Why this investor likes Taiwan Semiconductor right now

iA Global Asset Management portfolio manager Dan Rohinton told BNN Bloomberg’s Market Call on April 21 that Taiwan Semiconductor  (Taiwan Semiconductor Stock Quote, Chart, News, Analysts, Financials NYSE:TSM) remains the clearest way for investors to gain exposure to advanced chip production, arguing the company has little real competition at the leading edge.

Rohinton said competitors exist in so-called lagging-edge semiconductors, but not where the most advanced manufacturing is taking place.

“Allegedly, yes. But in practice, no,” he said. “When you want a more consistent ride in the journey, which is just the toll road on AI and technology, getting more miniature, more sophisticated, more demands of it, Taiwan Semi is really, I think, the best toll road in this conversation.”

The investor said Taiwan Semiconductor is the leader in advanced-node manufacturing at three nanometres, two nanometres and below, describing the company as effectively holding a monopoly position in that part of the market. Rohinton added that some investor interest in Intel reflects underused fabrication capacity elsewhere in the industry, but said Taiwan Semiconductor remains the stronger way to play rising AI and semiconductor demand.

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