Semiconductors

Executive Summary Investment Thesis: TSMC is the world’s dominant pure-play semiconductor foundry with an impregnable moat in leading-edge chip manufacturing, benefiting from AI/HPC secular tailwinds. However, valuation offers minimal margin of safety at current prices despite exceptional business quality. Business Classification: Stalwart (large, established company with 10-15% growth potential) Current Valuation Assessment: Current Price: $295.68 Estimated Intrinsic Value: $210 - $255 Margin of Safety: -16% to -39% (NEGATIVE) Recommendation: HOLD / WAIT FOR PULLBACK Recommended Entry Zones: ...

Executive Summary Investment Thesis: Micron is a leading memory chip manufacturer riding the AI wave but trading at peak valuations with extreme cyclicality risk. While fundamentally recovering strongly from 2023’s downturn, the stock has run ahead of intrinsic value with minimal margin of safety. Business Classification: Cyclical (highly sensitive to semiconductor industry cycles) Current Valuation Assessment: Current Price: $223.77 Estimated Intrinsic Value: $140 - $170 Margin of Safety: -32% to -24% (OVERVALUED) Recommendation: AVOID at current levels Recommended Entry Zones: ...

Executive Summary Investment Thesis: TXN represents a fortress-quality semiconductor business trading at a cyclical trough. The company’s dominant position in analog chips, combined with massive 300mm fab investments creating unassailable cost advantages, offers a compelling 3-5 year compounding opportunity with 26-30% margin of safety. Business Classification: Stalwart (Large-cap with 10-12% growth potential) Current Valuation Assessment: Current Price: $162.57 Estimated Intrinsic Value: $200-235 Margin of Safety: 23-31% Recommendation: BUY Recommended Entry Zones: ...