Taiwan Semiconductor is a vital business in the AI realm.The best artificial intelligence (AI) stock to buy right now is an incredibly hot topic. Some may argue that it's Nvidia; others may prefer Microsoft. While there are merits to both arguments, I prefer a different AI company.Like most AI businesses, my top pick isn't 100% focused on AI; it's all part of a larger strategy. Furthermore, without Taiwan Semiconductor Manufacturing (TSM -1.27%), none of the AI technologies would be possible. Luckily for in ...

Core Viewpoint - The geopolitical ties between TSMC and its clients create significant risks for semiconductor investors, necessitating a strategy to mitigate these risks while acknowledging the importance of TSMC in the industry [1][2][3]. Group 1: TSMC's Industry Role - TSMC is the leading manufacturer of advanced chips, producing for major companies like Apple, Nvidia, AMD, Qualcomm, and Intel, which rely on TSMC despite their own foundry capabilities [2]. - The geopolitical situation in Taiwan directly impacts the supply chain for these companies, as most advanced chips are manufactured in Taiwan, limiting alternatives in case of a crisis [3]. Group 2: Financial Performance - TSMC reported a revenue of $40 billion in the first half of the year, marking a 28% increase year-over-year, with comprehensive income rising to $17 billion, up 35% from the previous year [4]. - Despite its strong financials, TSMC's price-to-earnings (P/E) ratio is currently at 30, above its five-year average of 24, indicating a potential valuation risk [5]. Group 3: Investment Considerations - Investors should recognize the dissonance between TSMC's risks and those of its customers, as the premium valuations of chip design stocks may not accurately reflect the underlying risks associated with TSMC [6]. - A strategy that involves waiting for discounted valuations in TSMC and its customers may be more prudent than solely investing in TSMC or exiting chip stocks altogether [7].

asbe/iStock via Getty Images We previously covered Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in June 2024, discussing how NVIDIA Corporation's (NVDA) FQ1'25 outperformance and promising market trends surrounding generative AI had contributed to the stock's excellent rally. This was on top of the improved market sentiments from the foundry's recent price hikes, fully booked position through 2026, and expanded manufacturing capacity through the end of the decade, warranting our reiterated ...

How much demand is there for AI solutions?In today's video, I discuss Taiwan Semiconductor Manufacturing (TSM 7.29%) and other semiconductor companies. Check out the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were the market prices of July 30, 2024. The video was published on July 30, 2024. ...

Taiwan Semiconductor Manufacturing (NYSE:TSM), the world’s largest chip manufacturer, reported very strong second-quarter results and is clearly benefiting tremendously from the proliferation of artificial intelligence. Moreover, the valuation of Taiwan Semiconductor stock is undemanding while the firm has multiple, strong, positive catalysts. But investors should be aware the stock does pose more geopolitical risk than any other popular stock in the U.S. equities market.Given the latter point, I rate the s ...

BING-JHEN HONG TSMC (NYSE:TSM) recently reported its 2Q24 results and I joined in for the earnings call. Before I jump in on the earnings results, I thought I would first comment on the earnings call. In my opinion, the mood on the earnings call was much more jovial compared to prior earnings call and CEO Wei also sounded more energetic than he did before. In fact, TSMC CEO Wei even tried to be funny by saying Nvidia (NVDA) CEO Jensen's tagline and changing it for TSMC: "The more TSMC wafers you buy, th ...

Why the recent sell-off in the stock could be a buying opportunity.After a strong start to the year, shares of Taiwan Semiconductor Manufacturing (TSM -1.19%), or TSMC for short, have cooled off recently following some geopolitical worries. The stock is still up over 50% year to date, but down about 17% from its recent highs. The question for investors is whether TSMC is a buy following the pullback in the stock.Riding the AI semiconductor waveTSMC is a semiconductor contract manufacturer, which means that ...

