I don’t know why anyone can think a multiple of 15x is fair for a company with no competition at the leading edge, has a 90% share of the leading edge and half of everything else, almost insurmountable barriers to entry, both intellectual property and capital, and which serves as the manufacturing arm of much higher multiple companies like NVDA, AMD, aapl and virtually all of the fabulous fabless sector, and is essential to life on planet earth as we know it?
Ask yourself also what would happen if a Taiwanese invasion occurred and it’s fabs went off-line… what would happen to Apple, NVDA, qcom, AMD, MRVL etc. Taiwan accounts for over 20% of all worldwide semiconductor production, and almost 50% of OSAT production globally with TSM alone for over 50% of foundry with 90% of leading edge.
The risk to Taiwan is the risk of the entire semiconductor sector, which means a risk to the entire global economy. Trying to assume or say that the risk a specific to TSM is extremely misleading. How long will the global economy last when one of the leading semi providers can’t make any chips? When half the OSAT capability is offline?
In addition to being a manufacturing arm of the entire semiconductor sector, hence being a lot more diversified, and of having a better competitive positioning than any of its customers, being essential to the operations of every single one of his customers, being essential to the operation of the world economy, while having its revenue double in the next seven years, if not earlier, the company trades at a measly 13-14x PE? $Taiwan Semiconductor Manufacturing(TSM)$
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