Summary
- Taiwan Semiconductor remains the most dominant AI foundry, benefiting from broadening AI-driven demand linked to the hyperscalers and, increasingly, the frontier labs.
- TSM trades at just under 20x forward earnings, with valuation multiples reverting to 5-year averages amid hyperscaler CapEx growth deceleration concerns.
- Despite rising competition from Samsung and Intel, TSM's market leadership and advanced process adoption remain secure and unrivaled.
- Robust AI infrastructure spending continues to underpin structural demand, and the market has compressed TSM's multiples too far.
- I urge investors to capitalize on the current negative outlook on the AI boom right now before it surges back to its $480 high.
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TSMC: The Market Is Not Giving Enough Respect
Taiwan Semiconductor (TSM), the world's leading foundry and a massive beneficiary of the AI boom. Earnings continue to be revised upwards as the purported
