EPISODE · May 16, 2026 · 5 MIN
Taiwan Semi: TSM - The Durable Compounder
from LOGO Quicktakes · host Eric Clark, LOGO Investor
Our work indicates, TSMC, at current valuations is one of the highest-quality businesses in the world still trading at a discount to its intrinsic value, primarily because investors demand a geopolitical discount for Taiwan risk. Meanwhile, looking backward, TSM stock has annualized at 31% for the last 5 years so the stock hasn't cared about the geopolitical risk other than in short periods of heightened geopolitical risk. That discount creates the opportunity. As Arizona production scales, as Japan and Europe fabs come online, and as TSMC's manufacturing geography diversifies over the next five years, that discount will compress. Meanwhile, revenue & earnings should grow at 20%+ annually over the next 3 years at a minimum as AI chip demand compounds. TSMC’s management has been executing with remarkable consistency and capital discipline. In an inflationary world where physical things — factories, equipment, infrastructure — cost more to build, TSMC's already-built, impossible-to-replicate manufacturing base becomes more valuable, not less. Owning TSMC is owning the cornerstone of the AI economy — the single company without which none of the rest of the story can be told.Important InformationInvestors should carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. This and other information can be found in the Fund’s statutory and summary prospectuses, which may be obtained at LogoETF.com. Read the prospectus carefully before investing.
What this episode covers
Our work indicates, TSMC, at current valuations is one of the highest-quality businesses in the world still trading at a discount to its intrinsic value, primarily because investors demand a geopolitical discount for Taiwan risk. Meanwhile, looking backward, TSM stock has annualized at 31% for the last 5 years so the stock hasn't cared about the geopolitical risk other than in short periods of heightened geopolitical risk. That discount creates the opportunity. As Arizona production scales, as Japan and Europe fabs come online, and as TSMC's manufacturing geography diversifies over the next five years, that discount will compress. Meanwhile, revenue & earnings should grow at 20%+ annually over the next 3 years at a minimum as AI chip demand compounds. TSMC’s management has been executing with remarkable consistency and capital discipline. In an inflationary world where physical things — factories, equipment, infrastructure — cost more to build, TSMC's already-built, impossible-to-replicate manufacturing base becomes more valuable, not less. Owning TSMC is owning the cornerstone of the AI economy — the single company without which none of the rest of the story can be told.Important InformationInvestors should carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. This and other information can be found in the Fund’s statutory and summary prospectuses, which may be obtained at LogoETF.com. Read the prospectus carefully before investing.
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Taiwan Semi: TSM - The Durable Compounder
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