Anyone else getting in on TSM?
Seems oversold, we are close to pre-earnings levels. Great profit margin around 40%, growing revenues, stable debt, and forward p/e around 21. Seems like a steal!
I get the onshoring trade, but lets get real, NVDA has been working with TSM for a very long time and their processes won't be replicated overnight. The standards for these chips are astronomical to get it right and NVDA has accelerated their manufacturing process with synopsys to speed up their progress.
I get the geopolitical risks as well, but isn't big boy T supposed to bring calm and comfort to the world (or so his supporters think).
Papa Elom also using NVDA chips and likely wants to protect the pipeline as TSM gradually creates new fabs in the USA. As long as they are making progress towards this goal, seems like a reasonable investment. Big boy and Elom wont let the pipeline get disrupted overnight, its too valuable and there would be huge repercussions for china I am sure.
Tarrifs likely to be paid by NVDA and hyperscalers but sure they will get a carve out and pay no tarrifs.