December 8, 2025 05:04 PM GMT Investor Presentation | Asia Pacific Greater China Semiconductors: Global AI Supply- Chain Updates; CoWoS expansion and China AI semi development | Downloaded by Neil.Wang@troweprice.com M | Not for redistribution without written consent of Morgan Stanley | | | --- | --- | --- | | | | Foundation | | December 8, 2025 05:04 PM GMT | | | | Investor Presentation Asia Pacific | Morgan Stanley Taiwan Limited+ | | | | Charlie Chan | | | | Equity Analyst | | | Greater China Semiconduct ...

Taiwan Semiconductor Manufacturing Company Limited ( TSM ) stock has entered a bit of a holding pattern after having an impressive year as AI chip demand has lifted the company's operating results and margins. Despite some recent choppiness andTo follow me click the "Follow" button! (Easy right?) Hi there, thanks for coming to my profile page! My name is Kumquat Research (but you can call me Jeremy) and I've been writing for Seeking Alpha on and off for going on ten years now, beginning with my inaugural pu ...

Core Insights - AlphaTON Capital Corp has successfully deployed its first NVIDIA H200 GPUs on Telegram's Cocoon AI Network, marking a significant milestone in decentralized AI computing infrastructure [1][4] - The company is launching the OwnYourNode initiative in partnership with Atlantian Cybernetics Development Cluster (AC|DC), aimed at democratizing access to AI infrastructure ownership [3][5] - The initiative allows individuals and institutions to purchase fractionalized GPUs, whole GPUs, and mini clusters, enabling broader participation in the AI ecosystem [5][6] Deployment and Technology - The H200 GPUs represent advanced AI computing technology from TSMC, Intel, Nvidia, and SuperMicro, providing superior performance for complex machine learning workloads [4] - The deployment adds critical computing capacity to Telegram's decentralized AI infrastructure, supporting its mission to deliver secure AI services to over one billion users [4][9] OwnYourNode Initiative - The OwnYourNode program offers flexible ownership options, including fractionalized GPU ownership for entry-level participants, whole GPU ownership for complete control, and mini cluster solutions for institutions [5][6] - All node owners will benefit from the revenue generated by their computing resources, aligning economic incentives with network growth [6] Strategic Partnership - The partnership with AC|DC is described as a pivotal moment in redefining digital infrastructure, allowing broader participation and collective benefit in the intelligence economy [7][8] - The initiative aims to transform compute from a utility into a shared civic asset, promoting a future where AI benefits are co-created by the communities they serve [9] Company Overview - AlphaTON Capital Corp is a leading technology public company scaling the Telegram super app, with an addressable market of 1 billion monthly active users [10] - The company employs a comprehensive M&A and treasury strategy to generate sustainable returns for shareholders while maintaining governance standards and reporting transparency as a Nasdaq-listed entity [10]

Summary of Key Points from the Conference Call Industry Overview - **Focus on AI Technology**: The conference highlights the dominance of AI in the technology sector, particularly in the Asia-Pacific region, with expectations for continued growth in AI logic and memory semiconductors and server supply chains due to constrained supply [3][6][9]. - **Concerns in Non-AI Segments**: There are significant concerns regarding the PC and smartphone markets, especially in mid- and low-tier segments, due to anticipated demand issues stemming from memory and processor cost pressures [3][6][9]. Core Insights and Arguments - **AI Sector Growth**: The AI thematic has driven a tech stock rally through 2024-25, with US tech and semiconductor valuations nearing dot-com peak levels. Continued involvement in AI trades is recommended for 2026, with expected consensus earnings estimate upgrades for Asia AI logic/memory semiconductors [3][6][9]. - **Supply Chain Dynamics**: The supply crunch in AI hardware and chips is expected to support further earnings estimate hikes. The demand for AI servers is projected to increase, with hyperscalers' capital expenditure plans showing potential for further upside [9][12]. - **Memory Market Outlook**: A triple super-cycle in the memory market (DRAM, NAND, and HBM) is anticipated to continue into 2027, benefiting from AI investments while supply increases remain limited [9][12]. Key Companies and Recommendations - **Top Picks in AI Logic and Memory Semiconductors**: - **TSMC (2330 TT)**: Rated Buy, with a target price indicating a 31.6% upside [19]. - **SK Hynix (000660 KS)**: Rated Buy, with a target price indicating a 56.1% upside [19]. - **Samsung (005930 KS)**: Rated Buy, with a target price indicating a 48.8% upside [19]. - **AI Component Sector**: - **EMC (2383 TT)**: Rated Buy, with a target price indicating a 13.9% upside [19]. - **Shengyi Technology (600183 CH)**: Rated Buy, with a target price indicating an 18.2% upside [19]. - **India IT Services**: Companies like Infosys, Cognizant, and eClerx are highlighted as top picks, all rated Buy, with expectations for marginally better revenue growth in FY26 [15][19]. Additional Important Insights - **Risks to Monitor**: Potential risks include chip/component overbooking and execution risks from aggressive data center investments by new AI startups [4][6]. - **Impact of Memory Price Hikes**: Memory price increases are expected to negatively impact demand for PCs and smartphones, particularly affecting lower-end models more severely than higher-end ones [9][12]. - **Sector-Specific Trends**: The conference also discusses trends in various sectors, including automotive semiconductors, intelligent vehicles in China, and robotics, with specific companies recommended for investment based on their market positions and growth potential [12][15][17]. Conclusion The conference call emphasizes the critical role of AI in shaping the technology landscape, with a strong recommendation for investors to focus on AI-related stocks while being cautious of potential risks in non-AI segments. The anticipated growth in the memory market and the strategic positioning of key companies present significant investment opportunities.

