The semiconductor giant is well positioned for continued dominance in the AI chip space. TSMC's AI chip dominance has begun reflecting in its financials, too. In the second quarter, TSMC reported a record $30 billion in revenue (up 44% year over year), with high-power computing (which includes AI chips) accounting for 60% of it. There's no doubt that AI adoption is rapidly growing. With TSMC's chips being the foundation that will make this adoption possible, the company is well positioned to continue its im ...

The last time I covered Taiwan Semiconductor Manufacturing Company (NYSE: TSM ) ( OTC:TSMWF ) was on the 9th of May, or about 2 and half months ago. I argued that the company's growth narrative isI specialize in analyzing individual stocks. With a strong educational background in both finance and economics, I’ve developed a deep fascination with the stock market and the potential it offers to investors at all levels. I keep a close watch on market trends, particularly in the tech sector. My investment philo ...

Market Trends & Industry Dynamics - Samsung's chip manufacturing gains confidence despite losing market share [1] - Samsung aims to compete with TSMC in the high-margin foundry business [2] - The US government is trying to rebuild the semiconductor industry with the CHIPS Act, offering $39 billion in incentives [8] - The industry desires competition in advanced chip manufacturing to avoid reliance on TSMC [14] Investment Opportunities & Strategic Partnerships - Tesla is a marquee customer for Samsung's foundry business, trusting them with high-end chips for self-driving technology [3] - The deal with Tesla could increase Samsung's foundry business growth by approximately 10% [4] - Elon Musk indicates the deal with Samsung is bigger than $16.5 billion over multiple years [5] - Samsung is expanding capacity in Texas to supply US customers and circumvent Trump tariffs [8][9] Company Performance & Competitive Landscape - Samsung's semiconductor business has been a primary profit driver recently [2] - SK Hynix has surpassed Samsung in HBM (High Bandwidth Memory) chip technology [11] - Samsung is striving to regain ground and secure authorization to sell HBM chips to Nvidia [11] - Intel has not made significant progress in the foundry business, positioning Samsung as a strong alternative to TSMC [13]

For Elon Musk and Tesla, this represents a valuable opportunity to gain real-world foundry experience at an exceptionally low cost — something TSMC would never allow. It enables Tesla to enhance its chip design capabilities, particularly in manufacturability, while also gaining deeper manufacturing knowledge, which will give them more leverage in future negotiations with foundries. In the long run, Elon Musk's businesses will only demand more advanced chips, so acquiring core manufacturing expertise becomes ...

Tesla signing a major deal with Samsung to manufacture AI chips for Tesla cars. Christina parts Neville has got the details in today's tech. Hey Christina.>> Hi Melissa. Well, this is Samsung's biggest foundry win yet. 16.5% billion dollars.You talked about it, equivalent to roughly 8% of its 2024 sales or total revenues and runs over the next eight years with Elon Musk even suggesting the total amount is quote likely to be several times higher. Samsung will manufacture Tesla chips. They're called AI6 and a ...

Core Viewpoint - The technology stock market, particularly in artificial intelligence, is rapidly evolving with new companies emerging and established players like Taiwan Semiconductor Manufacturing (TSM) gaining market share in chipmaking and semiconductor technologies [1][2]. Group 1: Taiwan Semiconductor Manufacturing (TSM) - TSM's current stock price is $242.44, with a 52-week range of $133.57 to $248.28 and a dividend yield of 1.07% [2]. - The company is positioned as a key player in supporting data center expansion and semiconductor manufacturing in the U.S. due to new funding allocated for AI development [3]. - TSM has seen a significant stock rally, achieving a 48.5% increase over the past quarter, reaching a new 52-week high [7]. Group 2: U.S.-China AI Competition - The U.S. is in direct competition with China in the AI sector, highlighted by President Trump's AI Action Plan, which has implications for companies in the semiconductor value chain [2][4]. - The AI Action Plan allows China to import NVIDIA chips, which unexpectedly benefits TSM more than NVIDIA, as NVIDIA relies on TSM for manufacturing [5][6]. Group 3: Market Outlook and Analyst Ratings - Analysts forecast a 12-month price target for TSM at $258.33, indicating a potential upside of 6.57% from the current price [11]. - Charles Shi from Needham & Company has issued a Buy rating for TSM, with a valuation target of $270, suggesting a possible 10.2% upside [12]. - There is a sense of urgency for investors to act on TSM stock before potential new analyst ratings are released, as the stock may react quickly to news [13][14].

Hi, Leslie. Well, Samsung just scored its biggest foundry win yet. You mentioned it.16.5% billion dollar deal to produce Tesla's next generation AI chips. It's an eight-year contract, and Samsung shares are up on the news. Elon Musk did confirm the deal, saying the chips, called A16, will be made at Samsung's new fab in Taylor, Texas, and used to power Tesla's self-driving technology, eventually humanoid robots, and possibly even data centers, which could pose a threat for Nvidia way later on.OnX, Mus wrote ...

