According to their latest 13F filings, institutional investors made a series of notable moves in Taiwan Semiconductor (TSM), reflecting conviction around the company’s leadership in semiconductor manufacturing and its pivotal role in global technology supply chains. TSM’s dominance in advanced chip production continues to attract some of the world’s most prominent hedge funds and asset managers.Let’s examine some of the most notable changes:Appaloosa LP (David Tepper)Shares: 1,025,000Change: +755,000Value: ...

What was the structure of what they discussed. And what do we know about the status of those talks. Yeah, these are early talks.I would say there are still a few unknowns. There's no sense at this point what that investment could look like. There has definitely been some commentary this morning as people are sort of digesting this news.And you can see Intel shares are up some 12% or so since yesterday and today as they think about what this could mean for both companies, I think if you're intel in, you're l ...

Group 1 - OpenAI, Oracle, and SoftBank announced plans to build five new data centers in the U.S. as part of the $500 billion Stargate project aimed at advancing artificial intelligence capabilities [1][2] - The new data centers will be located in Shackelford County, Texas; Dona Ana County, New Mexico; and an undisclosed site in the Midwest, with two additional centers in Lordstown, Ohio, and Milam County, Texas [2] - The project is expected to create approximately 25,000 onsite jobs [2] Group 2 - The Stargate initiative aims for a total capacity approaching seven gigawatts, with over $400 billion in investments planned over the next three years, and a long-term goal of reaching 10 gigawatts [3] - OpenAI CEO Sam Altman emphasized the necessity of building the compute infrastructure to unlock the full potential of AI [4] - Oracle's CEO highlighted the company's AI infrastructure as crucial for OpenAI's rapid growth [5] Group 3 - The U.S. administration supports the Stargate project as a means to maintain national security and global competitiveness against rivals like China [6] - Nvidia announced plans to invest up to $100 billion in OpenAI, providing advanced chips to support the Stargate rollout, which will include deploying 10 gigawatts of Nvidia-powered systems for AI training and inference [7] - The deal with Nvidia is seen as a pivotal moment in the AI arms race, pressuring competitors like Meta, Amazon, Alphabet, and Microsoft to increase capital spending [8]

Core Viewpoint - The U.S. government is considering taking a 10% equity stake in Intel Corp. as part of a shift in industrial policy, which has led to a rise in Intel's stock price by approximately 6% following the news [1][2][3]. Group 1: Government Involvement - President Trump indicated that the government should receive about 10% of Intel, which has a market capitalization of just over $100 billion [1]. - Commerce Secretary Howard Lutnick stated that the government is seeking an equity stake in exchange for funds from the CHIPS Act [3][4]. - The government's stake is expected to be nonvoting, and discussions with Intel are ongoing [2][4]. Group 2: Intel's Financial Moves - Intel recently secured a $2 billion investment from SoftBank, representing about 2% of the company [4]. - The company has been investing billions to establish chip factories in Ohio, aiming to produce advanced chips, including those for AI [5]. - Intel's Ohio factory is now projected to begin operations in 2030, with construction slowed down based on market conditions [6]. Group 3: Market Position and Competition - Intel is currently the only American company capable of manufacturing the most advanced chips domestically, although it is perceived to be lagging behind Taiwan Semiconductor Manufacturing Company [5]. - The company had previously finalized nearly $8 billion in grants under the CHIPS and Science Act to support its factory-building initiatives [6].

