Taiwan Semi's $100 Billion Investment: Fate of the Chipmakers

Core Viewpoint - The current trend shows a significant increase in investment from major technology companies in the United States, contrary to economists' expectations regarding tariffs [1][2]. Group 1: Investment Trends - Companies like Apple Inc. and Oracle Co. are investing billions in the U.S. economy and manufacturing [2]. - Taiwan Semiconductor Manufacturing (TSM) has announced an investment of up to $100 billion in the U.S., in addition to its previous $65 billion commitment, highlighting its dominance in the semiconductor supply chain [2]. Group 2: Stock Performance and Forecast - TSM's stock has traded down to 80% of its 52-week high, raising questions about potential buying opportunities [3]. - Analysts forecast a 12-month price target for TSM at $220.00, indicating a 21.52% upside, with a high forecast of $255.00 [4]. - Institutional capital investment in TSM has increased by $9.8 billion over the past quarter, while short interest has declined by 9% [5][6]. Group 3: Industry Impact - The positive investment news from TSM is expected to influence the broader chip industry, including companies like NVIDIA [7]. - NVIDIA's stock has seen a recovery after hitting lows, with a 12-month price forecast of $171.69, suggesting a 49.62% upside [10]. - Intel's stock, currently at 45% of its 52-week high, is projected to have a 30.74% upside, with potential earnings per share forecasted to improve significantly [12][14].