$Taiwan Semiconductor Manufacturing(TSM)$
1) It is a manufacturer vs designer. The profit margins are lower than Nvidia and AMD who are fabless (think of all the people, equipment involved)
2) Related to 1, the company always has to re-invest huge sums of money in R&D and equipment to stay on the leading edge and make smaller nodes. Just look at how much of their operating profit they re-invest into this.
3) Geo-political tensions. This has been a looming axe for decades and will remain so for a while -- enough to make many big investors vary of pouring too much capital into the stock
4) It is non-American. For whatever reason, international companies trade at a discount. Especially asian ones
With all of that, it is apparent TSM won't trade at Nvidia levels. That being said, still a solid company with record of beating expectations and I will continue being long
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- EarlBoyle·05-06TSM is a solid company but don't expect Nvidia-like growth.LikeReport