Rate Of Return
Buffett's senior apprenticeThat's right, the moat is still there, it's just affected by the current sentiment. If it weren't for geopolitical issues, and if it were a local company, then the price wouldn't be just this much.
$Taiwan Semiconductor(TSM.US) $Intel(INTC.US)
1. TSM's fundamentals are very strong. Its revenue and profits are actually still going to be very robust, and the growth rate won't even slow down.
However, the key issue lies in the valuation multiple.
2. In the past few days, it and Intel have formed paired trades several times, with Taiwanese stocks surging while US stocks remained completely flat or even declined. This proves that as long as there is a crack in the narrative regarding its monopoly position, Wall Street will question whether it deserves a high valuation. But how much it will fall is unknown.
3. There's another potential factor: Donald Trump's visit to China. Taiwan will definitely be mentioned. Actually, in theory, if Trump shows goodwill to China in this regard, I think it should reduce risk. But how the market interprets it, and if the relaxation goes too far, it could also be interpreted as other risks.
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
