Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) is positioned favorably in the semiconductor industry, with a significant market share and growing demand for chips, particularly driven by artificial intelligence [1][2]. Company Overview - TSMC controls two-thirds of the foundry market, indicating its dominance in the semiconductor manufacturing sector [1]. - The company has a strong client base, including major players like Nvidia, AMD, Qualcomm, and Apple, which enhances its market position [3]. Stock Performance - Despite TSMC's robust business fundamentals, its stock price has dropped by 35% since January [2]. - The decline in stock price is viewed as a potential buying opportunity rather than a long-term decline, given TSMC's industry leadership [2]. Market Dynamics - Geopolitical tensions with China pose risks to TSMC, with concerns about potential invasions and tariffs affecting the company [4]. - TSMC's foundry market share increased by over 2 percentage points to 67% between Q3 and Q4 of 2024, reflecting its growing market strength [5]. Strategic Partnerships - TSMC has entered a joint venture with Intel, which diversifies its manufacturing base and mitigates geopolitical risks while addressing competition [6]. Financial Performance - TSMC reported a revenue of $90 billion in 2024, a 34% increase from the previous year, with a gross margin of 56% [7]. - Comprehensive income rose by 50% year-over-year, exceeding $39 billion [8]. Capital Expenditure - The company invested nearly $30 billion in property and equipment in 2024, maintaining a high level of capital expenditure to meet rising demand [9]. Valuation Metrics - TSMC's price-to-earnings (P/E) ratio has decreased from over 30 in January to 21, with a forward P/E ratio of 16, indicating continued profit growth potential [10]. Investment Consideration - The current discounted valuation of TSMC stock presents an attractive buying opportunity for investors [11][13].

Now is not the time to panic. Now is the time to make rational decisions for your stock portfolio. Most of Amazon's business is not selling online goods itself, but facilitating transactions for third-party sellers. This will help it push back against tariff volatility (although it may hurt a lot of its existing sellers). If a lot of Amazon sellers go bankrupt or have to rapidly switch supply chains, that is not a cost Amazon has to shoulder. Most of its investment has been in the United States, as opposed ...

Investing in the S&P 500 index has long been a great way to take advantage of the economy's growth. But in many cases, buying and holding individual stocks has resulted in far more impressive gains. While there has been a lot of turmoil in the markets of late, a simple buy-and-hold strategy has worked incredibly well.Over the past 10 years, the S&P 500 has risen by 174% (assuming an April 1 cutoff). But during that same time frame, chipmaker Nvidia (NVDA -1.64%) has produced gains of nearly 21,000% for inve ...

Core Insights - Retail investors have a significant opportunity to align with wealthy money managers, as many billionaires are currently investing in Amazon [1][2] - A notable group of nine billionaires, including Warren Buffett, have disclosed positions in Amazon, collectively holding investments worth approximately $8.5 billion [3][4] Business Operations - Amazon operates three major business segments: its online marketplace, advertising services, and Amazon Web Services (AWS) [5] - The online marketplace generated $247 billion in sales last year, with third-party seller services contributing $156 billion and subscription revenue from Prime adding $44 billion [8] - The advertising business generated $56 billion last year and is one of Amazon's fastest-growing revenue sources [9] - AWS generated $108 billion in revenue last year, benefiting from increased spending on artificial intelligence [10] Financial Performance - Amazon has been improving its operating margins through investments in logistics and has produced substantial free cash flow, allowing for reinvestment in growth opportunities [11] - The stock has seen a decline of over 25% from its all-time high earlier this year, presenting a potential buying opportunity for investors [16] Market Position - Despite rising global trade tensions, Amazon is well-positioned to gain market share by offering superior service and pricing [12][13] - The company is investing over $100 billion in capital expenses to capitalize on the growing AI market and is developing its own AI technologies [14] - The demand for AWS services is expected to remain strong, as businesses may increase AI investments to mitigate the impact of tariffs [15]

Core Viewpoint - Intel is showing signs of recovery despite a challenging market environment, with a notable increase in its stock price while major indices decline [1] Group 1: Market Performance - In the first quarter of 2025, the S&P 500 lost 4.6% and the Nasdaq Composite lost 10.4%, while Intel's shares increased by 13.3% [1] Group 2: Strategic Developments - Intel and Taiwan Semiconductor Manufacturing Company (TSMC) have reportedly reached an agreement for TSMC to take a 20% stake in a new organization that will operate Intel's semiconductor manufacturing facilities [2] - This collaboration is expected to revitalize Intel's struggling foundry business by leveraging TSMC's technical expertise and transforming Intel's management culture [3] Group 3: Leadership Changes - Intel's new CEO, Lip-Bu Tan, is implementing significant changes, including a shift in the company's approach to AI and staff reductions to address inefficiencies in management [4] Group 4: Trade Challenges - Ongoing trade tensions, particularly with China, pose a significant threat to Intel's business, as tariffs could hinder its ability to sell competitively in the Chinese market [5]

Nvidia (NVDA 3.38%) has been one of the hottest stocks in the market since 2023 but has cooled alongside all of the other growth stocks during the latest sell-off. Nvidia has been a top stock because of its involvement in the artificial intelligence (AI) race since its products power much of the training and inference for that technology.However, the stock recently was now down more than 30% from its all-time high, due to the impact of President Donald Trump's tariff announcement. But is Nvidia truly affect ...

