Summary
- Taiwan Semiconductor Manufacturing Company (TSM) benefits from unchallenged process node leadership and robust AI-driven demand, supporting a strong Bu…
Summary
- Taiwan Semiconductor Manufacturing Company (TSM) benefits from unchallenged process node leadership and robust AI-driven demand, supporting a strong Buy rating.
- TSM’s revenue mix is increasingly weighted toward high-growth AI accelerator demand, with cyclical segments rebounding and topline growth conservatively projected at ~21%.
- Pricing power remains intact due to advanced packaging scarcity and a widening technology moat, with gross margins and capital efficiency supporting expansion.
- Valuation at ~28x forward PE is justified by secular AI tailwinds, geopolitical de-risking, and potential for ~30% returns in 2-3 years even under conservative growth scenarios.
Alexander Sikov/iStock via Getty Images
There is no doubting the secular tailwinds driving a robust continued growth outlook for the Taiwan Semiconductor Manufacturing Company (TSM). In fact, irrespective of whether the next few years will challenge Nvidia’s GPU leadership or not (due to competition and inroads
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