QUOTE(ozak @ Oct 17 2020, 10:03 AM)
TSM all time high with good profit announce. No competitor and full production of their chipset.
I m waiting it to pull down abit and go in. I only discover TSM recently as I thought it didn't list in US. Have been follow this company quite a while.
NVDA almost hit the ceiling of 600 from some analysis. But believe it still can go high. And they start to use TSM chispset. Brought few month ago with good profit now.
Just go in both.
TSMC is a very good company. They are the only ones with stable mass manufacturing with low error rates for 5nm chips, and ahead of Samsung/SMIC. Intel, etc will also go to TSMC in near future for chips.
However a couple of risks, Taiwan factor (risk of war) and success of SMIC (unlikely for now due to China/US Tech War, but never discount the power of centralized resource). Currently TSMC business so good they are expanding like crazy to meet demand, looks like our gloves factory expansion.
Personally I also target TSMC, but due to the ADR fee I decided to go AMD/NVDA too (already exited position with very small profit). Instead my coverage for TSMC goes to those Unit Trusts Fund that cover semi conductor industry.
PS5 and the renewed GPU/CPU from AMD and Nvda will carry most of the chips. Not to mention Apple exclusively for 5nm chips. But Samsung lately also claimed they achieve mass production for 5nm chips. Qualcomm 875 chips will be from Samsung initially if I am not wrong.
Oh TSMC also (some say pressure from US) set up new factories in US, mainly for US military supply. Yes, all the high tech equipment and weapons need chips to run...
If trade war escalates with China however, TSMC will also be one of the first few get hit severely (actually all will get hit, AMD, NVDA, Apple etc).
Good company with tons of profits and share dividend. If only valuation not so high and ADR fees.... Trade with care, somehow I feel China will retaliate after the US election if the sanctions against big T from China continues.