$SMIC (00981.HK)$ i would think the valuation still expensiv...
$SMIC (00981.HK)$ i would think the valuation still expensive for this company. PE at 19 but could not even produce 7nm chips as of yet (the world is currently at 5nm, planning for 3nm). TSMC the leader is trading at 30. I think the valuation needs to be at 15 for it to be suitable for me.
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mesapsa : yeah and I think it will have a bright future
Money-Monkey : The most in-demand chip is not a high-end chip. As long as the company makes money, it is the best return for shareholders. UMC will not just give up developing high-end processes and only make mature processes. Look, UMC hasn't made a lot of money in the past two years
haroit27 OP : Seen from this point of view, it is correct; opinions vary from one perspective to another. But when you invest in a company, its potential for future profit growth is a key factor for me. From the perspective of a mere producer right now, PE 19 is too expensive. Although it is difficult to directly compare them because they are in different categories, Intel is only 11.