TSMC: Bizarrely Undervalued (Archive)
TSMC’s market-leading moat, resilient margins and easing geopolitical risk remain deeply mispriced.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- TSMC is poised to gain market share from Samsung, with potential collaborations with US chip giants further strengthening its position.
- Despite gross margin pressures, TSMC's profitability has exceeded expectations, leading me to upgrade my long-term gross margin outlook to 57%-59%.
- Reduced geopolitical risks and attractive valuations suggest potential for multiple expansion, making a compelling case for undervaluation of TSM stock.
- The TSM vs. SPX500 technical charts show an ideal buy setup.
- Consensus estimates seem to be implying earnings downgrades. Whilst this is a risk, I think it is more likely that the market may be mispricing this stock.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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