Many investors still hold high regard for the technology sector in the United States today, which makes sense as the services PMI index is carrying most—if not all—of the economic growth left in the country, compared to the 23-month contraction in the manufacturing sector, as seen in that PMI index. However, not all technology sectors are equal.Taiwan Semiconductor Manufacturing TodayTSMTaiwan Semiconductor Manufacturing$211.82 +24.34 (+12.98%) 52-Week Range$84.95▼$212.30Dividend Yield0.92%P/E Ratio37.89Pri ...

Taiwan Semiconductor (NYSE:TSM) stock is driving the chip sector higher today, and near the top of the Nasdaq-100 Index (NDX). The semiconductor company reported third-quarter profit that topped analyst estimates. Taiwan Semiconductor also expects annual revenue growth in the last three months of the year, with artificial intelligence (AI) driving demand. The shares are up 20% to trade at $207.94, on track for their best single-session gain since May 2023. TSM -- a Schaeffer's Top Pick for 2024 -- earlier h ...

Thursday, October 17th, 2024The biggest day of economic reports has begun, with numbers feeding Q3 GDP accounts yet to come. The only people disappointed this morning will be people who are looking for an economic downturn in the United States. It ain’t happening.Off new closing highs, the Dow is up another +58 points at this hour. The S&P 500, nearing an all-time closing high of its own yesterday, is up another +25 points. The Nasdaq, having lagged the other industries over the past couple trading sessions ...

Philippe Laffont's hedge fund, Coatue Management, has been scooping up shares of Taiwan Semiconductor for several consecutive quarters.Billionaire investor Philippe Laffont is the founder of Coatue Management, one of Wall Street's most prestigious hedge funds. Below, I'm going to explore some of the more interesting moves Coatue has made as of late as it pertains to the firm's artificial intelligence (AI) positions.To locate this information, I've reviewed the firm's Form 13F form. It's an incredibly useful ...

Taiwan Semiconductor Manufacturing reported strong demand for AI chips.In today's video, I discuss Taiwan Semiconductor Manufacturing (TSM 11.32%) and why Nvidia (NVDA 2.82%) stock investors should pay attention. To learn more, check out the short video, consider subscribing, and click the special offer link below.*Stock prices used were the pre-market prices of Oct. 17, 2024. The video was published on Oct. 17, 2024. ...

TSMC (NYSE: TSM ) has rallied 13% since our last coverage, narrowing the gap toward our target price of $210. Following its Q3 2024 earnings, which showed substantial year-over-year (YoY) revenue and profit growth, we believe TSMC’s long-term prospectsYiannis Zourmpanos, founder of Yiazou IQ, an AI-driven stock research platform providing all-in-one stock reports. Experience: Previously worked at Deloitte and KPMG in external/internal auditing and consulting. Education: Chartered Certified Accountant, Fello ...

Technology stocks, specifically chipmakers, could lead from the front on Thursday as a stellar third-quarter earnings report from Taiwan Semiconductor Manufacturing Company Ltd. TSM is triggering positive sentiment toward all artificial intelligence plays. Oil prices have rebounded and gold traded at a fresh record, while bond yields held steady ahead of a slew of market-moving data that include retail sales, a regional manufacturing activity index, industrial production, and jobless claims.Earnings news co ...

KEY TAKEAWAYSU.S.-listed Taiwan Semiconductor Manufacturing Co. shares are jumping 8% in premarket trading after the chipmaker posted a quarterly earnings surge and projected a buoyant outlook on the back of the artificial intelligence (AI) boom.The company, which supplies tech heavyweights such as Apple and Nvidia, reported a better-than-expected 54% year-over-year rise in third-quarter net income of 325.3 billion New Taiwan dollars ($10.12 billion).TSMC also reported a 39% jump in revenue to NT$759.69 bil ...

