MARKET CRASH 📉 Chip Stocks To Buy NOW (TSMC INTC AMD NVDA) 2021 Analysis

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0:00 - Introduction
2:38 - TSMC
4:49 - Intel
8:03 - AMD
10:10 - Nvidia
13:06 - Conclusion

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We're experiencing a pullback in many (growth) stocks – which you're probably aware of. Although it's still not clear which direction we'll go next, I do think we have good buying opportunities right now (regardless). That's why I've been selectively buying some companies with strongest fundamentals, who have been hit the hardest. I'm confident they will outperform whenever we're out of the woods.

In terms of fair value, TSMC has a DCF of ~$130. At the time of writing, the stock is trading for $110 a share. So, there is a 15% upside or margin of safety from FV... not too bad. If we anticipate a CAGR of 18% until 2024, they'll get to US$93bn in revenues (ignoring FX). At a 35% net income margin, that's approximately $6.30 EPS. Historically they've trading at 18x P/E, which would mean a price per share of $113.00. I'd assign a 65/35 split between the FV and 2024 est. price, to get a price target of $125/share – a 14% upside from here. So, I wouldn't necessary call TSMC "expensive". I would say its fairly valued, but we'll probably experience valuation compression in the years ahead, making it a subpar investment. The stock has pretty much moved sideways this year, so we could definitely swing trade it from here... but I'm not necessarily attracted to a long-term play from here (but maybe if we see more of a pullback).

Overall, Intel has a compelling turnaround story. I, personally, don't like to buy into turnaround stories because there's a lot of execution risk involved; but, with the case of Intel I think that's priced in already. Yes, there quite behind the curve, but at an 11x P/E ratio, you're getting quite the discount.

After performing an analysis on revenues by segment for AMD, I expect AMD's 2024 revenues and EPS to be $26.5bn and $4.37, respectively. Based on a DCF, I get a fair value of $80 per share – which excludes any upside from the Xilinx acquisition. My scenario is very conservative, and might even be bearish... only because there is a lot of uncertainty and cyclicality with this industry, so I have to be that way. Compressing other valuation ratios, I get a price target of $100 – which is where we are right now. In other words, AMD, although a great growth stock, is quite expensive and risky to buy here... but the upside to taking this risk can be huge, which you can see if we perform a sensitivity analysis for a bulllish scenario. I would buy here, and I would definitely add in more pullback to the $74 level – where there is strong support. I would watch upcoming earnings very carefully.

Based on my forecasts, I believe Nvidia will cross $40bn of sales in 2024 with a $5 EPS. There' no doubt that Nvidia's growth rate will slow in the coming years, which will result in a compression of their valuation. Considering all that, I get a fair value and price target of $175 per share — a 17% downside from where we are today. Does that mean Nvidia's stock will crash? No, but it is definitely risky and prices in a lot of growth which I can't fully buy into right now unfortunately.

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Видео MARKET CRASH 📉 Chip Stocks To Buy NOW (TSMC INTC AMD NVDA) 2021 Analysis канала Bill H, CPA