Looking at TSM as a beginner, I'm struggling to understand why it doesn't get nearly as much attention as Nvidia, Microsoft, Amazon, etc.
Consider the following:
* **Valuation:** Forward P/E of approximately 20.27× (on par with Nvidia)
* **Moat:** A near-monopoly in leading-edge semiconductor manufacturing, with enormous barriers to entry.
* **AI exposure:** Essential to virtually every aspect of the AI revolution, from data centres and autonomous vehicles to robotics.
* **Regardless of who wins AI:** Whether Nvidia, AMD, Google, Amazon or another company dominates, TSMC stands to benefit because so many depend on its manufacturing capabilities.
China risk aside, what am I missing? Why doesn't TSM attract the same enthusiasm as other AI giants, being the biggest beneficiary of the entire AI buildout and beyond?
Att current valuations, do you consider TSM one of the best risk/reward opportunities for the next 5–10 years? Is there considerable upside remaining?