Financial Data and Key Metrics - Q3 2024 revenue increased 12.8% sequentially in NT, driven by strong smartphone and AI-related demand for 3nm and 5nm technologies [4] - Gross margin increased by 4.6 percentage points sequentially to 57.8%, reflecting higher capacity utilization and cost improvements [4] - Operating margin increased by 5 percentage points sequentially to 47.5%, with EPS at 12.54 NT and ROE at 33.4% [5] - Cash and marketable securities stood at 2.2 trillion NT ($69 billion USD) at the end of Q3 2024 [6] - Q4 2024 revenue guidance is between $26.1 billion and $26.9 billion USD, representing a 13% sequential increase or 35% YoY increase at the midpoint [7] Business Line Data and Key Metrics - 3nm process technology contributed 20% of wafer revenue in Q3, while 5nm and 7nm accounted for 32% and 17% respectively [5] - Advanced technologies (7nm and below) accounted for 69% of wafer revenue [5] - HPC revenue increased 11% QoQ to account for 51% of Q3 revenue, while smartphone revenue increased 16% to account for 34% [5] - IoT revenue increased 35% to account for 7%, and automotive revenue increased 6% to account for 5% [5] Market Data and Key Metrics - AI-related demand, particularly for server AI processors, is expected to more than triple in 2024, accounting for mid-teens percentage of total revenue [11] - The company forecasts four-year revenue to increase by close to 30% in USD terms [11] - Overseas fabs in Arizona and Japan are progressing well, with volume production expected to start in 2025 and 2027 respectively [12][13][14] Company Strategy and Industry Competition - TSMC plans to invest slightly over $30 billion USD in 2024 CapEx, with 70%-80% allocated for advanced process technologies [9] - The company is leveraging its manufacturing technology leadership and large-scale manufacturing base to remain cost-effective in a fragmented globalization environment [15] - TSMC is expanding its global manufacturing footprint, with fabs in Arizona, Japan, and Germany, to meet customer needs and maximize shareholder value [12][13][14] Management Commentary on Operating Environment and Future Outlook - Management views AI demand as real and sustainable, driven by tangible ROI benefits from AI applications in productivity and efficiency [20][21] - The company expects strong demand for leading-edge process technologies to continue into Q4 2024 and beyond [10][11] - TSMC is confident in its ability to deliver the same level of manufacturing quality and reliability from overseas fabs as from its fabs in Taiwan [12][13] Other Important Information - Inventory days increased by four days to 87 days due to the pre-build of N3 and N5 wafers [6] - Electricity prices in Taiwan have risen significantly, with a 14% increase in October 2024, impacting gross margin by at least 1% [34] - Advanced packaging is expected to grow faster than the corporate average, accounting for high single-digit revenue in 2024 [75] Q&A Session Summary Question: AI Demand and Semiconductor Cycle - Management believes AI demand is real and sustainable, driven by productivity gains and efficiency improvements [20][21] - The semiconductor cycle is expected to continue growing, with AI demand just beginning and expected to last for many years [24][25] Question: CapEx Growth - TSMC expects 2025 CapEx to be higher than 2024, driven by strong growth opportunities and healthy demand [28] Question: Gross Margin Outlook for 2025 - Factors impacting 2025 gross margin include reduced dilution from N3 ramp, higher electricity prices, and preparation costs for N2 [33][34] Question: Pricing Strategy and Antitrust Concerns - TSMC views its customers and suppliers as partners and does not see antitrust concerns due to its market share [44][45][48] Question: IDM Outsourcing Opportunities - TSMC is not interested in acquiring IDM fabs but continues to receive business from IDMs, including Intel [53] Question: Long-Term Growth Outlook - TSMC expects healthy growth over the next five years, driven by strong AI demand and advanced technologies [57][62] Question: Power Challenges and Nuclear Power - TSMC is working closely with the Taiwanese government to ensure sufficient electricity, water, and land for its fabs, but has not yet considered nuclear power [68] Question: PC and Mobile Demand - PC and smartphone demand is expected to grow at a low single-digit rate, with AI-related content driving silicon area growth [72] Question: Advanced Packaging Growth - Advanced packaging is expected to grow faster than the corporate average, with margins approaching but not yet at corporate levels [75] Question: Dividend Policy and Capital Allocation - TSMC's dividend policy is sustainable and steadily increasing, with a focus on organic growth and shareholder returns [78][79] Question: Foundry 2.0 Model - Advanced packaging and leading process nodes are expected to drive stronger growth within the Foundry 2.0 model [82] Question: Global Semiconductor Revenue Forecast - TSMC's forecast for global semiconductor revenue remains unchanged, with growth expected to be around 10% [86] Question: CoWoS Capacity Build - CoWoS capacity is being aggressively expanded, but customer demand still exceeds supply [91]

Taiwan Semiconductor Manufacturing Company just reported a 54% rise in third-quarter net profit.TSMC's growth was driven by strong demand for artificial intelligence technology.But the market is questioning whether the euphoria over AI and AI chips is sustainable. 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 your favorite topics in a persona ...