Summary

• Taiwan Semiconductor has surged 47% in six months, vastly outperforming the benchmark’s 10% gain.
• TSM’s stock appreciation is underpinned by robust earnings growth, not speculative overvaluation, trading at a modest 13% premium to sector median P/E.
• I maintain a Strong Buy rating, citing TSM’s leadership in the AI revolution and outstanding recent quarterly performance.
• Despite acknowledging risks, I see no structural concerns and believe demand and market expansion will drive further upside.

I am happy with how my bullish thesis developed so far with Taiwan Semiconductor (TSM). Six months later, the stock is up 47% since my previous coverage while the benchmark has

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in TSM over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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