Should I Buy Taiwan Semiconductor (TSM)? — Finance YouTuber Analysis

The YouTuber would buy TSMC if not already fully invested, emphasizing its dominant 60% market share in chip manufacturing and critical role in modern technology. Its advanced packaging technology and booked capacities until 2026 give it immense pricing power, leading to a 50% operating margin. Despite its dominance, a forward P/E of 20 and expected 24.6% earnings growth result in a PEG ratio under 1, indicating undervaluation.

“Wenn ich nicht bereits eine volle Position TSMC investiert hätte und ich eh schon so stark in die Halbliter Branche ausgerichtet wäre, würde ich jetzt die Chance nutzen und Anteile weiter aufstocken.” — ▶ Watch clip

The YouTuber holds TSMC, with 151% gains, highlighting its position as the world's largest foundry. They emphasize its critical role in manufacturing chips for major tech companies like Apple, Nvidia, and AMD.

“Eine ähnlich große Position habe ich noch in TSMC, die 151% im Plus sind. Als weltweit größte Foundary fertigt TSMC die Chips für Giganten wie Apple, Nvidia und AMD.” — ▶ Watch clip

The YouTuber recommends buying Taiwan Semiconductor (TSM) when its proprietary 'momentum squeeze' indicator signals building pressure and positive momentum emerges during a pullback. This technical approach aims to identify buying opportunities in quality companies when they are discounted, rather than chasing them after a significant run-up.

“Here's that same Taiwan Semiconductor we talked about earlier, TSM, on the chart now. Same exact data. The red dots show the momentum squeeze, which means pressure is building.” — ▶ Watch clip

TSMC is positioned as a key supplier for SpaceX's new AI chip, the AI 5, as they manufacture nearly all advanced chips. This makes them a critical component of the AI side of SpaceX's business, which the YouTuber believes is significantly undervalued by Wall Street.

“Every SpaceX chip will go through their factory. They're the most dominant company in the market in the world.” — ▶ Watch clip