TSM - Taiwan Semiconductor: A Sure Bet On AI

2024-06-25 08:38:27 ET

Summary

• TSM's Q1 earnings beat expectations, with strong revenue and profit growth, leading to a 30% stock price increase post-earnings.
• TSM dominates the advanced semiconductor market, with significant clients and strong demand for smaller chips in AI PCs.
• Despite concerns about China, TSM benefits from federal funding and has solid debt, dividend, and valuation metrics, making it a Buy.

Count me as a guy that thinks the market has gone a bit Artificial Intelligence ((AI)) crazy. I’m not claiming that AI stocks are poor investments, but it seems as if investors are throwing money at anything and everything with a toehold in AI.

Therefore, it seems a bit odd to me that many are shying away from an investment in Taiwan Semiconductor Manufacturing Company ( TSM ). Obviously, some are concerned that China will invade Taiwan. But on the other hand, I believe others do not fully appreciate TSM’s presence in the AI industry....

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