TSMC STOCK ANALYSIS - 2X STOCK! Price Target $255/share!

TL;DR

TSMC's stock has outperformed its competitors in the past 5 years, and its future growth prospects are strong due to high demand for semiconductors and its investment in advanced node technologies.

Transcript

Hello everyone, this is Victor here. Welcome to the Intelligent Investor Channel where you will learn about stock investing and personal finance that will help you become a great investor. As a long-term investor, I always like to look for “the best companies in the fast-growing tech industries to invest in the long-term.” One of the best tech comp... Read More

Key Insights

• ✋ TSMC's stock has outperformed its competitors due to its focus on advanced node technologies and its ability to meet the demand for high-performing computing products.
• ✋ The company's future growth prospects are strong, driven by the demand for advanced technologies in smartphones, high-performance computing, automotive electronics, and IoT devices.
• 💄 TSMC is undervalued relative to its competitors, making it an attractive investment opportunity.
• 👻 The company's significant capital budget investment in 2021 will contribute to its future growth and allow it to stay ahead in advanced node technologies.
• ✳️ TSMC's main risks include potential antitrust allegations due to its dominant market share in the foundry industry.

Questions & Answers

Q: Why has TSMC's stock performed better than its competitors, Intel and Samsung, in the past 5 years?

TSMC's stock has outperformed because it has consistently invested in advanced node technologies, allowing it to meet the demand for high-performing computing products. Intel's manufacturing defects and delays have caused it to fall behind in the industry.

Q: How is TSMC's stock valuation compared to its competitors?

TSMC is currently undervalued, with a higher P/E ratio and PEGY ratio compared to Intel and Samsung. The PEGY ratio suggests TSMC is fairly valued or cheaper, considering its higher growth rate.

Q: What are the main growth areas driving TSMC's growth?

TSMC's growth is driven by the demand for advanced technologies in smartphones, high-performance computing, automotive electronics, and IoT devices. These industries are expected to experience significant growth in the next few years.

Q: What is TSMC's capital budget and how does it contribute to future growth?

TSMC's capital budget for 2021 is between $25 billion and $28 billion, mainly allocated to investment in advanced node technologies. This investment will allow the company to stay ahead of competition and capture future growth opportunities.

Summary & Key Takeaways

• TSMC's stock has consistently outperformed Intel and Samsung Electronics in the past 5 years, with a 475% increase compared to their respective increases of 103% and 269%.

• The company is currently undervalued relative to its competitors, and its PEGY ratio suggests it is fairly valued or even cheaper.

• TSMC's management expects high revenue growth in the next 5 years, driven by demand for advanced technologies in smartphones, high-performance computing, automotive electronics, and IoT devices.

• The company plans to invest a significant capital budget in 2021 to stay ahead in advanced node technologies and capture future growth opportunities.