TSM

The next stock I will highlight as an undervalued semiconductor stock is Taiwan Semiconductor Manufacturing Company (TSMC). This is the company that connects all these things together.

If you are thinking of companies like Broadcom, Marvell, Qualcomm, Nvidia, AMD, and Apple, all of these companies rely on TSMC for at least some of their products.

The emergence and spread of proxy artificial intelligence was an additional incentive for Taiwan Semiconductor Manufacturing Company (TSMC), which was already experiencing a surge in demand as a result of the accelerators being used in these data centers.

As a result, Taiwan Semiconductor Company is increasing its investments, adding an additional $100 billion in Arizona to build several manufacturing facilities to meet this growing demand.

But does all this make TSMC shares an investment opportunity to buy, or is it too late and has the share price risen enough to offset all this increased market demand for the company?

when I think about how much how much money I want to put into a position like Tasmea right now, because I think that Tasmea has a very good chance of producing like 50% returns over the next year.

So part of my brain is like, well man, I should just buy like literally as much as I possibly can. Like make this thing 40% of my portfolio, 50% of my portfolio. Why not, right?

Like why not? I feel I have so much conviction. I think it's going to produce 50% return. So why not just make it a ridiculously large position and I'll make a a shitload of money as Tasa's CEO would say.

And in Taiwan, you have this amazing company. It's a very good company. TSMC currently makes up 13% of the index. It has risen from 4.5% two years ago to 13% today.

It is trading at 65 times its cyclically adjusted price-to-earnings ratio. I think this is a very high number. But I don't think it's limited to TSMC.

This means that the real winners are the companies that supply both producers. Taiwan Semiconductor Manufacturing Company (TSM) manufactures chips for both sides, with two-thirds of its revenue now coming from artificial intelligence and high-performance computing.

Taiwan Semiconductor Manufacturing Company (TSM) manufactures chips for both sides, with two-thirds of its revenue now coming from artificial intelligence and high- performance computing.

The first AI stock I will be showcasing in this video is Taiwan Semiconductor Manufacturing Company (TSMC). I have calculated the fair value of this stock at $609 per share , while the market price is only $416.

Therefore, I have calculated a growth rate of more than 46% for Taiwan Semiconductor Company's stock over the next 12 to 18 months. Of course, one of the biggest positive factors surrounding this company is technological innovation.

This goes beyond the scope of artificial intelligence.