Why Redditors Favor TSMC Over Nvidia, Super Micro Computer, ASML, And Intel
A recent post on the Reddit handle r/wallstreetbets ignited a discussion about Taiwan Semiconductor Manufacturing Company (NYSE:TSM). Redditors discussed TSMC’s unique position in the semiconductor industry.
Users of Reddit also weighed in on why TSMC might be a solid investment. Key catalysts included its strategic importance, global expansion, and unparalleled yields.
Why TSM Over Others?
TSM / TSMC – Investing in TSM is investing in America
byu/beepboopthrowaway699 inwallstreetbets
The post made a case for TSMC over other semiconductor giants like Nvidia Corp (NASDAQ:NVDA), Super Micro Computer Inc (NASDAQ:SMCI), ASML Holdings (NASDAQ:ASML), and Intel Corp (NASDAQ:INTC).
Related: Best Long-Term Semiconductor Stocks According To Redditors: Favorites Beyond Nvidia
Key factors included:
- TSMC’s robust yields
- Western-friendly approach with global fabs
- Belief that it is less susceptible to geopolitical tensions, especially involving China
Redditor Responses
- User Cid-Itad supported the idea of buying TSM shares for the long term. Emphasizing that semiconductors are here to stay, the user said that TSMC is the dominant chipmaker with majority ownership held by U.S./EU investors.
- User CptKoons countered the notion of TSMC being solely a Western company. He highlighted its crucial role in Taiwan’s national defense strategy. Geopolitical concerns and potential government entanglements were cited as factors to consider.
- User waymorerocks provided detailed insights into TSMC’s positive outlook, including high demand, strong earnings guidance, and global expansion plans. The user also highlighted TSMC as a critical player in AI and downplayed concerns about China’s influence.
