$Taiwan Semiconductor Manufacturing(TSM)$
hmmmm.. I wonder who’s building their custom AI chip for them? Meta is going further down the road with their custom AI chip rollout for their major platform shift centered around AI. Google, Microsoft, and Amazon are on similar paths. Whether Nvidia or AMD chips are effected by this dynamic doesn’t matter because at the end of the day TSMC is building these high value custom AI chips for ALL of the above. Qualcomm and Intel are also going to add more of a catalyst with their own AI chips that TSM manufactures.
Another factor, Apple is purportedly nearing production ramp of their M4 processor, which will be a shift in 2H24 with respect to ratcheting up AI capabilities for all levels of Apple laptops and iPhone16.TSM will be making these chips exclusively for Apple. I expect Microsoft will step up their efforts on their proprietary AI chip. In my view, it’s a good time to be the leading chip manufacturer in the world that nobody can come close to competing with.
The world's most indispensable company still looks ridiculously cheap from a valuation perspective considering the long-term prospects this decade.
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