Renowned investor Duan Yongping, known for his strategic investments, has recently set his sights on another semiconductor giant, Taiwan Semiconductor Manufacturing Company (TSM, Financial). After successfully trading Nvidia options, Duan revealed on social media his plan to enter the TSM market by selling put options. He intends to sell 100 contracts of TSM's January 16, 2026, $175 strike price put options at a limit price of $23.2, a strategy indicating a bullish outlook on AI hardware.
Duan's confidence in TSM (ticker: TSM) is based on several factors. He praises the company's robust business model and corporate culture, highlighting its focus on semiconductor foundries. He recalls a prediction he made 30 years ago, stating that TSMC would surpass competitors like UMC and Samsung due to its dedicated approach. Additionally, Duan appreciates TSMC as a strong business-to-business company, recognizing its market position alongside other giants like Microsoft.
Interestingly, Warren Buffett (Trades, Portfolio) also invested in TSMC through Berkshire Hathaway, acquiring $4.1 billion worth of shares in the third quarter of 2022. The investment made TSMC Berkshire's tenth largest holding. However, Buffett quickly reduced the stake by 86% and exited completely by the first quarter of 2023. During the 2023 Berkshire Hathaway shareholders meeting, Buffett praised TSMC as one of the world's best-managed companies but expressed concerns over its geographical location.
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