TSMC Stock Price: How Low Should You Wait? Experts Reveal the 'Sweet Spot' – Add More If It Drops Below This Level

Taiwan's stock market has recently experienced significant volatility and pullbacks, with many investors closely watching whether TSMC, known as the 'pillar of national defense,' will hit a 'sweet spot' price. They're also questioning whether the bullish trend can continue amid the AI wave.

Financial expert Ashun Gu, known as 'Stock Person Ah Xun,' posted on Facebook, pointing out a common trap many investors fall into: 'When the price was 2,000, they waited for 1,900; when it reached 1,900, they started waiting for 1,800.' He emphasized that if investors believe TSMC could reach 3,000 or even 4,000 in the future, then the current price is already a 'sweet spot.'

Ashun Gu stated that investing isn't about guessing the lowest point. What truly matters is whether you're willing to start building a position when a company's intrinsic value clearly exceeds its stock price. Therefore, if he believes TSMC is undervalued now, he would buy a portion immediately. If the price drops to 1,800 later, he'd happily add more. And if it doesn't drop, at least he's already on board. For long-term investing, returns are often determined not by whether you bought at 1,800 or 1,900, but by whether you've positioned time on your side during the company's value growth.

Is it still a good time to enter TSMC now?

Chang Hsi, visiting professor at Tunghai University's Department of Finance and former chairman of Cathay Financial Trust, stated on the program 'Money Deployment' that TSMC's current 'sweet spot' price is around 2,200 NT$ when calculated at a 22x P/E ratio. He also noted that as advanced packaging gains importance, leading firms like ASE (Advanced Semiconductor Engineering) are worth watching.

Chang Hsi said TSMC has solid fundamentals and clear profit momentum, with earnings expected to rise year after year. At the current P/E of about 22x, the stock is reasonably priced and represents a fair 'sweet spot.' He explained that good companies' earnings grow over time, and market valuations gradually catch up: 'What seems expensive this year might look like a sweet spot next year.'

Chang Hsi predicted that by the end of this year, TSMC's sweet spot price will rise to 2,500 NT$. Next year, as earnings surge further and pricing power kicks in, 2,700 to 2,800 NT$ will still be a safe entry point. He advised investors to adopt a 'buy-the-dips in batches' strategy.

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