Technology / Semiconductor / Internet Research

Nicolas Baratte

Nicolas Baratte has been a financial analyst since 2000, covering the Semiconductor sector and Global Technology. Nicolas has worked on the sell-side for JPMorgan, CLSA. On the buy-side for a Tiger fund and Prudential. Nicolas has covered semiconductors, Asian hardware and components, and the Global Tech supply chain. Nicolas lives mostly in Taiwan, sometimes in France and is in New York regularly.

Taiwan Tech Weekly: TSMC 1Q25 Results & The 2nm Frontline; Mediatek Vs. TSMC Valuation; PC 1Q25 Data

Asian Equities: Growth at Reasonable Price After This Dislocation

TWSE Foreign Holding Weekly (Mar 14th): TSMC, Mediatek, Asustek, Hon Hai, Quanta Computer

TSMC Takeover of Intel: An Official Denial

TSMC 2nm Capacity, Wafer Price. UMC Singapore Fab Starting. Both Stocks Trading Just Below Avg PEx

Equity Bottom-Up

Taiwan Semiconductor (TSMC) / Equity Bottom-Up

<ul>
<li>From mid-Feb-25 to yesterday, MTK's stock has declined -18% versus TSM -25%. Similar enough.  But Mediatek is trading at average forward PEx 16.6x whereas TSMC is cheap at 12.8x. </li>
<li>Consensus forecasts more growth for TSM over 2025-27, a strong 2025 with EPS up 33%. Less growth for MTK, a slow 2025 with EPS up 9%. Why MTK more expensive? </li>
<li>Higher growth but lower PEx, how much risk in TSM earnings? Low valuations could reflect a misunderstanding on the impact of US import tariffs. </li>
</ul>


From mid-Feb-25 to yesterday, MTK's stock has declined -18% versus TSM -25%. Similar enough.  But Mediatek is trading at average forward PEx 16.6x whereas TSMC is cheap at 12.8x. 
Consensus forecasts more growth for TSM over 2025-27, a strong 2025 with EPS up 33%. Less growth for MTK, a slow 2025 with EPS up 9%. Why MTK more expensive? 
Higher growth but lower PEx, how much risk in TSM earnings? Low valuations could reflect a misunderstanding on the impact of US import tariffs. 


Is the Valuations Divergence Justified? Mediatek Vs TSMC