Warren Buffett’s Berkshire Hathaway has historically avoided tech stocks due to their unpredictable nature, despite holding Apple as its top asset for several years. Recently, Berkshire invested in Taiwan Semiconductor Manufacturing (TSMC), spending $4.1 billion in 2022 before selling out just two quarters later, potentially due to geopolitical risks from China.
Alphabet (NASDAQ: GOOG), known for its dominant market share exceeding 90% in web search, reported a revenue run rate of $200 billion and a 12% revenue increase in Q1, trading at a price-to-earnings ratio of 18.6. TSMC holds over 50% of the contract chip market and saw a 35% revenue increase to $25.5 billion in Q1, with an operating margin of 48.5%. Currently, TSMC trades at a price-to-earnings ratio of 24.
