When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about TSMC (TSM) . TSMC currently has an average brokerage recommendation (ABR) of 1.30, on a scale ...

Core Insights - The Australia Total Spend Management (TSM) Market is projected to grow from USD 303 million in 2023 to USD 459 million by 2029, reflecting a Compound Annual Growth Rate (CAGR) of 7.01% [2][10]. Market Drivers - Technological innovations such as cloud computing, artificial intelligence, and advanced data analytics are enhancing decision-making and operational efficiencies, driving market expansion [3]. - The focus on cost efficiency is increasing the demand for TSM solutions, as businesses seek to optimize procurement, spend analysis, and contract management [4]. - Stringent regulatory compliance and governance mandates are necessitating transparent spend management, further propelling the growth of the TSM market [5]. Market Challenges - Data integration complexity and resistance to change within organizations are significant challenges that the TSM market must navigate [6]. Regional Insights - New South Wales (NSW) holds the largest market share in the TSM sector, attributed to its status as a financial hub and the concentration of corporate activities [7]. Key Players - Major companies in the TSM landscape include SAP SE, Oracle Corporation, IBM Corporation, and others, which are focused on delivering comprehensive TSM solutions [8][11]. Market Outlook - The continuous growth of the TSM market in Australia indicates a rising need for organizations to optimize expenditures and enhance financial control, supported by advanced technologies [9].

Investment Rating - The report recommends a "Buy" rating for TSMC, expecting a relative return of over 20% within the next six months [7]. Core Insights - TSMC's Q3 2024 revenue reached $23.5 billion, exceeding the company's guidance and Bloomberg consensus estimates, with a net profit of $10.07 billion, reflecting a year-on-year growth of 54.2% [1][2]. - Strong demand for AI and smartphones has driven the utilization rates of 3nm and 5nm process technologies, with advanced technology accounting for 69% of total wafer revenue [1]. - The company anticipates a significant increase in revenue contribution from AI server processors, projected to grow more than twofold this year and account for approximately 15% of total revenue in 2024 [1]. Revenue and Profitability - TSMC's gross margin for Q3 was 57.8%, surpassing guidance and consensus estimates, while operating margin was 47.5% [1]. - The company expects Q4 revenue to be between $26.1 billion and $26.9 billion, with a gross margin forecast of 57%-59% [1]. Business Segmentation - The revenue breakdown shows that the High-Performance Computing (HPC) platform accounts for 51% of total revenue, followed by smartphones at 34%, IoT at 7%, automotive at 5%, and DCE at 1% [1]. - The demand for CoWoS (Chip on Wafer on Substrate) significantly exceeds TSMC's supply capacity, despite a doubling of production capacity this year [1]. Global Expansion - TSMC has made significant progress in its global strategic layout, including the construction of three large fabs in Arizona, a new fab in Kumamoto, Japan, and a special process plant in Dresden, Germany, set to begin production by the end of 2027 [1].

Core Insights - Nvidia has experienced a remarkable 32,600% increase in stock value over the past decade, significantly outperforming the S&P 500's 207% gain, making it a "millionaire-maker" stock for long-term investors [1] - TSMC is positioned as a strong alternative investment in the semiconductor space, particularly for those seeking exposure to the AI boom, as it plays a critical role in chip manufacturing for major companies [2][3] Nvidia's Performance - Nvidia's stock has surged due to its central role in the AI revolution, with its GPUs being essential for training and deploying AI models [2] - The company currently trades at a high valuation of 65 times earnings and 36 times sales, which may deter some investors [2] TSMC's Market Position - TSMC is the world's largest semiconductor foundry, serving major clients like Apple, Nvidia, and Qualcomm, and has a customer base of 528, producing nearly 12,000 products across various markets [3][4] - TSMC's revenue for Q3 2024 reached $23.5 billion, a 36% year-over-year increase, with net profit rising 54% to $10.1 billion, driven by demand for advanced chip nodes [4] Advanced Technology and Future Growth - TSMC's advanced-process nodes (7nm or smaller) accounted for 69% of total revenue, with the 3nm node contributing 20% of revenue, indicating strong adoption of cutting-edge technology [4][5] - The company is developing 2nm technology, expected to enhance its product offerings and growth potential [5] Market Share and Financial Outlook - TSMC holds a dominant 62% market share in the global semiconductor foundry market, significantly ahead of Samsung's 11% [6] - The company forecasts Q4 revenue of $26.5 billion, representing a potential 35% increase, with an operating margin of 47.5% [6] Industry Growth Potential - The global semiconductor market is projected to grow from $729 billion in 2022 to $1.47 trillion by 2030, with the foundry market expected to rise from $122 billion to $276 billion by 2033 [7] - TSMC's new Foundry 2.0 business model has expanded its addressable market from $115 billion to $250 billion, indicating sustained growth potential [7] Revenue Estimates and Valuation - Analysts predict TSMC will achieve $89.3 billion in revenue for 2024, a 28% increase from the previous year, with upward revisions in revenue estimates expected [8][9] - TSMC is currently trading at 35 times trailing earnings and 25 times forward earnings, making it a more attractive investment compared to Nvidia [9] Historical Performance - TSMC's stock has increased over nine times in the past decade, suggesting potential for similar future performance [10]

