TSMC: The Market Is Still Surprisingly Mispricing Its AI Chipmaking Dominance (Rating Upgrade)
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JR ResearchInvesting Group LeaderFollow5ShareSavePlay(12min)CommentsSummaryUpgrading TSMC back to a Buy, supported by robust AI-driven demand and resilient operating margins near 50% through 2027.TSM's CapEx is projected to rise to $50B by FY2027, reinforcing its technological moat and ability to meet surging AI and smartphone chip demand.Despite competitive pressure from Intel and Samsung, TSM's proven yields, advanced packaging, and strategic pricing maintain its market leadership.Geopolitical risks persist, but TSM's valuation at 19.7x forward P/E appears reasonable given its critical role in the global chip supply chain. Getty Images TSMC Isn't Afraid Of The Competition A lot is going on right now for investors of Taiwan Semiconductor Manufacturing Company Limited (TSM). Not only do they have to contend with resurgent Intel (INTC), theyThis article was written byJR Research45.83K FollowersFollowJR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP. He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks. He focuses on identifying growth investing opportunities that present the most attractive risk/reward upside potential. His approach combines sharp price action analysis with fundamentals investing. He tends to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities. He runs the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. He focuses on ideas that has strong growth potential and well-beaten contrarian plays, with an 18 to 24 month outlook for the thesis to play out. The group is designed for investors seeking to capitalize on growth stocks with robust fundamentals, buying momentum, and turnaround plays at highly attractive valuations. Learn moreAnalyst’s Disclosure:I/we have a beneficial long position in the shares of NVDA, AAPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.