Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) is experiencing a recovery attempt after significant losses of nearly -10% prior to the earnings report [1] Group 1 - The stock was previously attempting to recover from significant declining losses [1]

Group 1: Nvidia's Market Position and Performance - Nvidia holds a dominant position in the data center GPU market with an estimated 98% market share in 2023, crucial for AI applications [1] - The company has experienced significant growth, adding approximately $3 trillion in market capitalization since the launch of ChatGPT, with stock prices increasing nearly 1,000% [1] - Demand for Nvidia's chips continues to exceed supply, with the new Blackwell platform sold out for the next 12 months, indicating "insane" demand according to CEO Jensen Huang [1] Group 2: Risks Facing Nvidia - Nvidia faces competition from Advanced Micro Devices (AMD), which has launched the MI325X accelerator to challenge Nvidia's offerings [2] - Major customers like Amazon, Microsoft, and Meta Platforms are developing their own chips, potentially reducing their reliance on Nvidia [2] - Investor skepticism exists regarding the sustainability of the AI boom, with concerns about profitability and the cyclical nature of Nvidia's business [2] Group 3: TSMC's Market Position and Performance - Taiwan Semiconductor Manufacturing Corporation (TSMC) is the largest semiconductor manufacturer globally, handling over 50% of contract chip manufacturing and holding around 90% market share in advanced chips [4] - TSMC reported a 39% increase in revenue to $23.5 billion, with net income rising 54% to $10.1 billion, showcasing strong demand for its 3nm and 5nm technologies [5] - The company provided fourth-quarter revenue guidance of $26.1 billion to $26.9 billion, reflecting a 35% year-over-year increase at the midpoint [5] Group 4: Competitive Advantages of TSMC - TSMC benefits from a significant competitive advantage due to its dominant market share and expertise in advanced chip manufacturing [4] - The company is positioned favorably as rivals like Intel and Samsung are facing challenges, with Intel restructuring and Samsung reporting weak results [6] - TSMC's stock is considered affordable with a P/E ratio of 36, despite its faster growth compared to other tech giants [6] Group 5: Investment Considerations - While Nvidia remains a strong company, TSMC presents a lower-risk investment opportunity with a cheaper valuation and entrenched competitive advantages [7] - TSMC is recommended as a solid choice for investors looking to enter the AI stock market [7]

Mid-October brought a flurry of earnings results from major semiconductor firms like Taiwan Semiconductor Manufacturing Co. NYSE: TSM and ASML Holding N.V. NASDAQ: ASML, plus reports from several big banks, Netflix Inc. NASDAQ: NFLX, American Express Co. NYSE: AXP, and many others. This quarterly check-in allows investors to gauge how these and other firms have performed over the last several months. As always, investors have watched to see whether there are any surprises, including top- or bottom-line perf ...

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. ...

Taiwan Semiconductor Manufacturing Company (NYSE: TSM), the world’s largest contract chipmaker, continues to make waves in the semiconductor industry with its remarkable performance in the third quarter of 2024.The company reported a year-over-year profit surge of 54%, further cementing its leadership in the global market. Currently trading at $201.4, with a 6% gain over the last five days, TSMC’s robust earnings and strategic partnerships are fueling its rise.TSMC five-day price chart. Source: Google Finan ...

Needham analyst Charles Shi maintained Taiwan Semiconductor Manufacturing Company TSM with a Buy and raised the price target from $210 to $225.The re-rating followed Taiwan Semiconductor’s upbeat quarterly print Thursday.Shi said that Taiwan Semiconductor’s third-quarter print showed a much more robust performance of 3nm primarily due to Apple Inc AAPL.Also Read: What’s Going On With Nvidia Stock On Friday?In contrast, the analyst says 5nm revenue is leveling off after six consecutive quarters of strong seq ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

I am an experienced financial analyst and a former writer for Fade The Market on Seeking Alpha, with a passion for numbers and a knack for unraveling complex financial data. Armed with a strong financial modeling and data analysis background, I thrive on providing accurate insights and recommendations to drive informed financial decisions. I possess a keen eye for detail and possess a solid understanding of market trends and economic indicators. My expertise lies in evaluating investment opportunities, asse ...

Group 1 - Taiwan Semiconductor Manufacturing (TSMC) reported better-than-expected earnings for its third fiscal quarter, positively impacting the entire chip sector [1] - The earnings report highlighted significant growth in earnings and free cash flow for TSMC [1]

Taiwan Semiconductor Manufacturing Company (TSM) reported a 54% hike in net profit on Thursday, as global chipmakers continue to benefit from demand boosted by AI applications. The company's net income was 352.3 billion Taiwanese dollars ($10.1 billion) over the July-September quarter, surpassing an LSEG estimate of $300.2 billion Taiwanese dollars cited by Reuters, as quoted on CNBC. The stock gained 9.8% on Oct. 17, 2024. Find the latest EPS estimates and surprises on Zacks Earnings Calendar. The firm's t ...