BROKERS’ NOTES: Buy TSMC, sell Diageo

Buy: Taiwan Semiconductor Manufacturing Co

This might be construed as a case of chips over cheers, considering our sell recommendation this week. But semiconductor companies are experiencing unparalleled growth, with chips needed for everything from smartphones to autonomous cars. Given advancements in AI and other leading-edge technologies, chip stocks offer significantly brighter prospects than idle vats of liquor. Chips are where the smart money is heading. Taiwan Semiconductor Manufacturing Co (TSMC) stands out as a powerhouse in the semiconductor industry because of its advanced manufacturing capabilities and technological leadership. As the world’s largest dedicated semiconductor foundry, TSMC plays a crucial role in supplying chips for major tech players while remaining at the forefront of innovation in this rapidly developing industry.

Sell: Diageo

Back in the day, workers would gather with colleagues at a pub to tackle the world’s problems, vent about bosses or find a date. Sadly, this popular form of socialising has lost its allure among millennials and Gen Z. Instead of socialising at bars, many adults have reshaped their leisure activities, choosing instead to go to the gym, connect with friends virtually, arrange an online gaming session or stream a movie. The move away from in-person meetups that usually involve drinking and the trend towards healthy living are leading to a decline in alcohol consumption. Diageo is having to re-examine its marketing strategies and product offerings to adapt to these changing trends. Investors might also abstain.