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Group 1 - Taiwan Semiconductor Manufacturing Company (TSMC) reported a 33% increase in June revenue year-over-year, totaling NT$207.87 billion ($6.38 billion) [1] - TSMC's second-quarter revenue reached NT$673.51 billion ($20.67 billion), exceeding analyst expectations by approximately NT$20 billion and marking a 40% increase from last year's NT$480.84 billion [1] - The company's American depositary receipts (ADRs) rose 2.5% to $189.17, reflecting an over 80% increase year-to-date [3] Group 2 - TSMC has benefited from the AI boom, which has driven demand for chips, compensating for decreased demand in other sectors such as automotive semiconductors [2] - The company surpassed its own revenue projections for the quarter, which were estimated between $19.6 billion to $20.4 billion [2] - TSMC is set to receive up to $6.6 billion in grants from the CHIPS and Science Act to enhance its production capacity in the U.S., with plans for three factories in Arizona operational by 2025, 2028, and 2030 [3]

A slight price-target increase only added to the widespread bullish sentiment on the company.For the most part, Monday was a rather forgettable day for the stock market. The S&P 500 index could only muster a 0.1% gain, and many titles traded sideways during the session. So the more than 1% gain of chipmaking giant Taiwan Semiconductor Manufacturing (TSM 1.44%) to a new, all-time high share price was notable.The long-tail trend is its friendThat day, Taiwan Semiconductor benefited from a long-tail trend, com ...

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: TSMC, with most of its factories based in Taiwan, is well placed to also reap the rewards of the AI frenzy. The entry of Taiwanese chip giant TSMC into the elite club of the world's most valuable companies is further proof that the generative AI revolution is shaking up Wall Street. TSMC, listed in both Taiwan and New York, br ...

The semiconductor industry is staging a solid rebound on growing demand and the optimism surrounding artificial intelligence (AI), especially generative AI. Inflationary pressures were one of the primary reasons behind slowing demand in the early part of 2024.However, pressures have eased with inflation showing signs of cooling. The Semiconductor Industry Association (SIA) said on Jul 5 that global semiconductor sales totaled $49.1 billion in May, increasing 19.3% year over year. Sequentially, sales jumped ...

Investment Rating - The report initiates coverage with a "Buy" rating for TSMC, setting a target price of $245.00, indicating a potential upside of 34.25% from the current price of $182.49 [1][4]. Core Insights - TSMC is expected to benefit from a simultaneous increase in volume and price due to the demand for AI computing chips and the upcoming product launches from major clients like Apple and Qualcomm [1]. - The advanced packaging capacity is projected to double over the next two years, driven by the increasing demand for higher performance chips [1]. - The foundry industry is experiencing a significant concentration of orders towards leading companies, with TSMC holding over 60% market share due to its superior yield and advanced process technology [1]. Summary by Sections Financial Summary - Total revenue for 2023 is reported at NT$2,161,736 million, with a forecasted increase to NT$2,859,312 million in 2024, representing a 32.3% growth [2]. - Net profit for 2023 is NT$837,768 million, expected to rise to NT$1,108,724 million in 2024, marking a 32.3% increase [2]. - Earnings per share (EPS) is projected to grow from NT$32.3 in 2023 to NT$43.4 in 2024, reflecting a 34.4% increase [2]. Company Overview - TSMC, founded in 1987, pioneered the foundry model and currently holds over 60% of the market share in the semiconductor industry [5][29]. - The company operates multiple fabs and focuses on advanced process technologies ranging from 3nm to 3um [5]. Business Segments - TSMC's advanced process technology contributes significantly to its revenue, with 67% of revenue coming from 7nm and below processes in the fiscal year 2023 [9]. - The company also provides mature process technologies for IoT, automotive, and consumer electronics, with a declining revenue contribution from 67% in 2020 to 33% in 2023 [9]. Competitive Advantages - TSMC's foundry model allows it to focus on chip manufacturing while its clients, primarily fabless companies, can concentrate on design [29]. - The company has established deep relationships with major clients like Apple and NVIDIA, which contribute significantly to its revenue [32]. Future Outlook - The demand for AI computing chips is expected to drive TSMC's growth, with advanced process and packaging technologies playing a crucial role in meeting this demand [1]. - TSMC's capital expenditures are projected to remain high, with a forecast of $32 billion for 2024, indicating strong growth prospects [35].

