Should I Buy Taiwan Semiconductor (TSM)? Finance YouTuber Analysis

The analyst recommends buying Taiwan Semiconductor due to its strong revenue growth and better-than-expected profit margins, which continue to defy management's own lower forecasts. Despite a significant price increase, a discounted cash flow model suggests the stock is still undervalued at $616 per share compared to its current market price of $437. The company is also benefiting from soaring demand for semiconductors driven by agentic AI.

“So, looking at valuation, the stock still looks undervalued despite the phenomenal share price increase already in the first half of 2026. So, I do see this stock as a buying opportunity, and I do have the stock ranked as a buy as of this recording and as of my most recent update.”

The analyst identifies TSMC as an undervalued stock, noting its role as a key manufacturing partner for major tech companies like Apple and Nvidia. Despite potential future margin compression from geographic diversification efforts, the company is currently experiencing booming demand and better-than-expected profit margins, making it attractive at its current valuation.

“TSMC is the manufacturing partner for some of the world's largest tech companies, including Apple and Nvidia. Those companies outsource their manufacturing needs to Taiwan Semiconductor, and those companies are seeing booming demand and orders and backlogs are increasing for TSMC.”

The YouTuber highly recommends Taiwan Semiconductor Manufacturing Company (TSMC) as the world's best manufacturing company, poised to benefit from the increasing demand for semiconductor chips across all industries. He emphasizes its operational efficiency and its role as a manufacturing partner for major tech companies like Apple and Nvidia. He calculates a fair value of $607, making it significantly undervalued at its current market price of $434.

“The market price of $434 is well below the fair value I calculated at $607.”

The analyst recommends buying Taiwan Semiconductor due to its strong revenue growth over the past decade, superior operating profit margins compared to Intel, and a discounted cash flow valuation indicating it is meaningfully undervalued at current prices. Despite geopolitical risks, TSM remains a more attractive investment than Intel even with a premium applied to Intel for geopolitical benefits.

“Taiwan Semiconductor stock looks meaningfully undervalued at these prices. Intel, meanwhile, I calculated a fair value for the business at $50 per share, but that's well above the current market price of $128. So, Intel stock looks meaningfully overvalued at current market prices.”

The analyst recommends Taiwan Semiconductor Manufacturing Company (TSMC) as an attractive buy, trading below his fair value of $587. He highlights its critical role as a manufacturing partner for major semiconductor companies like Nvidia and AMD, noting that booming demand has created a backlog. TSMC's conservative capacity expansion allows it to capture premium prices and operate at near full capacity, leading to excellent margins and profitability.

“At $425 per share, it's below the fair value I calculated at 587.”

The YouTuber reports Leopold Aeschbacher's $500 million short position in TSM. This is part of Aeschbacher's strategy to bet against crowded chip winners, suggesting a rotation away from the design layer of AI towards the deployment layer.

“TSM, about 500 million.”

The YouTuber emphasizes TSMC's critical role as the manufacturer of over 90% of advanced chips globally, serving all major players in the 'chip war.' Their technological lead means they can set prices, as customers have no alternative for advanced chip production, making them a consistent winner regardless of specific chip design trends.

“TSMC is so far ahead of every other foundry that they can simply set the price and customers have to pay because there's nowhere else for them to even go.”

The YouTuber recommends buying Taiwan Semiconductor due to its dominance in high-performance AI chip manufacturing, which ensures strong revenue growth as AI infrastructure expands. Despite a high P/E ratio, its PEG ratio suggests it's undervalued compared to the sector when accounting for its rapid earnings growth. The stock was initially impacted by Middle East conflict concerns but has since recovered, presenting a long-term opportunity.

“So, as long as that AI infrastructure build out uh continues, Taiwan semiconductor is going to get a majority of that revenue going to do very well.”

The YouTuber recommends Taiwan Semiconductor as a critical infrastructure stock in the AI building phase, following the semiconductor supply chain. He emphasizes the ongoing demand for compute capacity to run AI models and the massive spending in AI infrastructure.

