1 Stock Top offers incredible value at this time!

With many actions in the boiling in recent weeks, opportunities have begun to appear. One that I see is in Taiwan semiconductor manufacturing company (NYSE: TSM), a growth company that lies the levels of shares close to value after falling 21% in two months.

However, in the long term, the actions of Taiwan semiconductor, or TSMC, have done splendidly. More than 300% have been fired in six years, since the main position of the company manufactures advanced microchips has made it integral for the digital revolution.

Recently, the growth of TSMC has been promoted by the rise of artificial intelligence (ai). Works in close collaboration with Micro Advanced Devices, Nvidia, BroadcomOpenAI and others, while doing the last chips feeding AppleIPhone line 16.

In fact, TSMC now orders approximately 67% of the global third party casting market, and more than 90% of advanced chips!

<h2 class="wp-block-heading" id="h-surging-ai-demand”>The growing demand for ai

How does that translate into profits? Very good. Last year, revenues increased 30% year after year to $ 90.1 billion, while earnings per share increased by almost 40%. The net profit margin reached an incredible 40.5%, compared to 38.8% the previous year.

However, not everything was positive. Both its internet of things (IoT) and the digital consumer electronics platform segments decreased by 15% and 6%, respectively, in the fourth quarter. And the company still experiences the cyclical demand for automatic chips sales, computer and smartphones.

However, any softness in parts of the business is easily compensated by the growing demand for ai chips.

Executive director CC Wei commented: “Even after more than tripling in 2024, we predicted our income from ai accelerators to double in 2025 as a strong increase in demand related to ai continues as a key facilitator of ai applications. “

Weakening of the silicon shield

An inevitable risk with TSMC is geopolitics. Its most advanced chips manufacture, including its 3nm and upcoming 2NM nodes, it still takes place in Taiwan, approximately 90 miles away from China Continental.

Historically, Taiwan's domain in chips manufacturing has protected the island of a Chinese invasion (the so -called “silicon shield”). This is because the result would be a shortage of chips and chaos in global trade, thus threatening China's prosperity.

To reduce Taiwan's dependence, President Trump has encouraged TSMC to establish advanced manufacturing facilities in the United States. While this improves the resilience of the supply chain for US clients, the silicon shield could also weaken.

In other words, if the manufacture of VSMC avant -garde chipas moves abroad, Taiwan becomes less essential and potentially less protected.

Meanwhile, the colossal commitment of $ 165 billion of the company (until now) with the manufacture and research of the United States could lead to margin pressure in the future.

Gango assessment

This dynamic could explain the valuation of the action. It is currently quoted at 16.5 times this year's prognosis profits, falling to about 14 for 2026 and 11.5 by 2027.

Okay, here there are geopolitical risks, but this high quality action seems to be for sale for me. Especially because TSMC is established for greater growth through the enabling of the development of megaters such as IA, IoT and Robotics.

In addition, electric and autonomous vehicles require many more semiconductors than gasoline cars. Tesla Collaborate with TSMC to produce chips for its full autonomous driving system.

Unfortunately, TSMC actions are not eligible for Isa actions and actions. But I think it is worth considering a personal pension (SIPP) inverted.