Although the market is in a downturn right now, I've still got my eyes on the horizon. Depending on the effects of tariffs, we could be in for some more stock market pain over the next few months, but if that timeline is stretched out to three or five years, today's stock prices start to make a lot more sense.One chip stock that I'm excited about is Taiwan Semiconductor Manufacturing Company (TSM 11.95%) -- or TSMC. I think it could easily become a trillion-dollar company in a relatively short time frame. I ...

Taiwan Semiconductor Manufacturing Company (TSMC) may have to pay a fine of $1 billion or more to resolve a U.S. export control investigation related to a chip it made that was used in a Huawei AI processor, according to a report by Reuters.TSMC did not provide any further comments as it is now “in [a] quiet period,” a spokesperson for the chipmaker said in an emailed statement to TechCrunch. It’s the latest development in a situation that first came to light in late 2024 involving TSMC, Huawei, and Xiamen ...

This market strength has unfortunately not stopped TSMC stock from falling. Geopolitical tensions with neighboring China are on the rise, and some investors fear for the future of the company should China invade the island. Also, investors fear the effect of tariffs on the company despite the Trump administration exempting semiconductors. Nonetheless, TSMC seems to only extend its dominance, which makes its stock attractive with its lower price. TSMC's foundry market share grew more than 2 percentage points ...

Taiwan Semiconductor Manufacturing Company Limited (TSM) , which is also known as TSMC, has taken a sharp hit, sliding 26% year to date. This drop significantly underperforms the broader Zacks Computer and Technology sector, which fell 20.8% during the same period.Image Source: Zacks Investment ResearchThis steep decline raises the question: Should investors cut their losses and exit, or is it worth holding onto? While the near-term headwinds are real, the long-term growth story for Taiwan Semiconductor rem ...

Taiwan Semiconductor Manufacturing (TSM -0.90%) stock is losing ground again in Tuesday's trading. The chip foundry leader's share price was down 0.4% as of 2 p.m. ET amid the backdrop of a 0.1% gain for both the S&P 500 and the Nasdaq Composite. Notably, the stock had been up as much as 4.3% earlier in the session.TSMC initially rose today thanks to investor hopes for relief on tariffs, but broader-market sentiment turned negative again as the day progressed and has dragged its share price lower. The stock ...

President Trump has announced the latest round of trade tariffs, targeting a wide range of goods from most of the United States’ trading partners, with a particular impact on the retail sector. However, to many investors’ surprise, the recent press conference outlining the specifics notably excluded one major industry: semiconductors. Taiwan Semiconductor Manufacturing TodayTSMTaiwan Semiconductor Manufacturing$146.88 -10.50 (-6.67%) 52-Week Range$125.78▼$226.40Dividend Yield1.47%P/E Ratio20.86Price Target ...

Core Viewpoint - TSMC is experiencing a challenging 2025 despite a strong start, with shares down over one-third from their 52-week high due to negative sentiment in tech stocks and tariff impacts [1][2][3] Group 1: Financial Performance - TSMC's revenue in the first two months of 2025 increased by 39% year-over-year, indicating potential to exceed Q1 2025 revenue guidance of $25.4 billion, which represents a 34% increase from the previous year [5][6] - Analysts expect a 49% increase in Q1 earnings to $2.05 per share, driven by a projected 5.5 percentage point rise in operating margin [7] - TSMC's stock is currently trading at under 25 times trailing earnings and less than 19 times forward earnings, making it more attractive compared to the Nasdaq-100 index's price-to-earnings ratio of around 29 [13] Group 2: Market Demand and Growth Drivers - The surge in TSMC's sales is largely attributed to the growing demand for AI chips across various applications, including data centers, smartphones, PCs, and automotive [8] - TSMC is focused on increasing its AI chip production capacity to meet the high demand from Nvidia, which has captured over 70% of TSMC's advanced chip packaging capacity [9] - Other AI chip companies, such as Broadcom and Marvell Technology, are also experiencing significant growth, benefiting from the demand for custom AI processors that TSMC manufactures [11] Group 3: Future Outlook - TSMC is well-positioned to capitalize on the secular growth of the chip market driven by AI, with a forecasted compound annual growth rate (CAGR) of 20% in revenue over the next five years [12][15] - Analysts are projecting a 29% increase in TSMC's earnings for 2025, with expectations for further growth in the following years [14]