“That's names like Nvidia took her NVDA, Advanced Micro Devices AMD, Broadcom AVGO, Marvel Technologies, MRVL, Taiwan Semiconductor took her TSM, and yes, even Super Micro computer took our SMCI, which is now up 38% from its March crash and approaching that $30 a share once again.”

The YouTuber suggests a 'put strategy' on Taiwan Semiconductor as a way to protect against a potential AI bubble burst. He implies that buying puts on TSM could make money if AI stocks tumble, acting as an insurance contract for an AI-heavy portfolio.

“I laid out three scenarios two weeks ago, including a push strategy on shares of Taiwan Semiconductor that could make you money if that AI stocks tumble.”

The YouTuber suggests avoiding Taiwan Semiconductor Manufacturing (TSM) by buying deep out-of-the-money put options, specifically the December 19th $200 strike price puts. He argues that if the US changes its policy on Taiwan independence to formally opposed, it could clear the way for China to take the island, causing TSM shares to crash due to its manufacturing concentration there. This strategy aims to protect a portfolio from this specific geopolitical risk.

“For that I'm going with the obvious loser here in that China Taiwan scenario Taiwan Semiconductor Manufacturing ticker TSM. While TSM has been expanding its global manufacturing footprint, it still has most of it on the island and would fall into chaos if China were to invade.”

The analyst suggests avoiding Taiwan Semiconductor Manufacturing (TSM) in the short term, despite its 42% year-to-date gain. The company faces a weakening semiconductor market, evidenced by a 21% drop in Taiwan's chip exports. TSM is expected to report a 22% drop in earnings and a 7.6% drop in sales this year, and anything less than a strong beat or positive outlook could threaten the recent rally in semiconductor stocks.

“anything but a surprisingly strong beat on earnings or a very positive outlook by management could threaten the run that we've seen in these semiconductor stocks like Nvidia like consumer tech stocks like apple because Taiwan semiconductor is where it starts with the manufacturer of those chips that are going to go into those products”

The YouTuber notes Warren Buffett's significant and quick sale of Taiwan Semiconductor shares, speculating that it could be due to concerns about geopolitical tensions with China over Taiwan or a tough outlook for semiconductor companies. He implies these are valid concerns for investors.

“Either he's worried about those geopolitical tensions with China over Taiwan or he sees just a tough time ahead generally for semiconductor companies or both.”

The YouTuber identifies TSMC as a critical component in the AI stack, specifically in the 'foundaries' and 'advanced packaging' layers. He highlights its strategic importance as the place where chips are made and notes that CoWoS capacity from TSMC is a major bottleneck, indicating strong pricing power and demand.

“TSMC in particular is one of the most strategically critical companies on the planet right now.”

The YouTuber recommends buying Taiwan Semiconductor (TSM) when its proprietary 'momentum squeeze' indicator signals building pressure and positive momentum emerges during a pullback. This technical approach aims to identify buying opportunities in quality companies when they are discounted, rather than chasing them after a significant run-up.

“Here's that same Taiwan Semiconductor we talked about earlier, TSM, on the chart now. Same exact data. The red dots show the momentum squeeze, which means pressure is building.”

The YouTuber recommends Taiwan Semiconductor (TSM) as the foundry that manufactures the chips powering AI models. He notes their raised 2026 revenue growth outlook to above 30%, indicating relentless demand for AI silicon.

“TSM, Taiwan Semiconductor, is how those chips get made. And they just raised their 2026 revenue growth outlook to above 30%. That's the foundry powering the AI silicon boom.”

The YouTuber acknowledges Taiwan Semiconductor as a world-class backbone business with real discipline and importance, despite not winning any rounds in the direct comparison. It holds a powerful position in the semiconductor supply chain, making it a significant company.

“Taiwan Semiconductor is still a world-class backbone business with real discipline and real importance.”

