Group 1: TSMC (Taiwan Semiconductor Manufacturing Company) - TSMC's revenue for Q3 2025 reached NT$989.92 billion, a year-on-year increase of 30.3%, equivalent to USD 33.1 billion, exceeding the company's guidance of USD 32.4 billion and Bloomberg's consensus of USD 31.5 billion[6] - The company's gross margin for Q3 2025 was 59.5%, up 1.7 percentage points year-on-year, with operating profit increasing by 38.8%[6] - TSMC's AI revenue is projected to grow at a CAGR of over 45% over the next five years, driven by the migration of customers to advanced process nodes[7] Group 2: Ningde Times (Contemporary Amperex Technology Co., Limited) - Ningde Times reported Q3 2026 revenue of RMB 104.19 billion, a year-on-year increase of 12.9%, with net profit rising by 41.21%[14] - The company's gross margin for Q3 2026 was maintained at around 28%, up 1.2 percentage points year-on-year, supported by an increase in high-margin energy storage business[15] - Ningde Times aims to expand production capacity significantly, with plans for new facilities in multiple regions, including a projected 100 GWh increase in Shandong by 2026[17]

Group 1 - Tesla's CEO Elon Musk announced that Samsung Electronics will participate in the production of Tesla's self-developed AI chip "AI5," alongside TSMC, correcting previous reports that suggested TSMC would be the sole producer [1][2] - The AI5 chip is expected to enter mass production by the end of 2026, targeting a performance of 25 trillion operations per second (TOPS), while the AI6 chip is planned for release between 2027 and 2028, aiming for a performance of 50 to 60 trillion operations per second [2] - Musk emphasized the goal of ensuring an oversupply of AI5 chips, stating that any excess could be utilized in data centers, and clarified that Tesla's needs differ from Nvidia's broader customer base [3]

Group 1 - Apple is advancing the development of the A20 chip for the iPhone 18 series, which is expected to be the first processor using TSMC's 2nm process, with an estimated unit cost of approximately $280 [1] - The A20 chip will mark a significant upgrade from the previous A series chips, moving from TSMC's 3nm technology to 2nm, promising substantial improvements in performance and energy efficiency [1] - The cost increase associated with the 2nm process is notable, with TSMC indicating that the last 3nm chips have seen a 20% price increase, and the 2nm process will add an additional 50% to that cost [1] Group 2 - Due to high costs, Apple may not equip all iPhone 18 models with the 2nm chip, potentially limiting the A20 chip to higher-end Pro and Pro Max models, while standard versions may use older or specially designed chips [2] - The production and pricing strategy for the A20 chip will be critical for the competitiveness of the iPhone 18 series in the market [2]

Core Viewpoint - The optimism surrounding artificial intelligence (AI) has propelled the S&P 500 and NASDAQ indexes to all-time highs, yet there remain US-listed stocks that present compelling long-term value despite elevated valuations [1] Group 1: TSMC (Taiwan Semiconductor Manufacturing Company) - TSMC is the leading semiconductor foundry, crucial for manufacturing chips for AI-related companies like AMD and NVIDIA [3] - In 2024, TSMC reported revenues of US$90.1 billion and net income of US$35.5 billion, allowing for significant investments in manufacturing capabilities [3] - The company's capital expenditures (CapEx) are projected to rise from nearly US$30 billion in 2024 to US$40 to 42 billion in 2025, representing nearly 34% of its expected 2025 revenue [4][6] - TSMC's 2nm process, set for volume production in 2025, offers the highest transistor density and power efficiency in the industry, positioning it ahead of competitors [5] - The company faces geopolitical pressures to establish facilities in higher-cost regions, which may impact margins [6] Group 2: Alphabet (Google) - Alphabet is both challenged and presented with opportunities by AI, as evidenced by a decline in Google searches on Safari due to users shifting towards AI [8] - The company is actively adopting AI technology, with YouTube launching over 30 AI tools to enhance content creation and video production [9] - Google Cloud sales are expected to grow at an average annual rate of 26% over the next five years, driven by increased AI demand [10] - Alphabet had a net income of over US$100 billion in 2024 and plans to increase CapEx to approximately US$85 billion in 2025 [11] - The company is under significant regulatory scrutiny, facing ongoing antitrust proceedings and potential fines [12] Group 3: Meta Platforms - Meta is leveraging AI tools to enhance user engagement and monetization across its platforms, including Instagram and WhatsApp [13] - The company reported US$165 billion in sales and US$62 billion in net income for 2024, with CapEx for 2025 estimated between US$66 to 72 billion [14] - Meta's AI initiatives include an AI-powered recommendation model that has improved ad conversions on its platforms [15] - Unlike Google, Meta lacks a presence in the public cloud market, limiting its avenues for returns on AI investments [16] Group 4: Investment Outlook - Despite high market valuations, long-term investors can benefit from companies like TSMC, Alphabet, and Meta, which exhibit strong growth potential driven by AI [17] - The combined CapEx for these three companies in 2025 is expected to exceed US$180 billion, which may pressure near-term profitability but positions them for long-term competitive advantages [18]

Key Points Nvidia is still the computing leader. Taiwan Semiconductor is providing the chips powering the AI megatrend. Alphabet is starting to get the respect it deserves in the AI world. 10 stocks we like better than Nvidia › It's odd to say it, but 2026 is right around the corner. It's time for investors to start thinking about what 2026 will bring and position their portfolio appropriately. Although the artificial intelligence (AI) boom has driven the market higher since 2023, I think it will ...

