TSMC Poised for Growth as AI Chip Demand Drives Capacity Utilization
• Companies benefiting from AI like Nvidia have soared, making them expensive - Nvidia trades at 33x sales • Nvidia partner TSMC remains cheaper at just 8.6x sales despite powering Nvidia's AI chips • TSMC guiding for 10% revenue growth in Q1 2024 and 20-25% in full year, driven by advanced chips for AI • Apple, AMD, MediaTek using TSMC 3nm chips; capacity utilization rising to 80% in 2024 • If TSMC hits $100B revenue in 2 years and gets half of Nvidia's valuation, stock could soar over 200%