The YouTuber recommends buying Taiwan Semiconductors for the long term, viewing the current market pullback as a buying opportunity. They highlight TSM's strong levered free cash flow margin of 26.3% and its moat in leading-edge manufacturing, which makes it essential for the AI build-out regardless of market sentiment.

“That is why Taiwan Semiconductors, Nvidia, and Google matter for the long term. They sit under the entire stack so they can win even when one headline theme dies and the next one takes its place.”

The YouTuber identifies Taiwan Semiconductor Manufacturing Company (TSM) as a 'scarcity choke point' due to its critical role in manufacturing cutting-edge chips. He argues that even with great models and software, the inability to manufacture at global volume creates a moat that cannot be quickly copied, making it a strong long-term holding.

“Example, Taiwan semiconductors, ticker TSM. You can have great models and great software, but if you cannot manufacture at the cutting edge, you cannot ship at global volume.”

The YouTuber recommends Taiwan Semiconductor Manufacturing Company (TSM) as a foundational holding, highlighting its critical role as the foundry for most advanced chips globally. They argue that TSM is a 'choke point' for AI and tech buildout, benefiting from increased liquidity flowing into the backbone of the system. They acknowledge the geopolitical risk with China but consider it a calculated trade.

“When you own TSM, you are not buying a story. You are owning the choke point through which the entire AI and tech buildout flows.”

The YouTuber recommends Taiwan Semiconductor (TSMC) as a key player in the AI infrastructure, noting its high-performance AI chip capacity is booked solid through 2026. He argues that companies like TSMC, which are fundamental to AI development, will see significant revenue and stock price increases in 2026 as the substantial capital investments in AI infrastructure begin to yield returns.

“The names you should be considering. Nvidia, Meta, Google, Taiwan Semiconductor, Broadcom, Palanteer, AMD, Super Micro. Not hype, not hype chasing. Just clear conviction on companies building the AI backbone.”

The YouTuber is bullish on Taiwan Semiconductor (TSMC), emphasizing its critical role as the manufacturer for major chip designers like Nvidia and AMD. He notes its leading 2nm process, which offers significant power efficiency, crucial for data centers. Geopolitical risk in Taiwan is acknowledged as the primary concern.

“My thesis is bullish, risky environment, unmatched position. I want exposure to the engine room of AI.”

The YouTuber argues that TSMC is an essential infrastructure company, not a cyclical semiconductor stock, with strong financials, dominant market share in advanced chip manufacturing, and locked-in demand for years. The current stock pullback is attributed to geopolitical fears regarding Taiwan, which the YouTuber believes is an overblown risk and creates a buying opportunity for long-term investors. He plans to buy when his technical indicators confirm a favorable entry point.

“I'm watching, waiting, and when the indicators flash green, I'm buying. Small size, core position, long hold. This is not a trade. It's a long-term bet on the infrastructure behind AI.”

The YouTuber argues that TSMC is a strong long-term buy due to its dominant position in advanced chip manufacturing, essential for AI, and its elite financial performance (high margins, strong revenue growth). He believes the current stock discount is due to irrational market fear over geopolitical risks, which he quantifies as low probability, presenting a mispriced opportunity.

“Is TSMC a long-term buy? Here's how I look at it. No fluff, no hedging. The TSMC Bullcase, they're the only company on Earth that can manufacture bleeding edge chips at scale.”

TSMC is positioned as a key supplier for SpaceX's new AI chip, the AI 5, as they manufacture nearly all advanced chips. This makes them a critical component of the AI side of SpaceX's business, which the YouTuber believes is significantly undervalued by Wall Street.

“Every SpaceX chip will go through their factory. They're the most dominant company in the market in the world.”

The YouTuber would buy TSMC if not already fully invested, emphasizing its dominant 60% market share in chip manufacturing and critical role in modern technology. Its advanced packaging technology and booked capacities until 2026 give it immense pricing power, leading to a 50% operating margin. Despite its dominance, a forward P/E of 20 and expected 24.6% earnings growth result in a PEG ratio under 1, indicating undervaluation.