Core Viewpoint - The current market downturn presents buying opportunities for investors in tech stocks, particularly ASML, TSMC, and Supermicro, despite the challenges posed by tariffs and geopolitical tensions [1][2]. Group 1: ASML - ASML is the leading producer of lithography systems essential for chip manufacturing, particularly the only supplier of extreme ultraviolet (EUV) systems [3][4]. - The stock has declined nearly 40% over the past year due to export curbs and tariffs, but the exclusion of semiconductors from tariffs and growth in the AI market are expected to support its EUV business [4][5]. - Analysts project ASML's revenue and earnings per share (EPS) to grow at a compound annual growth rate (CAGR) of 12% and 22% from 2024 to 2027, respectively, making its stock appear historically cheap at 20 times next year's earnings [5][6]. Group 2: Taiwan Semiconductor Manufacturing (TSMC) - TSMC is the largest contract chipmaker globally, producing chips for major companies like Apple and Nvidia, with operations in multiple countries [7]. - The stock has seen a 3% increase over the past year but has dropped 27% year to date due to tariffs and geopolitical tensions, although a $165 billion investment in U.S. fabs over the next four years may mitigate these impacts [8][9]. - Analysts expect TSMC's revenue and EPS to grow at a CAGR of 22% and 24% from 2024 to 2027, driven largely by the AI market expansion, with the stock trading at 13 times next year's earnings [9]. Group 3: Supermicro - Supermicro specializes in building servers for data centers, focusing on dedicated AI servers, and has a strong partnership with Nvidia for GPU access [10][11]. - The stock has plummeted nearly 70% over the past year due to various setbacks, including allegations of inflated revenue and regulatory scrutiny, but has recently made improvements by hiring a new auditor and submitting its 10-K filing [11][12]. - Analysts forecast Supermicro's revenue and EPS to grow at a CAGR of 38% and 22% from 2024 to 2027, respectively, with the stock trading at 9 times next year's earnings, indicating potential for a higher valuation if the company stabilizes and expands its U.S. manufacturing [12].

Core Viewpoint - Micron Technology and Marvell Technology are both positioned to benefit from the AI infrastructure boom, but they operate in different segments of the semiconductor market, with Micron focusing on memory technologies and Marvell on custom silicon and data center connectivity [1][2]. Group 1: Micron Technology - Micron is experiencing strong demand for high-bandwidth memory (HBM) and DRAM products due to the surge in AI workloads, with its HBM3E products noted for their power efficiency and bandwidth [3]. - In January 2025, NVIDIA announced Micron as a key supplier for its GeForce RTX 50 Blackwell GPUs, reinforcing Micron's role in the HBM market [4]. - Micron's second quarter of fiscal 2025 saw a decline in non-GAAP gross margin to 37.9%, down from 39.5% in the previous quarter, attributed to weaker NAND flash pricing and startup costs at a new DRAM facility [5]. - For the third quarter, Micron guided a gross margin of 36.5%, indicating ongoing margin pressures despite record sales in its HBM segment [6]. - The Zacks Consensus Estimate for Micron's 2025 sales and EPS suggests year-over-year growth of 41.9% and 426.9%, respectively, but EPS estimates have been volatile over the past 60 days [16]. Group 2: Marvell Technology - Marvell is capitalizing on the increasing demand for custom silicon from hyperscalers, exceeding its fiscal 2025 AI revenue target of $1.5 billion and expecting to surpass $2.5 billion in fiscal 2026 [7]. - The company reported a 27% year-over-year increase in total revenues and a 30% rise in non-GAAP EPS for the fourth quarter of fiscal 2025 [8]. - Marvell's non-GAAP gross margin has remained above 60% for several years, with a forecast of 60% for the first quarter of fiscal 2026, indicating strong operational efficiency [11]. - The Zacks Consensus Estimate for Marvell's 2026 sales and EPS implies a year-over-year increase of 43.8% and 75.8%, respectively, with consistent upward revisions over the past 60 days [20]. Group 3: Stock Performance and Valuation - Over the past year, Micron shares have decreased by 47.4%, compared to a 31.3% decline in Marvell shares [13]. - Micron is trading at a forward earnings multiple of 1.71X, significantly below its three-year median of 3.22X, while Marvell's forward sales multiple is at 4.99X, lower than its median of 8.20X [14]. - Marvell's premium valuation reflects high growth expectations and robust profitability, while Micron's declining profitability raises concerns about its ability to leverage the AI market [15].

There is one name synonymous with the artificial intelligence (AI) revolution in the computer and technology sector. NVIDIA Corp. NASDAQ: NVDA commands over 92% of the graphic processing unit (GPU) market, making it the leading company benefiting from the surge in AI infrastructure demand. Their AI chips are in such demand that their next-generation Blackwell GPUs are already sold out for the next 12 months. They are essential tools for cutting-edge AI, machine learning (ML) and high-performance computing ( ...

"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful." -- Warren BuffettBrutal stock market sell-offs can create lucrative opportunities for investors with clear minds and steady hearts. Dividend stocks can be particularly attractive investments in bear markets, as the passive income they produce can help to offset share price declines.The cash you receive can also make it easier to wait for an eventual rebound -- and give you more dry po ...