Why TSM Might Be The Most Important Company In The World

**SPEAKER_1** (0:00)
Well, let's talk about that. Let's try to catch you off, but all right. So let's get into topics. TSM, TSM, we haven't talked about TSM in a while. So TSM is having a good year.
It's 52 week low, it's $184, 52 week high is $420, hovering above $400 right now. So TSM has not been talked about as much as Micron or Sandisk. So TSM, is TSM on the verge of something historic?

**SPEAKER_2** (0:35)
I think TSM, I mean, I felt like TSM, we talked about it so much that it was like, we had to find some new companies to talk about because it's always-
Right? It's been the company, it's been my number one company, that Amazon, I think since the start of the show, just because we know the role that it plays. I think what we're seeing right now over the past week or so, it's kind of like it hit this 400 mark and it almost felt like it might have been its resistance. But what's happening is that they have so much demand, that they're trying to build the fabs fast enough so they can meet it.
So that becomes a slight issue, so much so that they've had to sign on other companies to help them with some of the manufacturing. I know we're trying to get the fabs here in Arizona up and running. They're trying to build out even more so inside of Taiwan. The geopolitical threat is still there. TSM is at the core of it, so much so last week that there was a report that they said that we talked about how the cognitive AI works. ASML makes the machines, TSM buys the machines and manufactures for the rest of the world. They said, look, we're trying to make the next machine ourselves. What ASML does is great and they still have customers. It's not the fault of ASML by any means. They'll still have their customers. But they're saying, look, we might even need to be even more dependent on what we can make. And so they're looking at the long term, five to ten years, hey, we build the next EUV machine for ourselves, that way we don't have to spend 400 million per machine to meet demand and we can produce at the highest level.
They're not going anywhere. In fact, if that story changes, then I will come on Market Monday's and it will be a very different tone. But as long as TSM has said that demand is still at the highest levels, the backlog is the issue why it hasn't gone. We've said this on here a bunch of times. We wouldn't be surprised if it was a $300 stop. And here we are at $400.
That's a company that doesn't go anywhere. Yes, we're very aware of the geopolitical threat, obviously, with China and Taiwan. But it's vital to the AI story. It has to succeed in order for the space to succeed.

**SPEAKER_1** (2:40)
Okay.

**SPEAKER_3** (2:42)
Really quick to piggyback off that.
Can we stop saying, in general, that companies that have gained 130% return have not performed how they should? Like, I know some of you are excited, and this may be your first year investing. This is not normal and it's not gonna continue. Here's what's happening.

**SPEAKER_2** (3:04)
Let that breathe for a second.

**SPEAKER_3** (3:05)
They're giving you three years worth of gains in one year. So when the economy goes to shit, they can say, we gave you the ETF, we gave you TSM, we gave you Micron. If you haven't figured out a way to be okay and financially viable after this run up, even in private equity, and I'm seeing how many people that were employees of OpenAI elect to cash out now opposed to waiting the IPO, I think is very telling. So even if you're getting 200 percent gains, this year, factor in if the market drops, and we have a rough year in 27, you're going to have to take care of yourself for the next two years off of this year's gains. That's why Rashad was like, hey, I'm conservative. We've seen the story before. There's been a bunch of high-flying stocks that have went up three, 400 percent, and the option as a result has went up 700 percent in the early 2000s, and what happened? A year later, 2021 had a hell of a run up. 2022 came. I'm like, they changed the definition of the recession, but the entire market still fell.
You need a financial umbrella. It's great, and that's why I posted yesterday and today. No luxury spending for the next two years unless you hit your freedom numbers. What about?