Supply Chain & Manufacturing Strategy - Tesla is diversifying its chip supply by partnering with Samsung for I6 chips, two generations ahead, while also maintaining an arrangement with TSMC for A5 chips [1][2][3] - The deal with Samsung extends to 2033, indicating a long-term commitment to this partnership [4] - Tesla aims to be involved in the engineering and ramp-up of chip production with Samsung, leveraging its perceived expertise in this area [6] Competitive Landscape - Samsung's contract manufacturing business has been lagging behind, making the deal with Tesla a significant vote of confidence [4] - Tesla is pursuing chip manufacturing in both Taiwan (TSMC) and the United States (Samsung in Texas), highlighting a dual-sourcing strategy [3][4] Financial Implications & Market Reaction - Tesla shares experienced a premarket increase of over 2% [3] - Samsung's shares reacted positively to the deal, suggesting market confidence in the partnership [4] Technological Advancement - Samsung already manufactures the A4 chip for Tesla's hardware, and the new deal involves the I6 chip, representing a significant technological leap [2] - Tesla's parallel arrangement with TSMC involves the A5 chip, indicating a multi-faceted approach to technology development [3]

Summary of Key Points from TSMC 2Q25 Earnings Call Company Overview - **Company**: Taiwan Semiconductor Manufacturing Company (TSMC) - **Industry**: Semiconductors Core Financial Results - **2Q25 Revenue**: NT$933.792 million, representing an increase of 11.3% quarter-over-quarter (QoQ) and 38.6% year-over-year (YoY) [7] - **Operating Expenses (Opex)**: NT$83.946 million, a decrease of 2.7% QoQ and an increase of 17.3% YoY [7] - **Earnings Per Share (EPS)**: NT$15.36, up 10.2% QoQ and 60.7% YoY, exceeding Morgan Stanley's estimate of NT$14.60 [7] - **Gross Margin (GM)**: 58.6%, a slight decrease of 17 basis points (bps) QoQ but an increase of 545 bps YoY [7] - **Operating Margin (OPM)**: 49.6%, up 112 bps QoQ and 708 bps YoY [7] 3Q25 Guidance - **Expected Revenue**: Between US$31.8 billion and US$33.0 billion, indicating an 8% increase at the mid-point QoQ [10] - **Expected EPS**: NT$13.33, a decrease of 13.2% QoQ but an increase of 6.3% YoY [10] - **Gross Margin Guidance**: Expected to be between 55.5% and 57.5% [10] Strategic Insights - **Wafer Pricing**: TSMC is expected to achieve its goal of over 53% gross margin, supported by strong execution and potential wafer price hikes [12][14] - **AI Revenue Growth**: TSMC's AI semiconductor revenue is projected to account for approximately 34% of its revenue by 2027 [22] - **Chip Production**: TSMC is expected to produce 5.1 million chips in 2025, with full-year GB200 NVL72 shipments expected to reach 30,000 [24] Market Dynamics - **Demand for Advanced Nodes**: There is strong demand for TSMC's 2nm and 3nm nodes, driven by smartphone and high-performance computing (HPC) applications [27][29] - **China's AI Semiconductor Demand**: The demand for AI semiconductors in China is expected to grow significantly, with the total addressable market (TAM) for cloud AI projected to reach US$48 billion by 2027 [44] Risks and Considerations - **FX Impact**: The potential foreign exchange impact on TSMC's financials could be offset by strong operational execution and pricing strategies [12] - **Geopolitical Risks**: Ongoing geopolitical tensions and US restrictions on China may pose risks to TSMC's operations and market access [84] Conclusion - TSMC's strong financial performance in 2Q25 and optimistic guidance for 3Q25 reflect robust demand in the semiconductor market, particularly in AI and advanced technology nodes. The company is well-positioned to capitalize on growth opportunities while navigating potential risks associated with geopolitical factors and market dynamics.

Core Viewpoint - The article highlights three undervalued stocks in the artificial intelligence (AI) sector: Taiwan Semiconductor, Adobe, and Alphabet, suggesting they present good investment opportunities despite market concerns [1]. Group 1: Company Performance and Positioning - Taiwan Semiconductor is the primary chip fabricator for leading tech companies like Nvidia and Apple, positioning it favorably in the AI race [3]. - The company reported a remarkable 44% revenue increase in the second quarter, exceeding expectations, and is projected to grow at nearly a 20% compound annual growth rate over the next five years [4]. - Adobe is recognized for its industry-standard graphics design tools, but faces concerns about being displaced by generative AI technologies [5]. - Despite these concerns, Adobe has invested in generative AI and developed its Firefly product, allowing it to remain competitive and relevant in the graphic design industry [6][9]. - Alphabet, the parent company of Google, faces similar fears regarding generative AI replacing Google Search; however, its entrenched user base and recent AI search features may help maintain its market share [10][11]. Group 2: Valuation and Market Comparison - Alphabet's stock trades at a significant discount compared to the broader market, with the S&P 500 trading at 23.8 times forward earnings, while Alphabet offers a reasonable price for its growth potential [12][14]. - Adobe is also considered cheap, trading at 18 times forward earnings, indicating potential for upside [14]. - Taiwan Semiconductor trades at 25 times forward earnings, which is a slight premium to the market, but its expected growth rate justifies this valuation, making it a bargain buy [16][17].