“Wenn ich nicht bereits eine volle Position TSMC investiert hätte und ich eh schon so stark in die Halbliter Branche ausgerichtet wäre, würde ich jetzt die Chance nutzen und Anteile weiter aufstocken.”

The YouTuber holds TSMC, with 151% gains, highlighting its position as the world's largest foundry. They emphasize its critical role in manufacturing chips for major tech companies like Apple, Nvidia, and AMD.

“Eine ähnlich große Position habe ich noch in TSMC, die 151% im Plus sind. Als weltweit größte Foundary fertigt TSMC die Chips für Giganten wie Apple, Nvidia und AMD.”

The YouTuber highlights TSMC as a top conviction buy, currently trading 25.6% below its all-time high. As the world's largest contract chip manufacturer, TSMC is crucial for the global tech infrastructure, producing chips for clients like Nvidia and Apple. The company demonstrated robust Q1 revenue growth of 35.3% and earnings growth of 53.2%, with analysts expecting 21.8% earnings growth, which the YouTuber believes could be surpassed. At a P/E of 23, TSMC offers an attractive entry, despite geopolitical risks between the US and China, which TSMC is mitigating by building new fabs in the US and Europe.

“Diese Aktie gehört zu einem meiner größten Positionen in meinem Depot und wird aktuell rund 25,6% günstiger im Vergleich zum Alzeit hoch gehandelt. TSMC ist der größte Halblatter Auftragsfertiger der Welt und einer der wichtigsten Akteure für die globale Techinfrastruktur.”

TSMC is listed as a semiconductor holding in the YouTuber's active portfolio. He considers it a quality company within the tech sector, fitting his investment approach of selecting businesses with robust models and long-term growth potential, particularly when market conditions allow for favorable entry points.

“Hier sehen wir viele Techunternehmen, wie z.B. Amazon oder Alphabet, aber auch viele Halplatteunternehmen wie KLA oder TSMC.”

The YouTuber suggests TSMC is a strong buy at its current discounted valuation after a 37.5% stock drop due to new tariffs. He emphasizes its dominant market share (64%), high profitability (40.5% net margin), and expected 22.46% annual earnings growth, despite geopolitical uncertainties and US efforts to localize chip production.

“Fakt ist aber, dass man die Aktien von TSMC jetzt zu sehr günstigen Bewertungen aufsammeln kann.”

The YouTuber is building his position in Taiwan Semiconductor Manufacturing (TSMC), highlighting its global leadership in semiconductor manufacturing and its critical role in producing advanced chips for tech giants. He points to strong revenue growth, high profitability, and future growth potential from new nanometer technologies, with a favorable PEG ratio suggesting undervaluation despite a high P/E.

“Das Unternehmen heiß Taiwan Semiconductor manufacturing und ist der weltweit größte Hersteller von Halbleitern.”

The YouTuber holds TSMC, the world's largest foundry, where companies like NVIDIA and Apple manufacture their chips. Despite political tensions, the stock has seen a 92% unrealized gain.

“machen wir weiter mit TSMC der weltweit größten foundry der Welt hier lassen unter anderem NVIDIA oder auch Apple ihre Chips herstellen trotz politischer Spannung zwischen Taiwan und China ist die Aktie 92% im Plus.”

The YouTuber briefly mentions TSMC as one of the two best plays in the market today, alongside Alphabet, implying a positive outlook without providing detailed reasoning in this segment.

“I think along with TSMC, these are the two best plays in the market today.”

The YouTuber recommends Taiwan Semiconductor as a buy, emphasizing its critical role in the tech industry, especially for AI chips, and its unmatched foundry capabilities. He points to its consistent 17% CAGR in revenue, expanding net income margins due to pricing power from high demand, and exceptional return on invested capital (25-30%). Despite not being as cheap as in the past, he considers its P/E of 17 reasonable for the world's leading chip maker.

