Core Insights - The article discusses investment opportunities in artificial intelligence (AI) stocks, specifically highlighting Broadcom and Taiwan Semiconductor Manufacturing Company (TSMC) as strong candidates for investment in the upcoming year. Group 1: Broadcom - Broadcom has established itself as a significant player in the AI sector, particularly in data center networking components [2] - The company's primary growth opportunity lies in ASICs (application-specific integrated circuits), which are custom chips designed for specific tasks, as companies seek to optimize AI infrastructure spending [3] - Broadcom's partnerships with major companies like Alphabet, Meta Platforms, and ByteDance could lead to a projected revenue opportunity of $60 billion to $90 billion by fiscal 2027 [4] - A recent partnership with OpenAI aims to develop 10 gigawatts of custom AI chips and networking components by 2029, potentially translating into a $100 billion annual market opportunity [5] - Broadcom has also secured a $10 billion AI chip order from an unnamed fourth customer, possibly indicating advanced custom AI chip designs in collaboration with Apple [6] - With multiple customers leveraging Broadcom for custom AI chip development, the company is poised for strong growth in the coming years [7] Group 2: Taiwan Semiconductor Manufacturing Company (TSMC) - TSMC is a critical player in the AI industry, providing manufacturing services for advanced chips designed by companies like Broadcom and Nvidia [8] - The company excels in producing chips at the smallest node sizes with high yields, which is essential for meeting the demands of AI infrastructure [8] - Both Broadcom and TSMC are positioned to benefit from the increasing spending on AI infrastructure, with Broadcom focusing on custom AI chips and TSMC serving as the primary manufacturing partner for advanced chip designs [9]

Investment Ratings - The report maintains a Buy rating on Aspeed, MPI, and a Neutral rating on WT Micro [2][3][4]. Core Insights - The semiconductor industry is experiencing significant growth driven by the rise of AI ASICs, which is positively impacting companies like Aspeed, MPI, and WT Micro [1][2][3]. - Price objectives (PO) for Aspeed, MPI, and WT Micro have been raised due to improved earnings outlooks and market dynamics [1][8][10]. Summary by Company Aspeed - Aspeed is expected to benefit from a favorable capex efficiency due to the rise of ASIC-based AI servers, leading to a long-term optimistic outlook [2]. - The company’s 2025/26/27E EPS estimates have been raised by 6%/7%/15% respectively, with a new price objective of NT$5,300 [2][12]. MPI - MPI's growth is anticipated to be driven by AI ASICs, with an expected increase in pin count and robust growth momentum [3]. - The 2025/26/27E EPS estimates have been increased by 5%/16%/12%, and the price objective has been lifted to NT$1,000 [3][16]. WT Micro - WT Micro is expected to see improved growth post-transition to TPU, with a more positive outlook for 2H25 [4]. - The 2025/26/27E EPS estimates have been raised by 5%/9%/10%, with a new price objective of NT$135 [4][21].