Taiwan Semiconductor Manufacturing Company Limited; TSM (TSMC) is the world's largest semiconductor foundry and contract manufacturer. TSMC's consumers include Apple, AMD and Nivida, to name a few. In view of the emerging artificial intelligence boom, it has thrust TSMC to an even higher level of semiconductor businesses. Latest expansion of TSMC includes the $40 billion investment in Phoenix, Arizona to build two advance semiconductor manufacturing fabrication facilities. Plans have been made for the 3rd Fab.
I first bought TMSC shares in Jul 2024 at abt $182. And continue to buy some shares when it dips to abt $168. On average, my overall purchase is abt $186/share. Investment seems late as TSMC has rally from early 2024 (~$100). However, I have decided to maintain it for the longer term in consideration of the AI boom and associated demand for high end semiconductor AI chips. Moreover, news stated that the AI growth is projected to increase till 2030 (ref.: statista.com > US$826 bil in 2030). Hence the outlook for demand of the semiconductor chips looks quite bright ahead.
Currently, the last done price of TSMC is abt $207 which is abt 11% gross profit for me. It is quite significant for me. I think that TSMC would continue to move upwards in view of above AI demand considerations. I guess price may be in a normal range of abt $220 to $240 by mid 2025. Similarly, other semiconductor counters should rise such as Nivida, etc.
Nevertheless, do consider to set a target price according to your needs and expectations. There are many other factors that could largely influence share price such as geopolitical, FED interest rate and trade war to name a few. It is a challenging investment environment these days interconnected by social media, online news, etc. It is also good to have other types of counter for diversification such as Banks or Reits.
Cheers and have a great Merry Christmas and a Happy New Year 2025. Enjoy your celebrations.
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