Nvidia was the first chip stock to reach a trillion-dollar market cap, but another could reach that milestone very soon.As it stands today, there are only seven companies in the world with market capitalizations in excess of $1 trillion. This exclusive club includes six of the  "Magnificent Seven" -- Microsoft, Apple, Nvidia, Alphabet, Amazon, and Meta Platforms.Nvidia is the only pure-play semiconductor and data center services business with a trillion-dollar valuation right now. But as Advanced Micro Devi ...

Group 1: Taiwan Semiconductor Manufacturing (TSMC) - TSMC is a leading chip foundry with a net profit of nearly $27 billion on $69 billion of revenue last year, reflecting a strong competitive position [2] - The company is experiencing a 5% revenue decline in Q1 compared to Q4, primarily due to weak end-market demand, although AI chip demand remains strong [2][3] - TSMC's earnings per share are projected to grow at an annualized rate of 22% over the next several years, supported by the demand for Nvidia's GPUs and a potential recovery in other markets [3] Group 2: Uber Technologies - Uber has over 7 million drivers and couriers, with double-digit growth in trips, monthly active customers, and revenue, indicating strong demand in its mobility business [4] - The number of trips grew by 21% year over year in Q1, and the company is expanding its platform to include more restaurants and grocery deliveries while managing costs [4] - Wall Street projects Uber's earnings to grow at an annualized rate of 45%, with an EPS estimate of $4.30 by 2026, suggesting significant upside potential for investors [5]

Company Performance - TSMC's stock closed at $160, with a daily increase of +1.85%, outperforming the S&P 500's gain of 0.7% [1] - Over the past month, TSMC's stock has risen by 15.02%, surpassing the Computer and Technology sector's increase of 8.26% and the S&P 500's increase of 4.03% [1] - The upcoming financial results are expected to show an EPS of $1.33, reflecting a 16.67% increase year-over-year, and revenue of $19.92 billion, up 27.06% from the previous year [1] Full Year Estimates - Analysts project TSMC's earnings for the full year to be $6.13 per share and revenue of $84.56 billion, indicating increases of +18.34% and +22.03% respectively from last year [2] - Recent changes in analyst estimates suggest a positive outlook for TSMC's business and profitability [2] Valuation Metrics - TSMC has a Forward P/E ratio of 25.64, which aligns with the industry average [3] - The company also has a PEG ratio of 1.13, consistent with the average PEG ratio of the Semiconductor - Circuit Foundry industry [3] Industry Context - The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector and holds a Zacks Industry Rank of 95, placing it in the top 38% of over 250 industries [4] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]

Concerns about a slowdown in Taiwan Semiconductor Manufacturing’s (NYSE:TSM) chip business is now a distant memory. Following the blowout earnings report by Nvidia (NASDAQ:NVDA) Taiwan Semiconductor stock is a buy for sure.Super Micro Computer (NASDAQ:SMCI) missed analyst forecasts in its own earnings report last month and sent the industry tumbling. Nvidia’s results solidify the foundry’s strong momentum.Taiwan Semiconductor Stock and NVDAYou can’t discuss TSM’s business without including how Nvidia is per ...

Core Insights - The article discusses the investment positions of Parkev Tatevosian, CFA, and mentions that The Motley Fool has positions in and recommends Nvidia and Taiwan Semiconductor Manufacturing [1] Group 1 - Parkev Tatevosian has no position in any of the stocks mentioned [1] - The Motley Fool has positions in Nvidia and Taiwan Semiconductor Manufacturing, indicating a positive outlook on these companies [1] - The Motley Fool has a disclosure policy regarding its investment positions [1]

There is no stopping Taiwan Semiconductor Manufacturing (NYSE:TSM). The world’s largest pure play semiconductor foundry really has too much demand for its capacity and will be flush with growth for years to come. Despite the excess of good fortune showering down on Taiwan Semiconductor stock, shares are not overvalued. TSM stock is undervalued, with a price-to-earnings ratio of 20 and a sales multiple of less than 2. With sales growing at 16.5% CAGR and earnings at 18% CAGR, this is a discounted stock. Wall ...

