Taiwan Semiconductor MFG. (TSM)

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.

Massive growth of all chipmakers. Remember that semis are cyclical; ASML, for example, went down 20% yesterday. Hot stocks always have potential to re-rate. His preference, but valuation is not attractive right now.

It's moved up, but he still sees upside due to their predictable earnings.

A large holding for him. TSI is cheap among the semis and there could be a deal with they building a semis plant in the Middle East, in partnership with Samsung. Nvidia always needs chips from TSM, another plus.

Undisputed market leader in foundries, market share of 51%. Huge backlog. Chart shows that it's a bit of a trading stock, but then when it breaks out you can build up a position. When trading, doesn't mean that you have to get out, but allows you to trim.

Delivers on execution, but amazing how such a massive company is still innovative. Cornered the market on the 2-nanometer chip. Fantastically managed.

They benefit from Nvidia's capex spending. Nvidia receives orders from the hyperscalers and so orders more from Taiwan Semi, which is safer and much cheaper than NVDA. That's why it's larger position for him than NVDA.

Like the other semis, TSM is now seeing profit-taking. It's best of breed in semis and is well-positioned going forward. Samsung is another choice, which he thinks has better growth.

Expectation that generative AI spending, by way of building out data centres, is going to be very robust through 2030. This is a way to play, 100%. Stock's done well, has pulled back with the others. Well positioned going forward.

Rhetoric going into the election about Taiwan and China, so could be more weakness.

Very expensive to build large, advanced fabs. We're talking $5-10B a pop. Now building fabs in Arizona. It's lead would be very hard to catch.