“a price earnings multiple of 17 is not too much for to pay for the leading chip maker in the world. I don't think that position is going to go anywhere.”

Hoium recommends Taiwan Semiconductor due to its critical role as the world's most important chipmaker and its strong financial performance, including a 15.5% CAGR and high net income margins. He emphasizes its technological lead over competitors like Intel and its expansion into the US, which he believes will secure its position despite potential economic headwinds.

“I think TSMC is the kind of company that is just has no real competition in this space right now because they are so advanced in their semiconductor manufacturing.”

The YouTuber recommends Taiwan Semiconductor (TSMC) as a better AI play, arguing that as the primary manufacturer of Nvidia's chips, TSMC is raising prices in 2025, capturing more margin. He highlights its critical role in the AI chip ecosystem and its more attractive valuation with a forward P/E of 17, suggesting it's well-positioned for continued growth in advanced chip demand.

“Taiwan semiconductor is the company that makes nvidia's chips they are also raising their prices in 2025 because they know that they're the only company that can make these high-end chips”

Travis Hoium argues that Taiwan Semiconductor (TSM) is the top AI stock for 2025 because it is the world's leading manufacturer of high-end AI chips, serving all major tech companies including Nvidia, Intel, and AWS. He highlights TSM's pricing power due to its unique foundry capabilities and massive capital expenditures, which maintain its technological lead. Despite geopolitical risks, he believes TSM is too critical to the global tech supply chain for its operations to be significantly disrupted, and its valuation is attractive with a forward P/E of 18.

“I think the best place to be in artificial intelligence going into 2025 is going to be with a company that's making the chips that everybody needs that is time ON Semiconductor.”

The analyst believes Taiwan Semiconductor (TSMC) is a key supplier to the AI boom, manufacturing advanced chips for Nvidia, Qualcomm, Intel, and AMD. TSMC has indicated it will raise prices, which could significantly boost its revenue and margins, especially given the high margins of its customers like Nvidia. Despite recent revenue pullbacks and a higher valuation compared to 2023, TSMC's critical role and pricing power in the AI supply chain suggest significant upside potential.

“I still think this is one of the better companies to play the artificial intelligence boom right now because no matter who it is whether it's built in the cloud from all those suppliers whether it's chips that are becoming more advanced from Apple to do more on device Computing it's going to be tsmc who is going to be doing all the work to build those chips and building those fabrication facilities.”

Travis Hoium argues that Taiwan Semiconductor (TSM) is the best way to play the AI market due to its dominant position as the sole fabricator of high-end chips for all major AI players, including Nvidia, Meta, Microsoft, and Apple. He highlights TSM's strong financials, high margins, and superior valuation compared to Nvidia, suggesting that as more companies design their own AI chips, TSM's market will expand, providing a long-term tailwind.

“I still think Taiwan semiconductor is still the best play in artificial intelligence yes it's a little more expensive than it was a year ago and if the stock pulls back over the next year or two I would be happy to buy more but I just love the company's position and it has fabrication facilities that no one else can match at least today”

The YouTuber argues that Taiwan Semiconductor (TSM) is a critical, highly profitable company that manufactures most advanced chips for smartphones, graphics cards, and especially AI. Despite being a cyclical business, TSM has shown significant revenue and net income growth, with strong free cash flow. Its valuation is reasonable given its importance and high margins, making it a key long-term play on artificial intelligence growth, even considering geopolitical risks.

“longterm I think this is going to be one of the best ways to play artificial intelligence because of the role that it plays in building chips”

The analyst recommends Taiwan Semiconductor, highlighting its critical role in manufacturing advanced chips for AI and high-end goods. He emphasizes its phenomenal business growth, nearly 50% net income margin, and dominant position in technology, seeing no immediate competitors or decline in demand.