Group 1: Core Insights - Taiwan Semiconductor Manufacturing (TSMC) is positioned as a critical player in the AI chip market, potentially offering superior investment opportunities compared to competitors like Nvidia [1][5] - Nvidia currently holds an estimated 80% market share in the AI-powered chip space, with significant pricing power contributing to its 157% stock price increase over the past year [2][4] - TSMC serves as a manufacturing partner for several leading semiconductor companies, including Nvidia, AMD, Broadcom, Intel, Sony, Qualcomm, NXP Semiconductors, and Amazon, highlighting its essential role in the industry [4] Group 2: Market Dynamics - The demand for TSMC's manufacturing capabilities is expected to continue growing, driven by its diverse customer base across the semiconductor industry [5] - While Nvidia's growth may face challenges due to increasing competition, TSMC's broad partnerships position it for sustained demand and growth in the long term [5] Group 3: Valuation and Investment Strategy - TSMC currently trades at a forward price-to-earnings (P/E) ratio of 24.6, indicating some future growth may already be reflected in its stock price [7] - A dollar-cost averaging strategy is recommended for investors looking to build a position in TSMC, as the company is expected to maintain its momentum in the AI and chip sectors [7]

Core Insights - Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) is a leading player in the AI chipset market, benefiting from a surge in demand for advanced chip technologies [1][2] - The company reported strong financial results for Q2 2024, driven by a boom in 3-nanometer chipsets, with significant revenue growth across various segments [1][3] Financial Performance - TSM's Q2 2024 revenue increased significantly, with High-Performance Computing up 28%, Digital Consumer Electronics up 20%, IoT up 6%, and Automotive up 5%, while Smartphone sales only dipped 1% [1] - For Q3 2024, TSM projects revenues between $22.4 billion and $23.2 billion, with a year-over-year growth estimate of 31.5% for Q3 and 23% for the full year [3] - The consensus estimate for Q3 2024 earnings is $1.69 per share, reflecting a 31% year-over-year growth, with 2024 earnings expected at $6.37 per share, indicating an 18.9% increase [3][4] Clientele and Market Position - TSM is the largest manufacturer for NVIDIA and serves other major clients like AMD, Apple, Broadcom, and Intel, indicating a robust clientele [2] - The company is ramping up production of 3nm and developing 2nm technologies, contributing to its revenue growth [2] Industry Outlook - TSM is positioned in the top 1% of the Zacks Defined Semiconductor - Circuit Foundry Industry, suggesting strong industry performance in the coming months [5] - The company maintains a reasonable valuation with a forward P/E of 25.16x, P/S of 10.85x, and P/B of 7.13x, aligning with industry averages [5] Stock Performance - TSM's stock price reached an all-time high of $193.47 on July 11 but fell 16.3% due to market fluctuations related to AI [7] - Despite the recent decline, the stock has increased nearly 57% year-to-date, with brokerage firms projecting a 27.7% increase from the last closing price of $161.94 [7][8]

证 券 研 究 报 告 台积电（TSM）FY24Q2 业绩点评及法说会纪要 会议时间：2024 年 7 月 18 日 会议地点：线上 24Q2 业绩超预期，上修 2024 全年 CAPEX 指引中值 ❖ 事项： 2024 年 7 月 18 日台积电发布 2024 年 Q2 季度报告，并召开业绩说明会。 2024Q2，公司实现营收 6735.1 亿新台币/208.2 亿美元，美元计价同比增长 32.8%，环比增加 10.3%；毛利率为 53.2%，同比下降 0.9pct，环比提升 0.1pct。 ❖ 评论： 1. 业绩总览：2024Q2 实现营收 6735.1 亿新台币/208.2 亿美元（美元计价： QoQ+10.3%，YoY+32.8%），超出指引上沿（此前指引为 196~204 亿美金）；环 比增长主要得益于 3nm 和 5nm 制程的强劲需求，抵消了部分智能手机市场季 节性波动的影响；2024Q2 实现毛利率 53.2%（QoQ+0.1pct，YoY-0.9pct），超 出指引上沿（前期指引为 51%~53%），主要受益于成本和汇率的改善，整体产 能利用率高于公司三个月前的预测。 2. 营收按市场拆分： ...