UBS sets a price target of $330 for TSM, indicating an 11.97% potential increase.TSMC dominates with a 71% share in the foundry market, signaling strong future performance.The company benefits from the ongoing cloud and AI supercycle, enhancing its financial stability and investor attractiveness.Taiwan Semiconductor Manufacturing Company (NYSE:TSM) is a leading player in the semiconductor industry, known for its significant market share and advanced technology. UBS recently set a price target of $330 for TS ...

Core Insights - The article highlights the expertise of Uttam as a growth-oriented investment analyst focusing on the technology sector, particularly in semiconductors, Artificial Intelligence, and Cloud software [1] - Uttam's research extends to MedTech, Defense Tech, and Renewable Energy, indicating a broad interest in various high-growth industries [1] - The Pragmatic Optimist Newsletter, co-authored by Uttam and his wife, is recognized by major publications like the Wall Street Journal and Forbes, showcasing its influence in the investment community [1] - Prior experience in Silicon Valley with leading technology firms such as Apple and Google adds credibility to Uttam's insights and analyses [1]

Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) is positioned as a leading investment opportunity due to its critical role in the AI sector and expected growth in demand for high-end chips [1][4][8]. Investment Potential - TSMC's stock could potentially triple in value over the next five years if AI buildout projections materialize [2][8]. - The company has experienced a 260% increase in stock price over the past three years, indicating strong market performance [8]. Market Position - TSMC is the largest semiconductor manufacturer by revenue, with limited competition in the high-end chip foundry space, primarily facing challenges from Intel and Samsung [5][4]. - Major tech companies like Nvidia and Apple rely on TSMC for chip manufacturing, underscoring its importance in the tech supply chain [4]. Financial Metrics - TSMC's current market capitalization is $1,528 billion, with a gross margin of 57.75% and a dividend yield of 0.98% [7]. - The company has maintained steady free cash flow, which has increased by 70% over the past three years [9]. Production Capacity and Investments - TSMC is investing $160 billion in U.S.-based production facilities to enhance its manufacturing capabilities and mitigate import tariffs [11]. - Once the U.S. facilities are operational, TSMC's free cash flow is expected to significantly increase, allowing for potential share buybacks or dividends [12]. Industry Outlook - Nvidia projects that global data center capital expenditure will rise to $3 trillion to $4 trillion by 2030, a significant increase from the expected $600 billion in 2025 [7]. - AMD anticipates a 60% compound annual growth rate (CAGR) for its data center division through 2030, indicating robust growth in the AI sector [7].

Core Insights - TSMC's stock price appreciated by 4.37%, aligning with the benchmark, indicating continued upward momentum for the company [1] - The expectation is that TSMC's stock may continue to appreciate in price, driven by macroeconomic trends and investor behavior [1] Company Overview - TSMC is a key player in the semiconductor industry, and its performance is closely monitored by investors [1] - The company is influenced by central bank policies and sector rotation, which are critical factors in the investment landscape [1] Investment Strategy - The analysis emphasizes the importance of understanding macro trends to construct actionable investment strategies [1] - The focus is on long-term investing, encouraging investors to build confidence through shared insights and collaboration [1]