Financial Review and Compliance - The consolidated financial statements for the three months ended March 31, 2024, and 2023 were reviewed, showing no significant discrepancies in financial presentation [6]. - The company reported a consolidated financial performance in accordance with International Accounting Standard 34, ensuring compliance with local regulations [6]. - The review was conducted under the Standards on Review Engagements of the Republic of China, focusing on financial and accounting inquiries [5]. - The engagement partners for the review were Shih Tsung Wu and Shang Chih Lin from Deloitte & Touche [7]. - The financial statements are presented in thousands of New Taiwan Dollars, adhering to local accounting principles [10]. - The review confirmed that the financial statements fairly represent the company's consolidated financial position as of March 31, 2024, and 2023 [6]. - The company’s cash flows for the three months ended March 31, 2024, were also reviewed and found to be in compliance with applicable standards [6]. - The independent auditors' review report was translated into English for reader convenience, maintaining the integrity of the original Chinese version [8]. - The financial statements are intended to reflect the company's financial performance and position in the Republic of China context [8]. - The review process is less comprehensive than an audit, which limits the assurance level regarding the identification of significant matters [5]. Financial Position and Performance - Total assets increased to $5,787,891,082, up 4.6% from $5,532,371,215 as of December 31, 2023 [11]. - Current assets rose to $2,452,767,394, representing 42% of total assets, compared to 40% in the previous quarter [11]. - Cash and cash equivalents increased by 15.9% to $1,698,195,704 from $1,465,427,753 [11]. - Total liabilities amounted to $2,122,174,828, remaining stable at 37% of total assets [11]. - Equity attributable to shareholders of the parent reached $3,635,731,930, accounting for 63% of total equity [11]. - Unappropriated earnings grew to $2,955,395,983, maintaining a 51% share of total equity [11]. - Noncurrent liabilities decreased slightly to $1,095,994,749, representing 19% of total liabilities [11]. - Inventories increased to $267,123,339, reflecting a 6.4% rise from $250,997,088 [11]. - Accounts payable rose to $56,424,812, a 1.3% increase from $55,726,757 [11]. - Total current liabilities increased to $1,026,180,079, up 12.3% from $913,583,316 [11]. Revenue and Income - Net revenue for the three months ended March 31, 2024, was $592.64 million, a 16.5% increase from $508.63 million in the same period of 2023 [14]. - Gross profit for the same period was $314.51 million, representing a gross margin of 53%, compared to 56% in the previous year [14]. - Operating expenses totaled $65.36 million, maintaining 11% of net revenue, consistent with the previous year [14]. - Income from operations was $249.02 million, accounting for 42% of net revenue, down from 45% in the prior year [14]. - Net income for the three months was $225.22 million, an 8.8% increase from $206.95 million in the same period last year [14]. - Total comprehensive income for the period was $266.50 million, reflecting a 30.8% increase from $203.65 million in the previous year [16]. - Basic and diluted earnings per share were both NT$8.70, up from NT$7.98 in the same period of 2023 [16]. - The company reported a foreign exchange gain of $3.20 million, compared to a loss of $44,363 in the previous year [14]. - Research and development expenses were $46.11 million, representing 8% of net revenue, consistent with the previous year [14]. Cash Flow and Investments - Cash generated from operations in Q1 2024 was NT$437,362,333, up from NT$385,931,234 in Q1 2023, reflecting a growth of 13.4% [22]. - Net cash generated by operating activities for Q1 2024 was NT$436,311,108, compared to NT$385,244,745 in Q1 2023, indicating an increase of 13.3% [22]. - Net cash used in investing activities for Q1 2024 was NT$159,806,991, a decrease from NT$272,231,795 in Q1 2023, showing a reduction of 41.2% [23]. - Net cash used in financing activities for Q1 2024 was NT$71,685,617, compared to NT$64,487,030 in Q1 2023, representing an increase of 11.0% [23]. - Cash and cash equivalents at the end of Q1 2024 totaled NT$1,698,195,704, up from NT$1,385,232,810 at the end of Q1 2023, marking an increase of 22.6% [26]. Shareholder Returns and Dividends - Cash dividends to shareholders amounted to $90,762,248, reflecting a commitment to return value to shareholders despite fluctuations in net income [18]. - TSMC's cash dividends per share for Q1 2024 are set at NT$4.00, an increase from NT$3.00 in Q1 2023 [87]. - The total cash dividends to shareholders for Q1 2024 amount to $103,734,517, compared to $77,796,213 in Q1 2023 [87]. Debt and Liabilities - Total liabilities as of March 31, 2024, were $1,009,462,421, up from $895,457,426 as of March 31, 2023, representing an increase of approximately 12.7% [128]. - The company's total financial liabilities as of March 31, 2024, were $1,774,692,676, slightly up from $1,768,812,131 as of December 31, 2023, indicating a marginal increase of about 0.3% [129]. - Bonds payable amounted to $1,186,624,225 as of March 31, 2024, with $28,846,265 due in less than 1 year [144]. - Long-term bank loans and lease liabilities combined total $12,830,932 and $34,483,988 respectively as of March 31, 2024 [144]. Investments and Marketable Securities - TSMC holds marketable securities valued at approximately NT$6,951,320,000 in commercial paper from Cathay Financial Holding Co., Ltd. [193]. - The fair value of TSMC's investment in ARM Holdings plc is approximately US$138,837,000 [193]. - TSMC's investment in commercial paper from various companies includes significant holdings in Bank of America Corporation and Morgan Stanley, with fair values of US$88,527,000 and US$82,268,000 respectively [193]. - The total carrying value of TSMC's marketable securities reflects a diverse investment strategy across multiple sectors [197]. Risk Management and Financial Instruments - The company manages liquidity risk by maintaining adequate cash and cash equivalents, ensuring sufficient funding to support operations over the next 12 months [143]. - Interest rate futures contracts with a contract amount of US$62,700 thousand were entered into to hedge against interest rate fluctuations, maturing in June 2024 [48]. - The effect of hedging instruments for the three months ended March 31, 2024 resulted in a change of $793,830 for net investments in foreign operations [55]. Employee Compensation and Benefits - The company recognized share-based payment expenses of $161.85 million during the period [90]. - TSMC's total liabilities under cash-settled share-based payment arrangements as of March 31, 2024, amounted to NT$82,942 thousand, compared to NT$23,379 thousand as of March 31, 2023 [119]. - The profit-sharing bonus to employees for the three months ended March 31, 2024, was $13,472,869, up from $12,363,840 in the same period of 2023, indicating an increase of approximately 9% [121].

