Is Taiwan Semiconductor “serially undervalued”?

IA Global Asset Management analyst Dan Rohinton says Taiwan Semiconductor Manufacturing (Taiwan Semiconductor Manufacturing Stock Quote, Chart, News, Analysts, Financials NYSE:TSM) remains a bottleneck for the AI chip supply chain despite geopolitical risk and emerging competition.

Speaking on BNN Bloomberg’s Market Call on July 13, Rohinton said Taiwan Semiconductor is “serially undervalued” because of concerns about Taiwan and potential conflict with China.

The investor said that risk is real, but absent a conflict, Taiwan Semiconductor remains critical to AI chip production.

“TSMC is the bottleneck for the entire AI complex, and they have the most leading-edge technology,” Rohinton said.

He said Nvidia, AMD and other major chip companies rely on Taiwan Semiconductor to produce more advanced chips. While Intel is becoming a stronger competitor and Elon Musk’s Terrafab could eventually disrupt the foundry industry, Rohinton said Taiwan Semiconductor should remain dominant for at least the next two to three years.

“Even though they’re ramping up capacity significantly, it’s still not enough to meet the ferocious demand they’re seeing,” he said.

Asked about Terrafab’s timeline, Rohinton said the opportunity is likely 2030 and beyond, though equipment orders could begin earlier.

The stock was up 84.58% over the previous 12 months and 364.5% over five years. Of the analysts covering the stock, 28 rated it “Buy,” one rated it “Hold” and none rated it “Sell,” with a consensus target of US$486.84.

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