Why Redditors Favor TSMC Over Nvidia, Super Micro Computer, ASML, And Intel

A recent post on the Reddit handle r/wallstreetbets ignited a discussion about Taiwan Semiconductor Manufacturing Company TSM. Redditors discussed TSMC’s unique position in the semiconductor industry. Users of Reddit also weighed in on why TSMC might be a solid investment. Key catalysts included its strategic importance, global expansion, and unparalleled yields.

Why TSM Over Others?

The post made a case for TSMC over other semiconductor giants like Nvidia Corp NVDA, Super Micro Computer Inc SMCI, ASML Holdings ASML, and Intel Corp INTC.

Related: Best Long-Term Semiconductor Stocks According To Redditors: Favorites Beyond Nvidia

Key factors included:

• TSMC’s robust yields
• Western-friendly approach with global fabs
• Belief that it is less susceptible to geopolitical tensions, especially involving China

Redditor Responses

• User Cid-Itad supported the idea of buying TSM shares for the long term. Emphasizing that semiconductors are here to stay, the user said that TSMC is the dominant chipmaker with majority ownership held by U.S./EU investors.
• User CptKoons countered the notion of TSMC being solely a Western company. He highlighted its crucial role in Taiwan’s national defense strategy. Geopolitical concerns and potential government entanglements were cited as factors to consider.
• User waymorerocks provided detailed insights into TSMC’s positive outlook, including high demand, strong earnings guidance, and global expansion plans. The user also highlighted TSMC as a critical player in AI and downplayed concerns about China’s influence.
• User dduckg0 mentioned Cathie Wood‘s significant investment in TSMC. He suggested that buying TSM shares is a wise move.

Related: Cathie Wood’s Ark Invest Keeps Unloading ‘Overvalued’ Nvidia, But It Just Added $4M Worth Of Stock In AI Chipmaker’s Supplier

The Reddit discussion paints TSMC as more than just a semiconductor giant, it’s seen as a critical player with strategic importance, solid financials, and a global footprint.

Redditors express confidence in TSMC’s potential for growth, emphasizing its role in shaping the semiconductor industry’s future.

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