TSMC stock valuation -the supplier to Nvidia,Apple,Intel, AMD Explaining accounting terms in non-accounting language&Demand based valuation
Background: The semiconductor industry has been in the headlines since the covid-19 thanks to the increasing demand for electronics and gaming during the lockdown, the public and businesses’ zeal for AI (Artificial intelligence). I started to learn about semiconductor stocks by myself in 2018 when I was in college, but like most people today, my biggest challenge is that I know nothing about it, and I just put it off during that time. In 2020, I started to research Taiwan Semiconductor company after I had self-studied some valuation and gained some confidence from gaining 50%-300% in different stocks. The TSMC stock is traded at around $70 USD/Share during that time. But like most people and companies, I asked for advice from one of my mentors, who has worked as a consultant at IBM for over 30 years. I showed my valuation strategy in my previous stocks and brought up TSMC: Because TSMC has over 50% market share in the foundry market (I will explain later), making semiconductors for ...