Taiwan Semiconductor: Buffett Overhang Is A Gift
- TSMC has traded weak over the last several months on news that Warren Buffett unloaded shares after making an initial investment last year.
- The chip manufacturing giant is set to ride the AI chip boom, with the TAM set to surge in the years ahead.
- The stock remains incredibly cheap at 13.5x forward EPS targets, a 50% discount to Apple with similar geopolitical risks from China.
In no huge surprise, Warren Buffett and Berkshire Hathaway (BRK.A, BRK.B) sold out of a remaining small position in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). Buffett had second thoughts on investing in a company with a homeland targeted by the Chinese Communist Party, but most technology companies face similar risks. My investment thesis remains ultra-bullish on the chip manufacturing stock, as the investment firm selling out has pressured the shares.
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