“long term this is going to be a company's that it's going to continue to grow because it's on the bleeding edge of chips and for the foreseeable future there's really no one else that can match their technology and their manufacturing capabilities”

Travis Hoium argues that Taiwan Semiconductor (TSM) is the best way to invest in AI due to its critical role in manufacturing chips for Nvidia and other potential competitors. He highlights its strong profitability with nearly 50% net income margin and a reasonable P/E multiple of around 15, suggesting it's a more stable investment compared to highly valued AI companies like Nvidia, while still benefiting from the overall AI chip demand.

“I think this is still the Best Buy in AI today.”

Travis Hoium argues that Taiwan Semiconductor (TSM) is a strong long-term buy due to its phenomenal profitability, high net margins approaching 50%, and consistent return on assets above 15% over the past decade. He highlights its critical role as the most advanced chip manufacturer for major tech companies like Apple, Nvidia, and Intel, and notes that the stock trades at a reasonable valuation of under 16 times earnings despite its strong market position and growth prospects in AI and new technologies.

“I think there's a lot to like whether you're interested in the growth from artificial intelligence or new technology use cases like autonomous driving Taiwan semiconductor is going to play a critical role in all these companies and I think despite being a very Capital intensive business which is kind of out of favor right now this is a phenomenal company to just simply Buy and Hold long term”

The YouTuber argues that Taiwan Semiconductor (TSM) is an underrated play in AI because it manufactures the advanced chips for all major AI players, including Nvidia, Qualcomm, Microsoft, Google, and Meta. He highlights strong revenue and net income growth over the past three and ten years, and notes that TSM trades at a more reasonable valuation (P/E of 16) compared to Nvidia, despite its critical role in the AI supply chain. The high demand for AI chips is expected to drive continued growth for TSM.

“if you don't have it on your radar now it's one to put on your radar for artificial intelligence because whether it's Nvidia Microsoft Amazon meta whoever wins in artificial intelligence Taiwan semiconductor is most likely the company that is going to make the chips for those companies.”

The analyst highlights Taiwan Semiconductor as the world's most valuable chip fabrication company, benefiting from high margins and positive free cash flow. He sees strong tailwinds from new businesses like artificial intelligence, ensuring demand for its chip manufacturing regardless of who designs the chips. Despite recent revenue slides, he views it as a long-term growth play.

“Taiwan semiconductor is going to be making those chips so that's going to be great for the business it's Revenue did slide a little bit in the most recent quarter but this is a cyclical business we know that and that should be expected long term this is going to be an absolute growth play and I love the position the Taiwan semiconductor has right now”

The analyst recommends Taiwan Semiconductor as a superior investment in the AI sector compared to Nvidia. He posits that regardless of which company (Nvidia, Microsoft, Apple, Meta) designs the custom AI chips, TSMC will likely be the foundry manufacturing them. This positions TSMC as a 'picks and shovels' play, benefiting from the overall growth in AI chip development without the specific risks associated with any single chip designer's market share.

“Taiwan semiconductor is a much better play because you know those chips those custom chips are going to be made in their factories.”

The YouTuber recommends Taiwan Semiconductor due to its dominant position in high-end chip manufacturing, serving major clients like Apple and Nvidia. He highlights its impressive growth, nearly 50% net margin, and a current valuation of only 14 times earnings, which he believes is cheap given the continued growth expected from AI and new chip designs.

“Taiwan semiconductor ton of growth over the last decade a lot of Tailwinds but I think that's something that will continue and it's a great buy given the cheap multiple that investors are getting right now”

The analyst highly recommends Taiwan Semiconductor, highlighting its critical role as the foundry for major tech companies like Apple and Nvidia. He emphasizes its significant lead over competitors, continuous investment in advanced foundries, and impressive financial performance, including a P/E of 14.5 and a 50% net income margin.

“Taiwan semiconductor has such a lead over its competitors it has such big customers like apple like Nvidia that it's just gonna steadily grow over time tremendous cash flow of 17.5 billion dollars from free cash flow perspective price to earnings multiple the best out of three these three companies at only 14 and a half.”