AI-related chip demand has far outpaced expectations. Taiwan Semiconductor Manufacturing (TSM 2.78%) has been on fire recently. After the company reported Q3 results on Oct. 17, the stock jumped 10% on the strength of the business. A pop like this may discourage some investors from buying Taiwan Semi stock because they think they've missed the boat. However, that's far from the case, as there are still multiple strong reasons to buy the stock, even after the market's reaction to earnings. New technology wil ...

Investment Rating - The investment rating for the company is "Buy," indicating an expected relative increase of over 15% compared to the CSI 300 index in the next six months [3][4]. Core Insights - The company reported Q3 2024 revenue of $23.5 billion, a year-on-year increase of 36%, and a gross margin of 57.8%, up 3.5 percentage points year-on-year, driven by strong demand in smartphones and AI [1]. - The Q3 net profit attributable to shareholders was $10.1 billion, reflecting a 51% year-on-year growth [1]. - The company exceeded its previous revenue guidance of $22.4-23.2 billion, primarily due to increased demand for 3nm and 5nm processes [1]. - The company expects Q4 revenue to be between $26.1-26.9 billion, with a gross margin of 57-59%, indicating continued strong demand in the AI and smartphone markets [1]. Revenue and Profitability - Q3 revenue was $23.5 billion, a 36% increase year-on-year and a 12.9% increase quarter-on-quarter [1]. - Gross margin for Q3 was 57.8%, up 3.5 percentage points year-on-year and 4.6 percentage points quarter-on-quarter [1]. - The net profit for Q3 was $10.1 billion, representing a 51% year-on-year increase [1]. Capital Expenditure and Capacity Expansion - The company has guided for a capital expenditure of over $30 billion for 2024, with 70-80% allocated to advanced processes [1]. - Q3 capital expenditure was $6.4 billion, a 10% decrease year-on-year but a 1% increase quarter-on-quarter [1]. - The company is expanding capacity in various regions, including a wafer fab in Arizona expected to start production in 2025 [1]. Market Demand and Product Mix - In Q3, the high-performance computing (HPC) segment accounted for 51% of revenue, while smartphones contributed 34% [1]. - The 3nm process accounted for 20% of total revenue, an increase of 5 percentage points quarter-on-quarter [1]. - The company anticipates continued strong demand from AI and smartphones, which is expected to drive revenue growth in Q4 [1].

Spoiler: The value of your investment would go from five figures to six figures.Taiwan Semiconductor Manufacturing (TSM -1.49%), or TSMC, is quite a popular stock. To understand why, check out its trailing returns in the table below. (I'll add returns for an S&P 500 index fund, too, for comparison.) 5-Year Avg. Annual Return10-Year Avg. Annual Return15-Year Avg. Annual ReturnTaiwan Semiconductor Manufacturing33.65%26.41%22.96%SPDR S&P 500 ETF16.22%13.99%13.95%See? Amazing. Even the S&P 500 returns are quite ...

TSMC halted shipments to a client after its chips were found in Huawei products, per reports.TSMC and other chipmakers are barred from doing business with Huawei without US government approval.Min-yen Chiang, a researcher, told BI it raises the questions about a "shadow network" of chip supply. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Go to newsletter preferences Thanks for signing up! Access yo ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Nvidia outsources manufacturing to Taiwan Semiconductor Manufacturing Company, so the latter's comments carry great weight among investors.Many stock investors are concerned there is a bubble forming in AI stocks. These comments from Taiwan Semiconductor (TSM -0.75%) can relieve some worry.*Stock prices used were the afternoon prices of Oct. 21, 2024. The video was published on Oct. 23, 2024. ...