Taiwan Semiconductor: Strong AI Demand Signs

Summary:

  • Taiwan Semiconductor trades at a discount despite strong growth, driven by Nvidia’s booming AI GPU demand, with August sales up 33% YoY.
  • Concerns over China-Taiwan tensions keep TSMC undervalued, yet the stock remains poised for a breakout past the $190 resistance.
  • Apple’s flattish demand contrasts Nvidia’s explosive growth, positioning Nvidia to become TSMC’s top customer, possibly by 2025.
  • The stock trades at only 22x 2025 EPS estimates, making TSMC a prime investment for capitalizing on the AI boom.

Artificial Intelligence digital concept

AlexSecret

With a top customer talking about insane demand, Taiwan Semiconductor Manufacturing Company Limited aka TSMC (NYSE:TSM) still trades at a massive discount. The stock has recently run into strong resistance at $190, but the news should help provide the


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