If I Could Only Buy 1 Semiconductor Stock, This Would Be It

Core Insights - Taiwan Semiconductor Manufacturing Company (TSMC) plays a crucial role in the global AI infrastructure ecosystem, making it relatively resilient to market downturns [1] - Recent challenges in the semiconductor industry, particularly concerns over AI spending due to the release of an open-source AI model by DeepSeek, have negatively impacted many semiconductor stocks [2] - TSMC is estimated to account for 65% of the global foundry market in 2024, positioning it favorably amidst fears about future AI spending [3] Financial Performance - TSMC's revenues for 2024 are projected to reach $90 billion, reflecting a 30$25 billion and $25.8 billion, representing a 34.7$38 billion to $42 billion in capital expenditures for 2025, with approximately 70% directed towards advanced process technologies [9] - The company anticipates strong demand for AI accelerators, expecting revenues from this segment to double in 2025, driven by data center demand [11] Market Position and Valuation - TSMC trades at 23.7 times forward earnings, which is lower than peers like Nvidia and ASML, indicating a potentially attractive valuation [13] - Analysts project TSMC's revenues and earnings per share to grow by 27.75% and 28.1%, respectively, in 2025, alongside a dividend yield of 0.94% [13]