TSMC(US:TSM) BOCOM International·2025-06-12 00:23Industry Rating - The report assigns a "Leading" investment rating to the technology industry, indicating a positive outlook for the sector over the next 12 months [1][38]. Core Insights - The technology sector has shown significant stock price recovery, driven by strong demand for advanced processes and memory chips. The MSCI Information Technology Index increased by 9.6% from May 10 to June 9, outperforming the MSCI Global Index, which rose by 5.5% [3]. - Trade uncertainties have eased, contributing to a rebound in global stock markets. The report highlights that the U.S. tech stocks are performing stronger than the broader market, while Hong Kong tech stocks lag behind [3]. - TSMC reported a 40% year-on-year revenue increase in May, indicating sustained demand for AI chips. The report remains optimistic about the long-term development of global AI infrastructure [3]. - Memory chip prices have continued to rise, with DDR4 prices increasing by 22.2% in April and NAND Flash prices up by 34% compared to the end of last year. The report anticipates that memory prices will maintain an upward trend due to supply-side adjustments and increased demand from downstream customers [3]. Summary by Sections Investment Recommendations - The report suggests that despite ongoing trade-related uncertainties, investors have reached a consensus that the worst-case scenario is unlikely to return. It recommends focusing on areas with high certainty, such as AI technology and domestic semiconductor supply chain developments [3][37]. Market Performance - The report provides a comparative analysis of various indices, showing that the technology sector has outperformed other sectors, with significant gains noted in the semiconductor and software industries [5][8]. Company-Specific Insights - TSMC's revenue for May was reported at NT$320.5 billion, reflecting a 40% year-on-year increase, which is attributed to strong AI chip demand. The company is expected to maintain its technological advantage as it moves towards 2nm production in the second half of 2025 [3][32]. - The report also highlights specific stock recommendations, including "Buy" ratings for companies like NVIDIA and AMD, indicating potential upside in their stock prices [37].