The company's crucial position in the artificial intelligence (AI) pipeline gives it pricing leverage that could boost its financials going forward.If you've paid even the slightest bit of attention to the tech world lately, you probably came across the topic of artificial intelligence (AI). It's harder to escape than a catchy pop song in the summer.With AI mania has come an influx of investors wanting to capitalize on the booming industry. This has caused the stocks of many companies dealing with AI to sky ...

Group 1 - The article suggests that Taiwan Semiconductor Manufacturing (TSM) is a prime investment opportunity as it plays a crucial role in the emerging AI industrial revolution, serving major AI chipmakers like Nvidia, AMD, and Intel [1][3] - TSM's first-quarter revenue increased by 13% year-over-year to $18.8 billion, with operating earnings rising 31% to $8.5 billion, and gross margins at 53.1% [4] - The company anticipates a revenue growth of up to 30% in the second quarter, projecting revenue of $20.4 billion due to strong demand for its manufacturing services [4] Group 2 - TSM is compared to historical figures like Levi Strauss during the Gold Rush, emphasizing its role as a supplier of essential components (semiconductors) for AI chip production [2][3] - The company is also a key supplier for Apple, particularly for its M-series chips, and is expected to supply new chips for Apple's data centers [4] - Broadcom, another major player in the mobile chipset market, relies on TSM as a key supplier, indicating TSM's broad influence across the semiconductor industry [5] Group 3 - TSM is expected to raise prices on its 3-nanometer wafers by over 5% and advanced packaging prices by 10% to 20% next year, which will positively impact its profit margins [6][7] - The stock is trading at elevated valuations as it moves towards a trillion-dollar market cap, but its role in the AI supply chain justifies the premium [7]

Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) is a leading player in the AI-powered growth stock sector, known for its high dividend payouts and strong market position in chip manufacturing [1][2]. Group 1: Dividend and Financial Performance - In 2023, TSMC paid $9.35 billion in dividends, with a net income of $26.6 billion, resulting in a payout ratio of approximately 35% [2]. - The dividend yield for 2023 stands at about 1.1% based on a market cap of $895 billion [2]. - Despite a 4.5% decline in revenue and a 17.5% drop in net income in 2023, TSMC increased its quarterly dividend from 3 to 3.5 Taiwanese dollars per share [2]. Group 2: Future Growth and Dividend Expectations - TSMC anticipates a strong recovery in 2024, projecting a dividend increase from 11.25 to "at least" 13.5 Taiwanese dollars per share [2]. - The recent dividend raise of 20% aligns with TSMC's long-term growth forecast of 15% to 20%, indicating a strategy of steadily increasing payouts [3]. - The company expects a turnaround in mature chip segments while continuing to benefit from the surging demand for AI chips [3].

Core Insights - The semiconductor industry, particularly companies like Taiwan Semiconductor Manufacturing Company (TSMC), is positioned to benefit significantly from the ongoing artificial intelligence (AI) boom, with the global AI market projected to generate nearly $2.6 trillion in annual revenue by 2032, up from an estimated $538 billion last year [1][6] Group 1: TSMC's Role in AI - TSMC is a key player in the AI semiconductor market, providing advanced manufacturing processes that enable companies like Nvidia to produce powerful AI chips [3][4] - TSMC's 4N and 4NP manufacturing processes are critical for Nvidia's Hopper and Blackwell AI processors, respectively, highlighting TSMC's importance in the AI chip supply chain [3][4] - A diverse range of customers, including Intel, Qualcomm, AMD, Apple, and Broadcom, rely on TSMC for chip production, indicating strong demand for TSMC's services [4][5] Group 2: Financial Performance and Growth - TSMC's revenue increased by 27% year-over-year in the first five months of 2024, a recovery from a decline in the previous year due to poor market demand [5] - The company holds a 62% market share in the foundry sector, significantly ahead of its closest competitor, Samsung, which allows TSMC to exercise pricing power [5] - TSMC plans to increase its advanced chip production capacity by 60% by 2026 to meet rising AI-related orders, further solidifying its market position [5] Group 3: Future Projections - Analysts project TSMC's earnings to grow at an annual rate of 21% over the next five years, with earnings per share expected to increase nearly 23% in 2024 and 25% in 2025 [7][9] - The AI chip market is anticipated to generate $372 billion in revenue by 2032, a substantial increase from $15 billion in 2022, indicating a long-term growth opportunity for TSMC [6] - TSMC's overall revenue could reach $180 billion by 2030, up from $69 billion in 2023, driven by the expanding AI market [9]