$TSM has the best risk/reward profile in the whole AI trade space. The more workloads shift from training to inference, the higher ASICs’ share of AI servers will be. Total inference workload is projected to exceed training by the end of this year, so we’ll see ASIC deployment accelerate from now on. This ramp also coincides with peak hyperscaler capex, so they’ll literally pour money into ASICs to scale their inference businesses. Limiting factor here will be foundry capacity. They’ll all compete for $TSM capacity, giving $TSM enormous pricing power. So, $TSM will see substantial growth in demand volume and be able to charge way higher prices than now. Trading at 19x earnings. Unless hyperscaler capex magically collapses, there is no losing in this trade. Long $TSM
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