Flea stocks slide and a critical actor seems too cheap to ignore.
Chipsets called graphic processing units (GPU) may be the most important EA development equipment at the moment. Over the past two years, investing in semiconductor actions has generally been an excellent idea – because you are almost assured of a form of exposure to GPUs or data centers.
However, 2025 did not succeed in the best start for flea stocks.
If it was the drama caused by the Chinese start-up In depthThe new prices of US President Donald Trump, or the high expectations of investors, many names in the chip have not resisted this year. From a macro point of view, the ETF Vaneck Semiconductor has dropped 4% so far in 2025 (March 3). Regarding specific companies, take Nvidia And Advanced micro-apparentsWho have seen their shares decrease by 7% and 17%, respectively, so far this year.
While many investors do not seem to look away from Nvidia or AMD, there is another stock that has been taken in a wider sale in the landscape of semiconductors – and I think it’s worth Buy the dip right away.
Let’s explore why now looks like a lucrative opportunity to buy Manufacture of Taiwan semiconductors (TSM 0.71%)) The hand fist of the stock.
Do not underestimate the influence of semi Taiwan in the Kingdom of Flea
Regarding the brand’s recognition on the flea market, investors do not need to look much further than Nvidia and AMD. These two behemoths lead the charge in the GPU revolution. In the meantime, Broadcom plays a full role in the equipment of data centers with advanced chipware, while Micron technologyThe storage solutions for large bandwidth memory are increasingly important because the workloads of AI data become larger and more complex.
With so many other names that dominate titles and discussion points, I would not be surprised if you are not even aware of semi or TSMC Taiwan. The fact is that many leaders in flea space – including NVIDIA, AMD and Broadcom – should credit Taiwan Semi for a large part of their success.
TSMC specializes in foundry solutions, which is essentially a sophisticated term which means that it actually manufactures integrated chips and systems for semiconductor companies. In other words, without TSMC, Nvidia’s chip architecture would be more an idea than a tangible product.
Given the demand for GPUs in the past two years, it should not surprise that the income and profits of Taiwan Semi on the ground. That said, I think business growth is just starting to get started.
Many companies “magnificent seven”, such as Microsoft,, Amazon,, AlphabetAnd Meta-platformsExplore personalized silicon as a strategy to migrate excessive overcoming on Nvidia chipware. These major technology giants, as well as the cat manufacturer OPENAIwould have collaborated with TSMC to help bring their visions to life.
TSM income estimates for the current financial year data by Ycharts.
Although TSMC has already acquired almost two thirds of the foundry market The opportunity, I think that the advent of a more personalized silicon – in addition to the new architectures of Nvidia and AMD over the next two years – will further strengthen the company leadership position and lead to an extended income and acceleration of profits.
Image source: Getty Images.
TSMC shares are at the cost of perfection
Despite the solid position of the TSMC market and robust financial perspectives, the actions of the chip are shocking.
TSM PE ratio (forward) data by Ycharts.
Right now, the average Price in the future (P / e) multiple for the S&P 500 is around 21. As illustrated by the above graph, the P / E front of Taiwan Semi is about 19 years old. For me, this disparity suggests that investors can see an investment in the S&P 500 as less risky than TSMC – and which also has more perspective.
In my eyes, the two main risks revolving around an investment in TSMC are as follows:
- The semiconductor industry is cyclical.
- Geopolitical tensions between China and Taiwan.
Although I can understand these points in an academic sense, I think that all the fears around these subjects are exaggerated. The demand for fleas should not slow down as soon as the market should increase ten times in the next decade and reach a size of almost 1 dollars billion.
In addition to that, TSMC operations are not exclusive to Taiwan. In fact, the company has just announced in early March that it will invest an additional $ 100 billion to extend its manufacturing footprint in the United States, this seems to be a given logical decision Spend more than $ 300 billion in AI infrastructure in 2025 only.
I think the TSMC stock is a good deal right now. Long -term investors can consider buying this hand, before the company’s manufacturing operation is even more extensive as the AI revolution continues to advance the steam.
John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the board of directors of Motley Fool’s. Randi Zuckerberg, former Director of Development of the Facebook and Sister of the CEO of Meta Platforms, Mark Zuckerberg, is a member of the board of directors of Motley Fool’s. Suzanne Frey, director of Alphabet, is a member of the board of directors of Motley Fool’s. Adam Spatacco At positions in Alphabet, Amazon, Meta Platforms, Microsoft and Nvidia. The Motley Fool has positions and recommends micro advanced devices, alphabet, Amazon, Meta Platforms, Microsoft, Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends the following options: Long January 2026 395 $ calls Microsoft and short January 2026 405 $ calls Microsoft. The Word’s madman has a Disclosure policy.