying high-conviction opportunities with a strong margin of safety to protect against capital impairment while maximizing long-term compounding [1] - Portfolio construction includes core positions (50-70%) in high-confidence, stable plays, growth bets (20-40%) in high-risk, high-reward opportunities, and speculative positions (5-10%) in moonshot disruptors [1]

I last analyzed Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM ) in Feb 2025. That article , titled " Taiwan Semiconductor: Don't Bet Against AI Acceleration And Leading 3 Nm Technology", argued for a buy rating Join for a trial and see if our proven method can help you too. As you can tell, our core style is to provide actionable and unambiguous ideas from our independent research. If your share this investment style, check out Envision Early Retirement. It provides at least 1x in-depth arti ...

Group 1: Market Overview - Artificial intelligence (AI) investing has gained significant attention in 2023, but there has been a recent cooling off in the market [1] - Despite the current market conditions, expectations are for AI stocks to rebound following strong first-quarter results [1] Group 2: Company Focus - Taiwan Semiconductor Manufacturing (TSMC) - TSMC is highlighted as a top AI stock due to its strong position in the semiconductor industry, serving as a foundry for various AI hyperscalers [2][3] - TSMC's management has a clear vision for the future, with expectations of a 45% compound annual growth rate for AI-related chips over the next five years, and overall company growth approaching 20% [4] Group 3: Financial Performance - TSMC has reported impressive revenue growth, with January 2025 revenue rising 36% year over year and February's growth accelerating to 43% [6] - The stock is currently trading at a low valuation of 20 times forward earnings, which is cheaper compared to the S&P 500's 21 times forward earnings [7][9] Group 4: Strategic Positioning - TSMC's neutral position in the AI race allows it to benefit from all competitors needing chips, regardless of their success [3][10] - The company has mitigated tariff risks by expanding its production capabilities in the U.S., which has helped it avoid potential threats from U.S. tariffs [5]

Taiwan Semiconductor Manufacturing (TSM 2.17%) stock posted gains in Thursday's trading despite a pullback for the broader market. The company's share price rose 2.1% in the daily session. Meanwhile, the S&P 500 closed out the day down 0.3%, and the Nasdaq Composite was down 0.4% in the session.Taiwan Semiconductor Manufacturing (TSMC) stock is gaining ground today following indications that the company will not purchase Intel's chip foundry business. Some reports have suggested that TSMC could buy Intel's ...

Core Viewpoint - The rise of artificial intelligence (AI) has significantly impacted various industries, leading to increased investments in companies associated with AI, particularly in software and hardware sectors [1][2]. Company Analysis - Nvidia has seen a remarkable increase in its stock price, climbing nearly 680% since the release of ChatGPT on November 30, 2022, which has added trillions to its market value [2]. - Despite Nvidia's strong performance and promising future, its current market cap of nearly $3 trillion raises concerns about the sustainability of further growth [3]. - Taiwan Semiconductor Manufacturing Company (TSMC) is identified as a top pick among AI chip stocks, with significant potential for growth compared to Nvidia [4]. Industry Position - TSMC is the leading player in the foundry business, crucial for manufacturing advanced chips, and holds a commanding 67% share of the global third-party foundry market as of the end of 2024 [6]. - TSMC collaborates closely with major tech companies, including Nvidia, AMD, and Apple, which positions it favorably within the AI narrative [6]. - The company has demonstrated impressive sales growth and has successfully widened its profit margins during a period of rapid expansion [7]. Investment Strategy - TSMC is reinvesting profits into expanding its capacity, with a $65 billion investment in Arizona and an additional $100 billion planned for R&D and fabrication facilities in the U.S. [8][9]. - Despite a challenging start to 2025 for the stock market, TSMC shares have declined about 12% year-to-date, presenting a potential buying opportunity [10][11]. - TSMC's forward price-to-earnings (P/E) ratio of 19.2 is consistent with its three-year average, yet the company has become a key player in the AI chip industry, suggesting undervaluation [12]. - The long-term prospects for TSMC appear bright due to increasing infrastructure spending on data centers and chips, making its shares an attractive investment for those with a long-term horizon [12][13].

Taiwan Semiconductor Manufacturing Company (NYSE: TSM ) is uniquely positioned as the unrivaled market leader in the semiconductor fabrication space, which is the operation responsible for bringing to tangency the theoretical chip designs of fabless leaders and hyperscalers. As industries increasinglyRobin Hannoun, CFA is a Senior Investment Analyst at Valued Wealth Management, with a Master of Finance from HEC Paris and a Master of International Business from the University of Florida. He holds bachelor’s ...

Value is what an investor gets, and price is what that investor pays for an underlying asset or investment. When it comes to the stock market, prices are floated around every single day, yet only the best investors know which price range is worth considering as long as they understand the company’s current fair valuation. Taiwan Semiconductor Manufacturing TodayTSMTaiwan Semiconductor Manufacturing$176.36 +2.27 (+1.30%) 52-Week Range$125.78▼$226.40Dividend Yield1.22%P/E Ratio25.05Price Target$220.00Add to ...

With the S&P 500 (^GSPC 0.64%) closing 10% below its all-time high, it's now in correction territory. While nobody likes seeing their holdings decline by 10% or more, corrections occur about every year, so nobody should be surprised when they happen. However, the market has always recovered to a new high after every correction in history, so it's safe to say that investors should view this pullback as a buying opportunity.One stock that I'm loading up on as the market declines is Taiwan Semiconductor (TSM 1 ...

Group 1 - Taiwan Semiconductor Manufacturing (TSM) is positioned to capture a significant share of the AI industry's profits in the upcoming years, leveraging advanced technology and financial strength [1] - The company is recognized as a leading player in the AI sector, particularly noted for its expertise in machine learning algorithms and model deployment [1] - TSM's growth trajectory is supported by its status as an "AWS Certified AI Practitioner Early Adopter," indicating its commitment to integrating AI tools and applications [1] Group 2 - The article highlights the increasing importance of AI and machine learning in the investment landscape, suggesting that companies like TSM are well-positioned to benefit from this trend [1] - The author emphasizes the relevance of obtaining advanced certifications in machine learning, which aligns with the industry's focus on expertise and innovation [1]

Taiwan Semiconductor Manufacturing TodayTSMTaiwan Semiconductor Manufacturing$174.16 +2.57 (+1.50%) 52-Week Range$125.78▼$226.40Dividend Yield1.24%P/E Ratio24.74Price Target$220.00Add to WatchlistTaiwan Semiconductor Manufacturing NYSE: TSM is making a massive investment in the United States. This move may be the biggest economic success for the Trump administration so far. The semiconductor company plans to invest another $100 billion in the country, home to many of its key customers like NVIDIA NASDAQ: N ...