iA Global Asset Management portfolio manager Dan Rohinton says Taiwan Semiconductor (Taiwan Semiconductor Stock Quote, Chart, News, Analysts, Financials NYSE:TSM) remains his “anchor” technology holding for the AI cycle, arguing the chipmaker offers durable growth at a compelling valuation.
Speaking on BNN Bloomberg’s Market Call on Nov. 3, Rohinton positioned TSM as the most reliable way to participate in the artificial intelligence build-out.
“The company that enables all of this to happen is Taiwan Semiconductor,” he said, adding that TSM effectively holds a monopoly on leading-edge semiconductor fabrication.
Rather than taking concentrated risks on chip designers or upstream suppliers, Rohinton said TSMC provides broad AI exposure because it manufactures the advanced chips that power the sector.
“The reason Nvidia’s margins are so high is because they say, ‘here’s a design, Taiwan Semi, go do all the hard work for me.’” He noted that TSM recently signalled it will raise prices by 5%–7% annually for several years, reflecting its technology leadership and pricing power.
Rohinton also highlighted valuation as a key part of his investment case. “Seventeen times earnings… it’s basically half the valuation of Nvidia,” he said, calling the discount “too low” given the growth outlook.
By contrast, he argued Intel requires investors to make a “technology bet” on whether its turnaround will work, while TSM already delivers the returns and market position investors are seeking.
“We like Taiwan Semi as our anchor position in technology because it deserves to be,” he said.
TSM shares have gained 59.41% over the past 12 months and 211.6% over five years. Of the analysts covering the stock, 29 rate it ‘Buy,’ two ‘Hold’ and none ‘Sell,’ with a consensus price target of US$354.09.
The shares closed Nov. 4 at US $294.18.
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