If there was one semiconductor stock that I've truly regretted not adding a lot more into my personal portfolio, it has got to be Taiwan Semiconductor Manufacturing Company Limited ( TSMJR Research is an opportunistic investor. I was recognized by TipRanks as a Top Analyst, and also by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP. I identify attractive risk/reward opportunities supported by robust price action to potentially generate alpha ...

Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) is a crucial player in the AI supply chain, manufacturing chips for companies like Nvidia and AMD, and is currently trading at a discount despite impressive growth [1][2]. Company Overview - TSMC is the world's largest semiconductor foundry, known for its efficiency, scale, precision, and yield, making it the most dependable choice for companies needing chip manufacturing [3]. - The company has shifted from primarily manufacturing smartphone chips to focusing on advanced AI chips for data centers, capturing a market share in the upper 90% range for these products [4]. Financial Performance - TSMC generated $122.4 billion in revenue in 2025, marking a nearly 36% increase from 2024, and achieving its first $100 billion year [6]. - The gross margin increased from 56.1% to 59.9% in 2025, with an operating margin rise from 45.7% to 50.8%, indicating strong operational execution [7]. - In Q4, TSMC reported a gross margin of 62.3% and an operating margin of 54% [7]. Market Position and Valuation - TSMC operates a virtual monopoly on advanced AI chips, allowing it to command premium pricing for its services [8]. - Despite a 69% increase in stock price since the start of 2025, TSMC trades at only 25 times its projected earnings for the next year, which is cheaper compared to competitors like Broadcom, Intel, and Nvidia [9]. - Given TSMC's market dominance, pricing power, and growth opportunities, its current valuation appears attractive for long-term investors [11].

In this article2330-TWINTCNVDAC.C. Wei, CEO of TSMC, and Jensen Huang, CEO of Nvidia, interact on stage during TSMC’s annual sports day in Hsinchu, Taiwan, Nov. 8, 2025. Ann Wang | ReutersWhen Jensen Huang first met Morris Chang decades ago, he told the founder of Taiwan Semiconductor Manufacturing Company that one day Nvidia would be the chip foundry's biggest customer. That's a story Huang, Nvidia's CEO, was asked about on a recent podcast, and it's a promise that is on track to be realized this year. Nvi ...

Summary of Intel Corp (INTC.O) Conference Call Company Overview - **Company**: Intel Corp - **Industry**: Semiconductor - **Market Position**: Leading supplier of microprocessors for desktop PCs, notebook PCs, and servers with approximately 70% market share - **Revenue Sources**: Approximately 90% of total revenue from PC and Datacenter segments Key Points Financial Performance - **Stock Performance**: Intel's stock fell 11% after hours due to lower gross margins driven by internal CPU supply constraints [1] - **Earnings Guidance**: The March quarter is expected to be the low point for gross margins, with expectations of above-seasonal sales for the rest of the year driven by AI demand [1][2] - **Earnings Per Share (EPS)**: Revised EPS estimates for CY26 and CY27 are lowered by $0.48 and $0.17 respectively due to lower gross margins [1] - **Target Price**: Target price revised to $48, reflecting a P/E of 37x based on revised CY27 EPS [1] Market Trends - **PC Market**: Expected to decline year-over-year due to memory supply constraints, with further downward revisions anticipated for PC unit shipments in 2H26 [3] - **Server Market**: Anticipated to grow double-digit year-over-year, driven by AI and replacement demand, although Intel expects to ship below server demand throughout 2026 due to supply constraints [3] Product Developments - **ASIC Revenue**: Achieved $1.0 billion in annualized revenue from ASIC products, including the Infrastructure Processing Unit (IPU) for Google [4] - **Advanced Packaging**: Revenue opportunities from advanced packaging are now in the billions, significantly higher than previous expectations [5] Operational Insights - **Manufacturing Yields**: Intel is focused on improving yields across all nodes, with expectations to reach industry-standard yields by 2H26 [11] - **Capex**: Capital expenditures are expected to be flat to down slightly year-over-year, which is favorable for semiconductor stocks [1][12] Segment Performance - **Client Computing Group**: Revenue was $8.19 billion, down 4% quarter-over-quarter, below consensus estimates due to prioritization of data center wafers [13] - **Datacenter and AI Group**: Revenue increased by 15% quarter-over-quarter to $4.74 billion, driven by strong server demand [14] - **Intel Foundry**: Revenue was $4.51 billion, up 6% quarter-over-quarter, exceeding estimates due to a better product mix [15] - **All Other Segment**: Revenue decreased by 42% quarter-over-quarter to $574 million, but was above estimates due to higher Mobileye sales [16] Balance Sheet Highlights - **Cash Position**: Cash and short-term investments increased by $6.48 billion quarter-over-quarter, driven by operating cash flows [17] - **Inventory Management**: Inventory dollars increased slightly, but days of inventory decreased, indicating improved efficiency [18] Risks and Considerations - **Market Dependency**: Intel's revenue is highly dependent on IT spending, with potential risks from fluctuations in the PC and server markets [30] - **Competition**: Direct competition with AMD in the microprocessor market poses risks to market share and revenue estimates [31] - **Macroeconomic Factors**: Global economic conditions could impact Intel's performance, given its geographic exposure [32] Conclusion - **Investment Rating**: Maintained a Neutral rating on Intel shares, with a cautious outlook on market share loss in the core CPU market but positive sentiment towards the foundry business [28]

Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) is significantly investing to meet the growing demand for AI chips, with a planned capital expenditure of up to $56 billion, indicating strong confidence in sustained AI demand despite some caution from its CEO [2][4][5]. Company Overview - TSMC holds a dominant market share in the logic chip market, essential for AI computing, and is increasing production capacity to meet demand [2]. - The company's stock has increased over 300% since the start of the AI race in 2023, yet it is still considered undervalued compared to major tech companies [7][8]. Financial Performance - TSMC's revenue rose by 26% year over year during its last quarter, and it trades at 25 times forward earnings, which is competitive compared to the broader market [8][10]. - The company projects nearly 30% revenue growth by 2026 and expects a compound annual growth rate (CAGR) of 25% through 2029 [11]. Market Dynamics - Continued spending by AI hyperscalers on data centers is crucial for maintaining elevated demand for TSMC's chips, with projections indicating growth in data center buildouts through at least 2030 [12]. - The overall market environment shows that major tech companies trade at about 30 times forward earnings, while TSMC's growth rate is expected to accelerate, making it a potentially stronger investment [8][10].

Group 1: Company Performance and Expectations - Taiwan Semiconductor Manufacturing (TSMC) is expected to gain about 25% this year, following a solid performance with a 54% increase in 2025 [1] - The average consensus target price for TSMC is $408.50, indicating a potential 25% increase over the next 12 to 18 months [1] - TSMC's stock has gained 54% over the past year while maintaining a P/E ratio of 31, which is attractive given its growth opportunities [8] Group 2: Industry Position and Demand - TSMC is a leading foundry that manufactures semiconductors essential for various technologies, including smartphones, autonomous vehicles, and artificial intelligence (AI) [2] - Major companies like Amazon, Meta Platforms, and Alphabet are planning to increase their AI spending, which collectively amounts to several hundred billion dollars [3] - TSMC is raising its capital expenditure to meet the increasing demand for semiconductors, with management guiding for a 30% sales increase in 2026 [3] Group 3: Financial Metrics and Projections - Wall Street expects TSMC's earnings per share (EPS) to rise to $13.05 in 2026, a 23% increase from $10.65 in 2025, alongside a 31% increase in sales [10] - The highest price target for TSMC stock is $520, representing a 59% increase from the current price, with a strong likelihood of reaching this target within the next 12 to 18 months [11]

Group 1 - TSMC reported strong sales growth, with a 36% increase in 2025 revenue and a guidance for a further 30% rise in 2026, aiming for a compound annual growth rate of 25% through 2029 [3][4] - The company is highly profitable, with gross margin expanding from 59% in 2024 to 62.3% in 2025, and operating margin increasing from 49% to 54% [5][4] - TSMC benefits from strong AI tailwinds, with high-performance computing (HPC) accounting for 58% of revenue in 2025 and a growth rate of 48% year over year [7][8] Group 2 - Capital expenditures (capex) increased to $41 billion in 2025 from $30 billion in 2024, with plans to raise capex to about $54 billion in 2026, focusing on advanced process technologies [8][4] - The market is optimistic about TSMC's increased capex, as it indicates potential for higher growth [8]

Taiwan Semiconductor Manufacturing will benefit from the same tailwinds in 2026 as it did in 2025.In January 2025, I predicted that Taiwan Semiconductor Manufacturing (TSM +2.21%) would rocket higher throughout the year. That prediction ended up being dead-on, as the stock soared nearly 54% higher throughout 2025. That's an impressive one-year return for the computer chip manufacturer and it would cause some investors to hesitate on the stock, thinking it has already had its run. But I'm not ready to give u ...

A little patience could go a long way for investors.One of the most important tech companies in the world is semiconductor (chip) producer Taiwan Semiconductor Manufacturing (TSM +2.21%), or TSMC. It's the world's largest semiconductor foundry and one of the most valuable companies, with a market cap of over $1.7 trillion as of market open on Jan. 21.If TSMC's stock price momentum were to continue, it could be a stock that turns $1,000 into $16,000. It won't happen overnight or in the next year -- or even i ...

Core Insights - TSMC is positioned as a dominant player in the AI semiconductor industry, benefiting from its advanced manufacturing capabilities regardless of the competition among chip designers [2][10][15] Industry Overview - The AI semiconductor sector is entering a competitive phase, with companies like Nvidia, Broadcom, and Marvell focusing on different aspects of chip design and efficiency [3][5] - The shift from performance maximization to cost efficiency is influencing demand for general-purpose GPUs, which may face challenges in large-scale inference tasks [6][7] Company Analysis: TSMC - TSMC holds over 90% of the advanced-node market for cutting-edge AI chips, making it the primary manufacturing partner for major chipmakers [10][11] - The company reported a 21% year-over-year revenue increase to $33.7 billion in Q4 2025, with 77% of wafer revenue coming from 7-nanometer and smaller circuits [10] - Advanced nodes (3nm, 5nm, and 7nm) constitute nearly 74% of TSMC's output, reinforcing its leadership in AI chip manufacturing [11] Financial Performance - TSMC's balance sheet is strong, with over $90 billion in cash and marketable securities, and gross margins around 62% [12] - Operating margins increased by 500 basis points year-over-year to nearly 54%, indicating pricing power and operational efficiency [12][13] - The company's market valuation surpassed $1.5 trillion in early 2026, trading at a forward P/E of approximately 19x to 20x, which is considered a value play in a high-growth sector [14] Competitive Landscape - While Nvidia leads in AI computing, TSMC's manufacturing dominance provides a critical advantage that competitors struggle to match [4][15] - TSMC's ability to implement price increases on its 2nm wafers allows it to capture profits in a competitive environment [14]