Core Insights - The article highlights the ongoing profitability of the wafer foundry 2.0 era, with TSMC solidifying its leadership position, achieving revenue of approximately $33.1 billion in Q3 2025, exceeding previous guidance [4][8]. Group 1: TSMC Performance - TSMC's Q3 2025 revenue reached around $33.1 billion, driven by strong demand for 3nm and 4/5nm nodes, particularly from AI GPU and high-performance computing clients [8]. - The utilization rate for TSMC's advanced nodes remains extremely tight, with 3nm capacity primarily driven by Apple and sustained demand for 4/5nm chips from NVIDIA, AMD, and other large clients [8]. - TSMC is increasing capacity allocation for high-value N3 and N5 nodes to alleviate long-term supply constraints [8]. Group 2: Market Trends - The utilization rate for 6/7nm nodes has slightly declined, while 12/16nm and 22/28nm nodes have also shown a downturn after a temporary rebound due to Wi-Fi 7 chip migration [9]. - The capacity utilization rate for mature process foundries outside mainland China is expected to drop from over 80% to 75%-80%, reflecting the fading effects of pre-ordering amid tariff uncertainties and seasonal factors [9]. Group 3: Intel and Samsung Developments - Intel's 18A process is crucial for its success, with the company shifting its strategy to a customer commitment-driven model to ensure capacity expansion aligns with actual demand [10][11]. - Samsung's advanced process utilization and wafer shipments increased in Q2 2025, driven by smartphone chip shipments, with future prospects hinging on the market performance of its 2nm chips [12]. Group 4: Advanced Packaging and OSAT - The demand for advanced packaging is rapidly expanding, reshaping the global wafer foundry landscape, with TSMC at the core of this transformation [12][13]. - ASE, a major OSAT player, reported a 9% year-over-year revenue increase in September, with Q3 revenue estimated at around $5 billion, benefiting from TSMC's CoWoS demand [13]. - Advanced packaging innovations are becoming a key competitive differentiator in the wafer foundry 2.0 era, enhancing the strategic value of foundries and OSATs in system-level performance optimization [13][15].

Core Insights - Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) has experienced a significant decline in its Growth score, dropping from 89.4 to 20.17 within a week, indicating a slowdown in its growth momentum [4] - Despite a year-over-year sales growth of 31.4% in September, TSMC reported a month-over-month decline of 1.4% in sales compared to August, contributing to the drop in its Growth score [4][5] - TSMC's stock has increased by 227% over the past five years, largely driven by demand from major clients like NVIDIA and Apple, but this momentum is now beginning to fade [5] Company Performance - TSMC is a key manufacturing partner for NVIDIA, producing a large portion of the chipmaker's high-performance GPUs [3] - The company continues to perform well in terms of Momentum and Quality, but its Growth score has significantly decreased [5][6] - TSMC remains a global mega-cap company that reports its revenues monthly, providing timely insights into its financial performance [4]

Core Insights - Dongfang Hongwan Overseas Fund, managed by Dan Bin, reported a management scale of approximately $1.292 billion in Q3 2025, an increase from $1.127 billion in Q2 2025, with the number of holdings rising from 13 to 17 [1] Holdings Summary - The top ten holdings are primarily in technology, accounting for a total weight of 92.45%, including Nvidia, Google C, 3x Long FANG+ ETN, 3x Long Nasdaq 100 ETF, Meta, Microsoft, Tesla, Apple, Coinbase, and Alibaba [1] - Notable new positions include Alibaba, with a purchase of 221,000 shares, marking its first entry into the top ten holdings, representing 3.06% of the portfolio [2] - New investments in semiconductor companies Broadcom and Astera Labs were made to strengthen the AI supply chain, indicating a shift from core chip leaders to a broader industry chain [5] - A new position in BitMine Immersion Technologies reflects interest in cryptocurrency assets, following the previous quarter's investment in Coinbase [5] Trading Adjustments - Significant reductions were made in Amazon and Netflix, with holdings decreased by 50% and 71.5% respectively, causing both to exit the top ten holdings [5] - Adjustments in leveraged products included a new position in 2x Long GOOGL ETF and the liquidation of 2x Long Nvidia ETF, maintaining a total leverage product allocation of 21% [6] - Dan Bin emphasized that AI is not a short-term trend but a significant technological revolution that could last 10-30 years, guiding the fund's focus on the entire AI industry chain [6]

Core Viewpoint - Tesla's CEO Elon Musk announced that Samsung Electronics is increasingly involved in manufacturing Tesla's chips, indicating Samsung's gradual entry into a market traditionally dominated by TSMC [1] Group 1: AI Chip Manufacturing - During Tesla's Q3 investor call, Musk revealed that Samsung will share the manufacturing responsibilities of Tesla's current generation AI chip, AI5, with TSMC, contradicting his earlier statement that TSMC would be the sole producer [3] - Tesla relies on these AI chips to power its autonomous driving features and its early-stage humanoid robot product line, combining in-house chips with leading AI processors from Nvidia [3] Group 2: Production Strategy - Musk stated that Tesla is striving for "overproduction," allowing any unused chips for cars or robots to be utilized in the company's data centers [4] - In July, Musk mentioned that Tesla would commission Samsung to produce the next-generation AI6 chip, with a significant agreement valued at $16.5 billion (approximately 117.07 billion RMB) signed between the two companies [4] Group 3: Samsung's Position in Semiconductor Industry - Despite being significantly behind TSMC in the semiconductor foundry industry, Samsung is increasing investments in a production facility near Austin, where Tesla's headquarters is located [5]

Tesla Inc. Chief Executive Officer Elon Musk said that Samsung Electronics Co. is taking a bigger role in manufacturing the carmaker’s chips, signaling that the South Korean company is making inroads in a market dominated by Taiwan Semiconductor Manufacturing Co. Musk told investors on a conference call that Samsung will share manufacturing duties for the company’s in-development artificial intelligence chip, the AI5. That’s something he’d previously indicated would be produced by TSMC, the largest provider ...