TSMC(US:TSM) The Motley Foolยท2024-11-26 14:53Core Viewpoint - Steven Cohen of Point72 Asset Management has significantly increased the fund's investment in Taiwan Semiconductor Manufacturing Company (TSMC), indicating a bullish outlook on the semiconductor industry, particularly in relation to artificial intelligence (AI) [1][2][3]. Company Overview - TSMC is a leading foundry that manufactures chips for major semiconductor companies such as Nvidia, AMD, and Intel, playing a crucial role in the production of advanced chip technology that powers AI applications [5][6]. Market Opportunities - The global semiconductor foundry market is projected to grow at a compound annual growth rate (CAGR) of 8.5% from 2024 to 2033, reaching a total addressable market size of $276 billion by the early 2030s. TSMC currently holds a dominant 62% market share in this sector [8]. - The global GPU market is expected to exceed $1.4 trillion by 2034, with TSMC positioned to benefit from the ongoing innovation in GPU designs by major companies [8][9]. Competitive Position - TSMC's existing relationships with leading chip manufacturers and its substantial market share provide a strong foundation for continued growth as demand for foundry services and GPUs increases [10]. Valuation and Investment Perspective - TSMC's forward price-to-earnings (P/E) ratio is currently 21.5, up from 16.3 a year ago, reflecting a warranted valuation expansion due to its strong market position and growth potential [11]. - TSMC is viewed as a compelling buy-and-hold opportunity for long-term investors, suggesting that now may be an opportune time to invest [12].