I might be a retail idiot but I can read a balance sheet and the math on TSMC makes the rest of the sector look delusional. Everyone is piling into Nvidia and Broadcom at 40x-60x earnings but they seem to forget that none of them exist without TSMC. The entire AI revolution runs through Taiwan.
Here is why I’m loading up:
A. It’s trading at a forward P/E of ~28 while locking in 50% margins.
B. The PEG Ratio is sitting at ~1.0. You literally cannot find that kind of growth-at-a-reasonable-price ANYWHERE else in big tech.
The (we never know when or if) China Risk discount is overrated. My take: If China invades, your Nvidia stock goes to zero anyway. The entire sector collapses. So why pay a 100% premium for Nvidia when the geopolitical downside is exactly the same?