Taiwan Semiconductor MFG. (TSM)

Checks all the boxes for his firm: big insider ownership, beautiful balance sheet, high FCF, high ROIC, decent valuation, gigantic moat. No one can do what it does. Overhang: what if someday China invades Taiwan? It would be bad not only for TSM, but also every AI-type company. Guiding for 20% compound growth over next 5 years.

His firm has always stayed away from semis, as they're very cyclical and easily disrupted (though this name seems more insulated). Capital intensive. He's on the fence, but feels overall that the better way to play AI is to own the Mag 7.

Shares will bounce and news will be good this week.

Undisputed leader of semiconductor foundries. 51-52% market share, which it will maintain due to its huge economies of scale that competitors can't match. Very deep pockets. A bit cyclical. Yield is 1.4%.

He remains bullish. Whatever semi chips are needed, TSM continues to make them. They are the leader here. It remains reasonably valued.

A strategic, long-term holding. In advanced chips, everything has to flow through TSM. 

A key beneficiary of AI capex and is the world's biggest chipmaker with dominant marketshare. Few can match their tech expertise, and their valuation remains reasonable.

All the Mag 7 capex spending announcements are great for TSM.

The leader. He took some profits. Though there are plants in the US, it's not going to move leading-edge production offshore from Taiwan. Recommends reading Chip War by Chris Miller.

Best of breed. A very good foundry. If you buy it, don't sell it, though you can trim it. Problem is, this has had a huge run. He last bought this a while ago at $15. If you're not bothered from the high PE, you can buy this. Has AI exposure.

In semis, his pick is TSM, which make the chips for the major players. Semis are a cyclical industry, but TSM is completing plants in the US, so revenues should soar in 2025-6.

He owns it but is cautious and might sell one day. They have a massive $65 billion investment in the U.S. which should take effect next year. Investors are concentrating on AI where NVIDIA is the leader. He is cautious on massive capital expenditures since they could reap the benefits now, but what happens if there is slowdown especially since it is in a cyclical sector. He doesn't expect 10 to 20% growth.

One of the best semi stocks, are well-positioned for growth. Likes it, but is overbought now. Buy dips. The street target $230. Support from the 200-day moving average is $160.

It is just going on his watch list since he likes the chart. It did consolidate, then broke out. Could pull back

They directly benefit from Nvidia's momentum. Shares have doubled in the past year, and strong performance will continue. At 23-26x forward PE, this translates into doubled revenues and earnings. Not as impressive as Nvidia, but more sustainable.