Trade Alert: Bought Taiwan Semiconductor (TSM) $160, Long Term Buy 3-5 years. Target 15-16% return per year.
First recommended and bought at $128 in March, added more.
I know there are always geopolitical fears, but if China invades Taiwan or harms TSMC in any way a) We’ll have far bigger problems to worry about b) It’ll effect the entire semiconductor industry all the big ones will suffer.
I thought the price was excellent, I don’t believe anyone can even come close to replicating their business, they have 62% market share and the next 5 total up to 38% – that includes Samsung. Besides the scale, its also innovation – Apple and Nvidia are never going to trust the smaller guys to produce the newer 2,3 and 5nm nodes in cell phones, GPUs etc. (Maybe Samsung but they are 10-15% TSM’s size.
Here’s the complete article.