Core Insights - Taiwan Semiconductor Manufacturing Company (TSMC) stock is currently viewed as attractive from a valuation perspective, trading at a forward 12-month price-to-earnings (P/E) multiple of 24.31, which is lower than the sector average of 28.53 [1][4] - TSMC is a leader in the global chip foundry market, benefiting significantly from the AI boom, with major clients like NVIDIA, Marvell, and Broadcom relying on TSMC for advanced chip manufacturing [5][6] - The company is aggressively investing in capital expenditures, planning to spend between $40 billion and $42 billion in 2025, primarily focused on advanced manufacturing processes [7] - TSMC's revenues surged 41% year-over-year to $33.1 billion in Q3 2025, driven by strong demand for its 3nm and 5nm chips, which now account for 60% of total wafer sales [8][9] - The company raised its revenue growth guidance for full-year 2025 to a mid-30% range, reflecting strong demand for its advanced chips [10] - Technical indicators suggest a bullish trend for TSMC, with shares trading above their 50-day and 200-day moving averages [11][14] Financial Performance - TSMC's earnings per share (EPS) increased by 39% to $2.92, supported by the demand for advanced nodes [9] - Gross margins improved by 170 basis points to 59.5%, indicating better cost efficiencies [9] - The Zacks Consensus Estimate for fourth-quarter and full-year 2025 revenues is $32.6 billion and $120.47 billion, respectively, showing year-over-year growth of 21.3% and 33.7% [10] Investment Considerations - Despite its strengths, TSMC faces near-term challenges, including softness in key markets like PCs and smartphones, which are projected to see only low single-digit growth in 2025 [17] - The company's global expansion strategy, including new fabs in the U.S., Japan, and Germany, is expected to impact gross margins negatively by 2-3 percentage points annually over the next three to five years [18] - Geopolitical tensions, particularly U.S.-China relations, pose strategic risks for TSMC, given its significant revenue exposure to China [19] - Overall, TSMC is considered a cornerstone of the semiconductor industry, with strong long-term growth prospects, but short-term headwinds warrant a cautious approach [20][21]

AI infrastructure spending is set to soar once again next year, and this stock is going to win big from that trend.Artificial intelligence (AI) stocks may have been under pressure lately due to concerns about a potential bubble, but there is no denying that this technology is gaining widespread adoption across various sectors.From robots in factories to automated ad campaigns to supply chain management to healthcare, AI is touching several industries in a positive way. That's why big tech giants, neocloud c ...

Cadence Design Systems (NasdaqGS:CDNS) 2025 Conference December 02, 2025 04:15 PM ET Company ParticipantsAnirudh Devgan - CEOConference Call ParticipantsNatalie Winkler - Equity Research AnalystNatalie WinklerHi everybody, my name is Natalie Winkler. I'm a semiconductor analyst here at UBS. I'm very excited to have Anirudh Devgan with us, CEO of Cadence Design Systems. Before we start, I want to read a quick forward-looking statement.Anirudh DevganThese are big chairs, you know.Natalie WinklerToday's discus ...

Parkev Tatevosian, CFA has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and 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. ...

TSMC is set to be a huge beneficiary of the ongoing surge in AI data center demand.The artificial intelligence (AI) infrastructure market is booming, with demand for AI data centers surging. Chip designer Nvidia (NVDA +1.65%) has predicted that AI data center capital expenditures (capex) could grow at a 40% compound annual growth rate (CAGR) over the next five years to between $3 trillion to $4 trillion by 2030. Given the current market trends, that doesn't seem like a stretch. Right now, the big three clou ...

Taiwanese prosecutors charged Tokyo Electron for failing to prevent staff from allegedly stealing TSMC trade secrets https://t.co/dBEKhFop5u ...

One analyst expects Apple to become a major customer of Intel's foundry services.While nothing is official or guaranteed, Intel (INTC 1.36%) may be on track to win Apple (AAPL +1.52%) as a major foundry customer. In a recent post on X, Analyst Ming-Chi Kuo noted that visibility around Intel becoming an advanced node supplier had "improved significantly."According to Kuo, Apple's experience with an early process design kit (PDK) for Intel's 18A-P process, an enhanced version of its Intel 18A process, has met ...

Taiwan prosecutors said on Tuesday they had charged Tokyo Electron's Taiwan unit with violating the National Security Act and the Trade Secrets Act after a former employee was indicted for stealing tr... ...

December 1, 2025 05:27 AM GMT Semiconductors | North America Asia trip takeaways highlight AI strength testing the limits of semiconductor ecosystem | What's Changed | | | | --- | --- | --- | | Broadcom Inc. (AVGO.O) | From | To | | Price Target | $409.00 | $443.00 | | NVIDIA Corp. (NVDA.O) | | | | Price Target | $235.00 | $250.00 | Focus is AI strength across the board; we raise estimates on AVGO but importantly also for NVDA, as we see both ramping materially next year. We also focus on memory strength an ...

It's no secret that I'm a huge Nvidia fan from an investment standpoint. However, there's one stock that I think is a better pick in the artificial intelligence (AI) realm than Nvidia: Taiwan Semiconductor (TSM +0.54%). Personally, I don't think that Taiwan Semiconductor will outperform Nvidia over the next few years. However, it offers one important quality: Diversification.I think this makes Taiwan Semiconductor a better investment than Nvidia, and it gives investors some safety when it comes to investing ...