Summary of Key Points from the Conference Call Industry Overview - **Industry Focus**: Asia AI Semiconductor and Server Supply Chain - **Market Dynamics**: The demand for AI is real and rapidly influencing various sectors, with concerns about a potential "AI bubble" due to high investment numbers over the next five years. However, supply chain constraints are expected to support the up-cycle for semiconductor and server supply chain companies in Asia, leading to upward revisions in earnings forecasts into the first half of 2026 [3][7][8]. Core Insights and Arguments - **Earnings Outlook**: Continued upward revisions in earnings for the AI hardware sector are anticipated due to constrained supply, with a focus on companies like TSMC, ASPEED, ASE, and others rated as "Buy" [3][7][17]. - **Supply Chain Preparedness**: The supply chain (semiconductors, components, power supply) is not adequately prepared for the skyrocketing demand, which is expected to persist into 2027 [3][7][9]. - **Investment Trends**: US hyperscalers are expected to increase their capital expenditures (capex) significantly, with potential upside beyond current consensus estimates [7][14]. - **AI Demand Projections**: Tracking of new GW-scale data center projects indicates a rising demand for AI hardware/chips, with estimates suggesting consumption of approximately 5-7 million AI chips annually from these projects [10][11]. Key Risks - **Overbooking Risks**: There is a potential risk of chip/component overbooking for 2026, which could impact pricing and order strength [8][10]. - **Execution Risks**: The aggressive investments by AI startups and infrastructure companies pose execution risks, particularly for less financially robust players like OpenAI [8][10]. Company-Specific Insights - **Top Picks**: The report highlights several companies as top picks, including TSMC, ASPEED, ASE, Delta, Lite-On, and others, all rated as "Buy" [3][17][19]. - **Capacity Expansion**: TSMC is expected to expand its CoWoS capacity significantly, with projections of 1,050-1,100k pieces in 2026, primarily benefiting companies like Broadcom and nVidia [11][23]. - **Server Shipments**: General server unit forecasts have been raised to a 15% growth in 2026, driven by AI workloads and increased demand from major cloud service providers [12][13]. Additional Insights - **Long-Term AI Development**: The development of large language models (LLMs) is far from saturation, with ongoing investments expected from major players like Google and OpenAI [15][21]. - **Cloud Capex Growth**: The consensus for capex growth among top cloud service providers has been revised up significantly, indicating strong market confidence in AI monetization and infrastructure investments [14][19]. - **Valuation of ODMs**: Competitive ODMs like Hon Hai, Quanta, and Wiwynn are highlighted as attractive due to their strong customer bases and partnerships with major tech companies [25][28][29]. Conclusion - The Asia AI semiconductor and server supply chain is poised for growth, driven by real demand for AI technologies and constrained supply. While there are risks associated with overbooking and execution, the overall outlook remains positive, with several companies identified as strong investment opportunities.

Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) is positioned to benefit significantly from the ongoing AI infrastructure investments, potentially leading to a breakout similar to Nvidia's by 2026 [5][18]. Industry Overview - The semiconductor industry has been a key player in the rise of generative AI applications, with companies like Nvidia, AMD, and Broadcom being prominent names [2][3]. - There is a growing interest among investors to explore opportunities beyond the traditional chip manufacturers as hyperscalers increase their investments in AI infrastructure [2][3]. Company Analysis: Taiwan Semiconductor Manufacturing Company (TSMC) - TSMC holds approximately 68% market share in the global chip foundry market, making it the largest by revenue [6]. - The company's diverse customer base allows it to benefit from the overall increase in chip demand, positioning it as a "pick-and-shovel" opportunity in the semiconductor sector [7]. - Analysts predict that AI capital expenditures among hyperscalers could reach nearly $500 billion next year, with the potential for multi-year opportunities worth several trillion dollars [9][10]. Future Outlook - The year 2026 is anticipated to mark the beginning of a significant AI infrastructure era, with increasing demand for chips expected to drive TSMC's revenue and profit growth [13]. - Recent large-scale deals indicate sustained demand for GPUs, suggesting that TSMC will play a crucial role in fulfilling these needs [11][12]. - TSMC's expansion efforts in regions like Arizona, Germany, and Japan have helped mitigate geopolitical risks associated with tensions between China and Taiwan [16]. Investment Consideration - Despite a premium valuation compared to earlier lows, TSMC's stock remains an attractive long-term investment due to the early-stage nature of the AI infrastructure opportunity [14][17]. - The ongoing deal flow and TSMC's critical role in the AI landscape suggest a potential for prolonged share price increases as the market recognizes its influence [17].