Group 1 - The article emphasizes that while many investors focus on well-known companies like Amazon, Meta, and Nvidia for AI exposure, the true drivers of the AI revolution may be overlooked [1] - Pythia Research specializes in identifying multi-bagger stocks, particularly in the technology sector, using a combination of financial analysis, behavioral finance, psychology, social sciences, and alternative metrics [1] - The firm's strategy aims to uncover breakout opportunities before they become mainstream, leveraging both traditional and unconventional insights to navigate market sentiment and identify emerging trends [1] Group 2 - The approach of Pythia Research is designed to invest in transformative businesses that are positioned for exponential growth, rather than merely following market trends [1]

Company Performance - TSMC closed at $166, with a +0.45% change from the previous day, underperforming the S&P 500 which gained 0.55% [1] - Over the past month, TSMC shares have decreased by 8.46%, while the Computer and Technology sector and the S&P 500 fell by 8.88% and 6.22%, respectively [1] Upcoming Earnings - TSMC is expected to report an EPS of $2.02, reflecting a 46.38% increase from the same quarter last year, with anticipated revenue of $25.2 billion, a 33.55% rise year-over-year [2] Fiscal Year Projections - For the fiscal year, earnings are projected at $9.15 per share and revenue at $113.51 billion, indicating increases of 29.97% and 26% from the previous year [3] Analyst Estimates - Recent changes in analyst estimates for TSMC suggest a positive outlook on the company's business performance and profit potential [3][4] Zacks Rank - TSMC currently holds a Zacks Rank of 3 (Hold), with a consensus EPS projection that has decreased by 0.48% in the last 30 days [5] Valuation Metrics - TSMC has a Forward P/E ratio of 18.06, which is in line with the industry average [6] - The company has a PEG ratio of 0.57, matching the average PEG ratio of the Semiconductor - Circuit Foundry industry [7] Industry Context - The Semiconductor - Circuit Foundry industry is ranked 77 in the Zacks Industry Rank, placing it in the top 31% of over 250 industries [8]

Core Insights - Taiwan Semiconductor Manufacturing Company Limited (TSMC) has underperformed the market with a return of negative 18% since the last coverage, highlighting its critical role in AI chip manufacturing [1] Company Analysis - TSMC is essential for AI, manufacturing chips that power various applications, indicating its strategic importance in the technology sector [1] - The company demonstrates a proven track record in scaling businesses, smart capital allocation, and insider ownership, which are key indicators of effective management [1] - TSMC maintains consistent revenue growth and provides credible guidance, reflecting its operational stability [1] Market Positioning - TSMC possesses a strong technology moat and first-mover advantage, which are crucial for maintaining competitive positioning in the semiconductor industry [1] - The company benefits from network effects that drive exponential growth, particularly in high-growth industries [1] Financial Health - TSMC shows sustainable revenue growth with efficient cash flow, indicating robust financial health [1] - The company has a strong balance sheet and a long-term survival runway, which are essential for navigating market challenges [1] - TSMC avoids excessive dilution and financial weakness, further strengthening its financial position [1] Investment Methodology - The investment approach focuses on identifying high-conviction opportunities with a strong margin of safety to protect against capital impairment while maximizing long-term compounding [1] - Portfolio construction includes core positions (50-70%) in high-confidence, stable plays, growth bets (20-40%) in high-risk, high-reward opportunities, and speculative positions (5-10%) in moonshot disruptors [1]