Strong Buy Call on TSMC Driven by Advanced Chip Packaging and Market Dominance
"This is why I always invest in TSMC over every other chip maker. This is why it's so important to understand the science behind the stocks. And since they already make the most important chips for every AI company from Nvidia to AMD and from Google to Tesla, TSMC is actually the most important company of the entire AI era, making it a great stock to get rich without getting lucky."
The speaker explicitly recommends TSMC (ticker TSM) over competitors by highlighting its leadership in advanced chip manufacturing and packaging technology. He underscores that TSMC’s role in producing critical chips for major tech companies positions it uniquely to benefit from the AI revolution. His strong conviction is based on TSMC’s high yields, advanced node production, and near-monopoly in advanced packaging, making it a buy call for investors seeking exposure to AI infrastructure.
Sell Cash Secured Put for Taiwan Semiconductor (TSM)
"That brings us to stock number three, which is going to be Taiwan Semi, stock ticker TSM. The company continues to show strong fundamentals and results. As such, we"re going to utilize options again and we"re going to sell a put and see if we can get a dip in the near term over the next month. So, what we"re going to do is sell the November 21st 260 strike, which is going to earn us around $3 in premium, equating to $300 per contract. This would allow me to potentially buy TSM at around $260, which is a win-win for me."
Mark discusses Taiwan Semiconductor (TSM) and outlines a plan to sell a put option with a strike of $260 expiring November 21st. This strategy aims to allow entry at a lower price while collecting premium income, reflecting a bullish stance on TSM.
Company Commentary on Unilever Delayed Demerger
"So, Unilever are pushing back the de merger of their ice cream unit. That's the Magnum Ice Cream Company. It had been on track to complete in mid-November but because of the US government shutdown, the registration statement for admittance on the New York Stock Exchange couldn\'t be declared effective. They said they\'re confident that the split will still happen this year, although timings are very much to be confirmed. This delay extends the long wait for Unilever, which had already been underperforming, as spinning off the unit is a key part of revamping their growth strategy."
The commentary discusses Unilever postponing the demerger of its underperforming Magnum Ice Cream Company due to complications stemming from a US government shutdown. While the company remains confident the split will occur within the year, the delay and uncertainty around timing add caution to the outlook.
Company Commentary on Coca-Cola HBC Share Momentum
"So firstly, the one of the key ones we're watching this morning is Coca-Cola HBC. So this is a London listed company. It's one of the world's largest bottlers for Coca-Cola, the US giant. They have announced this morning they're buying a controlling stake in Coca-Cola Beverages Africa for $2.6 billion US, acquiring a 75% stake with an option to purchase the remaining 25% within 6 years. Although, having said all of that, Coca-Cola HBC shares fell at open, initially dropping over 4% as analysts noted that the cancellation of their share buybacks is seen as a move to focus on expansion over capital returns."
The speaker details Coca-Cola HBC's strategic move to acquire a major stake in Coca-Cola Beverages Africa, highlighting the $2.6 billion deal and the optional additional buy. However, the cancellation of share buybacks has led to an immediate negative market reaction with shares falling over 4% at the open, suggesting potential balance sheet constraints.
TSMC Valuation Misunderstood Due to Geopolitical Bias
"TSMC isn\"t cheap because it\"s weak. It\"s cheap because people don\"t know how to price dominance under political pressure. And the longer that misunderstanding exists, the more upside you get. This isn\"t a momentum stock. This is a control asset. And when investors finally figure that out, they stop treating it like a trade and start treating it like infrastructure."
The speaker argues that TSMC is undervalued not due to any operational weakness but because investors misprice its dominance amid geopolitical fears. They highlight that as the market corrects this misunderstanding, the stock’s upside could be significant, making it more of an infrastructure play than a typical cyclical semiconductor.
Embedded Manufacturing Contract Highlights Dragonfly Drone
"Whats very unique about this particular uh order is that this isnt just about buying drones from Dragonfly. This is actually what we call an embedded manufacturing process. So what the department of war and the army in particular have understood mostly in you know from the lessons in Ukraine which where weve been boots on the ground since 2022 is that a drones usefulness in the Ukraine theater is about 10 days. So what the army has recognized is they cant go through four-year procurement cycles. They need to go through cycles where they2re manufacturing on their bases. They2re doing modifications on their bases. They2re able to do a maintenance on their bases. They2re able to iterate every 10 days. So when you2re selecting a supplier and a partner, you2re not just selecting somebody who has, you know, presumably a superior product, but they also have a superior infrastructure and culture to be able to support and embed their manufacturing, manage supply chains, handle logistics of inventory. So this is a very, very deep partnership that you don2t get selected for because you have a great product."
Cameron Shell explains that the Department of Defense contract won by Dragonfly Drone is not merely about purchasing drones, but about an integrated, embedded manufacturing process. He emphasizes the importance of rapid, on-base production cycles in the Army, highlighting the companys robust infrastructure and long-standing trust built over years. This commentary underscores the operational and strategic advantages driving investor interest.
Bipartisan Support Drives TSMC Expansion in the U.S.
"I think it started really in the first Trump administration, for example, when he and his administration, the Commerce Department, attracted TSMC from Taiwan to build a fab semiconductor facility in Arizona. Then the CHIPs Act under the Biden administration caused them to double down and they're building two fabs."
The discussion highlights TSMC's decision to expand its semiconductor production in Arizona as a signal of bipartisan support for U.S. re-industrialization. With the CHIPs Act accelerating investment, this development underscores potential long-term benefits for TSMC in the competitive global semiconductor market.
Undervalued TSM Amid Geopolitical Headwinds
"TSMC is probably the most undervalued stock in the last 10 years given the current geopolitical challenges, offering a defensive opportunity in the chip space."
The speaker notes that TSMC (TSM) appears to be significantly undervalued, largely due to geopolitical pressures that have depressed its stock price. This commentary implies a potential buying opportunity, as TSMC’s strong market fundamentals and strategic importance in chip manufacturing make a compelling case for long-term investment.
Attractive Valuation and Integration Potential for C-WAN
"I do think like part of what's interesting right now is the fact that the valuation is, in my opinion, quite compelling where it currently is. ... you have a 90 to 98% gross retention business that was sticky ... and then you just put a shittier business on top, that you're now saying you're going to transform. That I think is actually the opportunity."
Shomik Ghosh discusses how Clearwater Analytics (rebranded as C-WAN) is trading at an attractive valuation based on ARR multiples and free cashflow yield. He explains that despite the challenges brought by their acquisition of lower-quality assets, the company has a highly sticky customer base. The integration of these acquisitions into a comprehensive, end-to-end platform could unlock significant risk-adjusted alpha, making it a compelling opportunity from a valuation and growth perspective.
Buy Call on Taiwan Semiconductor (TSM) at Key 248.28 Buy Point
"This one finishing the day up 1.6%. Just flirting with this 248.28 buy point, but there's probably an early entry. Friday clearly was a legitimate entry as it gapped above the 50-day moving average and broke through resistance at 240, forming a flat base with only 10% depth."
Taiwan Semiconductor (TSM) is showing a solid technical setup with a flat base and a breakout above its 50-day moving average. With a 1.6% advance and a buy point at approximately 248.28, traders can look for an early entry, using the tight 10% base as a catalyst for a swing trade.