Travis Hoium recommends Taiwan Semiconductor (TSM) as a beneficiary of the shift towards on-device AI. He argues that as AI models become efficient enough to run on personal devices, the demand for custom chips, which TSM manufactures, will increase, making it a key player in the evolving AI landscape.

“It's going to be companies like Apple Taiwan semiconductor who's making the chips these custom chips that are going into phones”

The YouTuber identifies Taiwan Semiconductor as a 'picks and shovels' play for AI, as it is the leading semiconductor foundry for custom, high-end chips. As more companies develop AI-specific chips, TSMC is expected to be the natural choice for manufacturing, benefiting from the explosion in AI-focused GPUs and CPUs.

“tsmc is going to be the natural player to be building a lot of those chips and so this is going to continue to be just another Tailwind behind the cup.”

The YouTuber suggests TSMC, Taiwan Semiconductor, will experience continued high demand due to the increasing need for high-end chips for AI models. As AI use cases expand, there will be custom chip requirements that TSMC is well-positioned to fulfill.

“I think that's a company that's going to have continue to have a ton of demand as we you find more use cases for artificial intelligence because there will be custom needs for those chips to utilize the models that are available.”

The YouTuber suggests Taiwan Semiconductor as a key player because it fabricates advanced chips for many designers, including Nvidia and Apple. He believes the industry is moving towards a modular model where TSMC will be the powerful fabricator for custom AI chips designed by various companies, including future AI startups.

“tsmc is going to play a very key role in that”

The YouTuber recommends Taiwan Semiconductor as a long-term buy-and-hold investment due to its position as the world's largest chip maker and its strategic focus on contract manufacturing. This allows companies like Apple and Nvidia to outsource chip production, making TSM a valuable part of the supply chain. Despite a recent valuation increase, the company's earnings and dividends are expected to grow over time.

“I think this is still a great Buy and Hold investment the company is the biggest chip maker in the world and it has a great strategy because it focuses on just making chips.”

The analyst recommends Taiwan Semiconductor due to its dominant position as the leading chip foundry, benefiting from a superior business model compared to vertically integrated competitors. The recent stock pullback has made its 3.0% dividend yield and valuation more attractive, and geopolitical shifts, like the US's focus on domestic chip technology, could further strengthen its global advantage.

“this is the company that makes most of the chips that go into things like iPhones uh MacBooks now they're making videos chips basically the bleeding edge chip Foundry in the world”

The YouTuber is buying Taiwan Semiconductor (TSMC), emphasizing its dominance as the world's largest contract chipmaker, holding 70% of the global foundry market. TSMC's advanced packaging process (CoWoS) is critical for AI accelerators, with Nvidia securing over 70% of its 2025 capacity. The company's August revenue rose 33.8% year-over-year, solidifying its position as the 'toll booth' for advanced compute with both market share and pricing power.

“Every AI road map runs through a foundry and a packaging line, and TSMC dominates both of them.”

The YouTuber recommends Taiwan Semiconductor, highlighting its critical role as the world's largest contract manufacturer for semiconductors, essential for AI infrastructure. It has a very low PEG ratio of 0.61, the lowest in the group, and its stock is trading 5% below its 200-day SMA. Analysts see a 40% upside, reinforcing its undervalued status.

“Taiwan Semiconductors is the backbone for almost all of the AI infrastructure we see today. from GPUs and phone processors and even the internet of thing chips. They are such a giant in this contractor space that they have over 60% share in semiconductors with the next closest being at only 10%”

The YouTuber recommends Taiwan Semiconductor due to its 59% market share in semiconductors and its customer base of major AI growth companies. He notes the addition of two new plants and a planned 10% price increase in 2025, which will boost their already high 38% margins, suggesting analysts' 14% upside forecast is conservative.

“They've also had so much demand that they announced that they'll be raising prices up to 10% in 2025, which will keep their margins continuing upwards from their already high 38%.”

