Play TSMC's Best Year Since 1999 With These ETFs

Core Viewpoint - TSMC's stock has surged 82% in 2024, driven by strong investor interest in AI-related investments [1] Financial Performance - TSMC is expected to report a 36% sales growth for the December quarter, with a gross profit margin of 58.3%, the highest since 2022 [2] - The stock's price/book ratio is 8.63X, compared to the industry average of 8.20X, and the price/cash flow ratio is 24.30X versus 23.11X for the industry [5] - TSMC's trailing P/E ratio is 33.23X, higher than the industry average of 28.09X [10] Market Position - TSMC has high-profile clients including Apple, NVIDIA, and AMD, making it a significant beneficiary of the AI spending boom [2] - The company is ranked in the top 2% of the Zacks Semiconductor - Circuit Foundry Industry and top 6% of the Zacks Computer and Technology sector [7] Analyst Recommendations - TSMC has an average brokerage recommendation (ABR) of 1.35, indicating a strong buy sentiment from analysts [4] - Of the 10 recommendations, 70% are Strong Buy and 20% are Buy, consistent with previous month's recommendations [13] Price Targets - The average price target for TSMC is $226.14, representing a 9.6$206.33 on December 24, 2024 [9] Investment Vehicles - Investors can gain exposure to TSMC through ETFs, with significant weights in SPWO (15.75%), SPTE (15.50%), MEMX (14.41%), and SMH (12.65%) [11]