TSMC: The Value Stock Hiding in the AI Hype - Trading at a Lower P/E Than JNJ, ISRG and GE
TSMC trades at 27.4x trailing P/E, below its own 2-year median and below comparable quality stocks like J&J and ISRG, while benefiting from a near-monopoly in leading-edge semiconductor manufacturing and direct exposure to growing AI infrastructure demand. Despite 59.4% EPS growth over the past year, the market may be underestimating its earnings power.
At post $431.89·Now $417.58-3.3% since postedas of Oct 23, 2:46 PM ET
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TSMC’s world and we are all just living in it
TSMC's dominant position in advanced semiconductor manufacturing, combined with its pure-play foundry model and unmatched expertise and scale, creates a structural competitive moat that justifies sustained pricing power and long-term outperformance versus fragmented competitors like Intel and Samsung who must divide focus across multiple markets.
At post $420.22·Now $417.58-0.6% since postedas of Oct 23, 2:46 PM ET
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Long 100 shares of TSM
Long TSM $460C exp Oct 16 · 13 contracts
TSM Earnings: 0-2 So Far, Surely I’m Due
After two prior earnings losses, the author is bullish on TSM's earnings catalyst and underlying business fundamentals. He expects low expectations to result in an upside surprise, with a hybrid position of 100 shares for stability and 13 short-dated call contracts for leveraged upside exposure.
At post $444.35·Now $417.58-6.0% since postedas of Oct 23, 2:46 PM ET
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TSMC is the Hormuz Strait of semiconductors. I moved 30% of my portfolio over today.
TSM is severely undervalued relative to megacap peers due to geopolitical risk premium that is overblown; the company's 90% market share in advanced node manufacturing, massive R&D investment, and critical position in AI chip supply create a structural moat. With a 3-5 year horizon, TSM's valuation should re-rate significantly as it diversifies geographically and continues to dominate despite macro AI capex concerns.
At post $418.45·Now $417.58-0.2% since postedas of Oct 23, 2:46 PM ET
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$TSMr/ValueInvestingDiscussionbullish u/sum_dude44 · 153d ago1 prior · 50% at 3mo Ran a screen on Claude for stocks that hit Peter Lynch criteria for a properly valued stock and Congress Long Positions
TSM meets both Peter Lynch's value criteria (PEG ≤1, low debt) and shows strong Congressional buying interest, suggesting it is properly valued with institutional tailwinds.
At post $412.32·Now $417.58+1.3% since postedas of Oct 23, 2:46 PM ET
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“still bullish on tsm”
Today I sold half of my semi etf holdings which i held for 4 years
The author remains bullish on TSMC as an exception within an otherwise overvalued semiconductor sector, implying confidence in its competitive moat and differentiation.
At post $399.80·Now $417.58+4.5% since postedas of Oct 23, 2:46 PM ET
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HARD TO IMAGINE, BUT HERE IS YOUR CHANCE GETTING PAID SHORTING TECH - TSM
Supply constraints in the chip sector will negatively impact TSM as the first victim. The author is taking a bearish position expecting downside from these structural constraints.
At post $411.68·Now $417.58+1.4% since postedas of Oct 23, 2:46 PM ET
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I hear that everyone’s a millionaire now - $2M
Author holds TSM as part of a $2M portfolio that has appreciated significantly. Despite expecting near-term market pulldown, maintaining long stock position while hedging with covered calls.
At post $419.50·Now $417.58-0.5% since postedas of Oct 23, 2:46 PM ET
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