The YouTuber recommends Taiwan Semiconductor Manufacturing, highlighting its dominant market share (61%) in semiconductor foundry services, which are crucial for AI. He notes its strong year-to-date performance, a relatively low P/E ratio for the sector, and consistent EPS beats, suggesting upside potential as AI growth drives demand for semiconductors.

“Overall almost every company making money from AI has to rely on Taiwan semiconductor for their Hardware so it stands to reason that it's a great choice because All Ships rise with the tide”

The YouTuber recommends Taiwan Semiconductor, citing its dominant market share (over 59%) and high-profit margins (over 52%) in semiconductor manufacturing. He acknowledges geopolitical concerns but highlights the company's global expansion plans to mitigate risk, alongside its stellar historical performance and decent dividend yield for a tech company.

“the point is that there will be a lot of plants being built in hopes to minimize their risk but honestly there is no guarantee when it comes to politics and Waring Nations but on a brighter note their performance is Stellar across the past year threee and the five-year just like so many of the other stock from today and their dividend yield is fairly decent for a tech company at 0.85% where most tech companies exclude dividends because they happen to reinvest them back into the growth of the business”

The YouTuber is consistently buying TSMC on dips, viewing it as a critical component of the AI growth cycle. TSMC holds over 59% of semiconductor production with high margins. With Apple's push for AI in all devices requiring advanced chips and TSMC's upcoming 2-nanometer plants in 2025, the company is positioned for massive growth as major AI hardware players rely on its manufacturing capabilities.

“for me and my portfolio I am constantly buying into tsmc whenever there's a dip because I know that many of the top AI companies well they have to buy directly from them”

The YouTuber recommends TSMC due to its dominant market share (over 50%) in semiconductor manufacturing, making it essential for nearly all other tech companies. They note its more attractive valuation (23x P/E) compared to Nvidia, despite geopolitical risks associated with its location in Taiwan.

“From a point of valuation the price to earnings for tsmc is at 23x versus nvidia's at 131x which makes tsmc a better bet financially for stock growth.”

The YouTuber highlights TSMC as the undisputed leader in microchip manufacturing, essential for AI, comparing it to a 'picks and shovels' play. Despite past concerns about geopolitical risk, its recent growth of over 40% in revenue and 60% in net profit, coupled with a valuation of 25 times earnings (similar to the S&P 500 but with much higher growth), makes it an attractive investment.

“TSM tiene una una ventaja competitiva a la hora de fabricación de microchips muy pequeños con las tecnologías de 3 nanm pues casi casi más delgado que un cabello humano, para poder meter muchos microchips en un espacio muy pequeño y que esos microchips tengan un alto rendimiento para poder entrenar a esas inteligencias artificiales.”

The YouTuber recommends TSM (Taiwan Semiconductor) as a strong long-term play, expecting it to be a significant beneficiary in the quantum computing space due to its established position. He argues that current industry leaders will adapt and maintain their dominance in new technological frontiers.

“TSM, don't sleep on them, okay? AMD, please don't sleep on AMD.”

The YouTuber identifies Taiwan Semiconductor as a 'play worth playing' for making money. He points out an inverse Head and Shoulders pattern on the chart, suggesting a measured move could take it from $182 to $200, advising to give it some time to play out.

“look at this 163 they popped up to 182 what does that make right there guys that's an inverse Head and Shoulders you see the left shoulder the head the right shoulder so this should be I told you guys about measuring moves this should come to 200 from 182 to 200 give yourself some time for that to play out”

The YouTuber suggests Taiwan Semiconductor as an AI play, noting its recent strong performance. He advises buying it at a lower price point, specifically around $169 or 3-5% below its current high, to get a better entry.

“look at this the low of the day was 169 so that I would rather you buy at 169 and 173 does that make sense and then of course you can always get in 3 to 5% lower than this High number right here”

The investor recently added TSMC to his portfolio with a small position, indicating an exploratory investment in companies he follows and believes in for future returns.

“ho aggiunto tsmc”