Group 1 - Taiwan Semiconductor Manufacturing Co. (TSMC) reported a 59.6% increase in April sales year-over-year, reaching approximately 236 billion New Taiwan dollars ($7.3 billion), with a 20.9% rise from March [1][2] - For the year through April, TSMC's revenue totaled TWD 828.7 billion, reflecting a 26.2% increase compared to 2023 [2] - TSMC's American depositary receipts (ADRs) traded near their all-time high, rising 5% to $149.96, and have increased 44% this year, peaking at $158.40 on March 8 [3] Group 2 - TSMC supplies over half of the world's chips, including to major tech companies like Apple and Nvidia [2] - The U.S. Commerce Department announced a $6.6 billion grant and up to $5 billion in low-cost loans to TSMC for building a second manufacturing plant in Arizona, with TSMC planning to increase its investment to over $65 billion and construct a third plant in the state [2] - U.S. Commerce Secretary Gina Raimondo highlighted the economic implications of a potential Chinese invasion of Taiwan, stating that the seizure of TSMC would be "absolutely devastating" to the U.S. economy, as the U.S. relies on TSMC for 92% of its leading-edge semiconductors [2]

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Group 1: Company Performance - Taiwan Semiconductor Manufacturing Company Limited (TSM) reported a revenue increase of 59.6% year-over-year, reaching NT$236.02 billion in April 2024, driven by demand from major clients like Apple, Nvidia, and AMD [1] - Despite previous caution from CEO C. C. Wei regarding the semiconductor market's growth in 2024, TSM remains optimistic about future expansion, particularly in the foundry sector due to rising AI semiconductor demand [1] - TSM announced a cash dividend of NT$4 per share for the first quarter of 2024, reflecting its commitment to shareholders [1] Group 2: Stock Performance and Technical Analysis - TSM's stock has faced volatility typical of the semiconductor industry, previously falling to $40 during the COVID bear market and rising above $140 by February 2021, but struggling to surpass the $145 mark [2] - The stock attempted to break the $145 barrier in January 2022 and reached a high of $158.4 earlier this year, but retreated shortly after; a sustained close above $145 for a week is necessary for a potential uptrend [5] - Currently, TSM's stock is trading within a $125-$145 range, which is being tested again [6]