These geopolitical pressures have sent the company’s stock tumbling almost 40% from its summer highs. Last month, ASML shocked the market with tepid guidance. Chinese customers had been aggressively ordering machines ahead of any potential restrictions. ASML’s guidance signaled that the surge of orders was cooling.

The semiconductor industry is cyclical, and ASML’s business seems to be in a softer phase. But that doesn’t change the fact that it has a monopoly on EUV machines, and long-term innovation in the chip space will likely fuel healthy demand for those machines. Analysts estimate ASML’s earnings will grow by 16% to 17% annually over the next three to five years. That growth rate would make ASML a solid deal at its current valuation of 32 times earnings.

Taiwan Semiconductor (NYSE: TSM) is in a similar situation. The company is the world’s leading chip foundry (manufacturer), accounting for approximately 62% of the world’s third-party semiconductor production. It’s a mission-critical operator in the world’s technology landscape. However, it’s a Taiwanese company. China has long claimed the independently governed island as a province of the mainland, and stated its intentions to bring it under Beijing’s control — by force if necessary.

It’s unclear whether the situation will escalate into an armed conflict, though Taiwan’s economy, including Taiwan Semiconductor, makes it a strategic asset China would love to have. The United States has historically aided Taiwan with trade, and has been working with Taiwan Semiconductor to begin diversifying its manufacturing footprint into locations outside of Taiwan. The company is investing more than $65 billion to build factories in Arizona.

Investors shouldn’t ignore the risk that China’s aggressiveness toward Taiwan could escalate, but at some point, the value proposition of this stock becomes hard to ignore.

Taiwan Semiconductor trades at a forward P/E of 27 today. That may seem high, but analysts expect Taiwan Semiconductor to grow earnings by an annual average of 31% over the next three to five years. Remember, Taiwan Semiconductor manufactures most of the high-end chips that are powering AI applications, including those designed by Nvidia. Taiwan Semiconductor’s jaw-droppingly low valuation relative to its estimated growth makes the stock worth considering, even with the geopolitical risks.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Alphabet, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

3 Top Tech Stocks to Buy Right Now was originally published by The Motley Fool