Core Insights - Taiwan Semiconductor Manufacturing Company (TSMC) is advancing its global manufacturing expansion to meet the demand for advanced process technologies, raising its planned U.S. investment to $165 billion by March 2025 [1][10] - The expansion includes six advanced wafer fabs, two advanced packaging facilities, and a major R&D center in Arizona, aimed at supporting leading-edge customers in smartphones, AI, and HPC applications [1][10] - TSMC is also expanding in Japan with its first Kumamoto specialty fab already in production and a second fab set to begin construction later this year [2] - In Europe, TSMC plans to establish a specialty technology fab in Dresden, Germany [2] - This global expansion strategy is intended to secure leadership in advanced chip manufacturing and address geopolitical concerns through supply chain diversification [3] Financial Performance and Projections - TSMC anticipates a gross margin contraction of 2-3% in 2025, with further dilution expected to widen to 3-4% annually in subsequent years due to the ramp-up of new fabs [3][10] - In Q2 2025, TSMC's gross margin declined by 20 basis points sequentially, with forecasts indicating a further contraction of 210 basis points in Q3 [4] - The company plans to allocate $38-$42 billion in capital expenditures (CapEx) for 2025, emphasizing the importance of execution and cost discipline to protect margins [4] - Despite these challenges, TSMC remains confident in sustaining a long-term gross margin above 53% [4] Competitive Landscape - TSMC leads the global foundry market, but competitors like Intel and GlobalFoundries are increasing their efforts in localized chip manufacturing [5] - Intel is investing $100 billion for new fabs in the U.S. and Europe under its IDM 2.0 strategy, aiming to compete directly with TSMC [6] - GlobalFoundries is expanding capacity in the U.S., Germany, and Singapore to meet demand for automotive, IoT, and industrial chips, positioning itself as a trusted local manufacturing partner [7] Stock Performance and Valuation - TSMC's shares have increased approximately 22.3% year-to-date, outperforming the Zacks Computer and Technology sector's growth of 13.8% [8] - The company trades at a forward price-to-earnings ratio of 23.13, which is lower than the sector's average of 28.19 [12] - The Zacks Consensus Estimate for TSMC's earnings in 2025 and 2026 indicates a year-over-year increase of 36.9% and 13.1%, respectively, although estimates have been revised downwards recently [15]

Investment Announcement - SoftBank will make a $2 billion investment in Intel, purchasing shares at $23 each, leading to a 4% increase in Intel's stock during extended trading [1][2] Market Performance - Intel's shares experienced a significant decline of 60% last year, marking the worst performance in over 50 years, but have rebounded with an 18% increase in 2025 as of the latest close [2] Strategic Importance - Intel is recognized as a critical U.S. supplier for advanced semiconductor manufacturing, being the only American company capable of producing the most advanced chips [3] Foundry Business Challenges - Intel's foundry business has not yet secured a major customer, which is essential for stabilization and growth; the company has indicated it will wait for a customer before committing to further investments [4] Leadership Statements - SoftBank's CEO Masayoshi Son expressed confidence in Intel's role in expanding advanced semiconductor manufacturing in the U.S., while Intel's CEO Lip-Bu Tan acknowledged the importance of this investment [5]

Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) reported strong Q2 results and an optimistic outlook, with shares up nearly 25% year-to-date, driven by its leadership in advanced chip manufacturing for AI infrastructure [1][10]. Financial Performance - In Q2, TSMC's revenue increased by 44% to $30.1 billion, with earnings per American depositary receipt (ADR) soaring 67% to $2.47 [4]. - The company's gross margin expanded by 540 basis points year-over-year to 58.6%, although it anticipates a decline to 56.5% in Q3 due to currency headwinds and the ramp-up of new facilities [5]. Revenue Drivers - Advanced nodes (7 nm and under) accounted for 74% of TSMC's revenue, up from 67% a year ago, with the newest 3-nm technology contributing 24% of total wafer revenue, a significant increase from 15% [3]. - High-performance computing (HPC) was the largest revenue driver, making up 60% of total revenue in Q2, up from 52% a year ago, with HPC revenue climbing 14% sequentially [3]. Future Outlook - TSMC forecasts Q3 revenue between $31.8 billion and $33 billion, indicating approximately 38% year-over-year growth at the midpoint, with operating margins projected between 45.5% and 47.5% [6]. - The company raised its full-year revenue growth forecast to 30%, citing accelerating AI demand and strengthening data center orders [7]. Strategic Investments - TSMC is investing $165 billion in advanced semiconductor manufacturing in the U.S., with the construction of its second fab in Arizona completed and the first fab in high-volume production [8]. - The company plans to build six fabs, two advanced packaging facilities, and establish an R&D center [8]. Competitive Position - TSMC has established itself as a leader in the semiconductor value chain, benefiting from its scale and technological expertise, especially as rivals like Intel and Samsung face challenges [2][10]. - The company is well-positioned to capitalize on the ongoing AI infrastructure build-out, maintaining strong pricing power despite anticipated gross margin pressures from overseas expansion [11]. Valuation - TSMC's stock is trading at a forward price-to-earnings (P/E) ratio of 26 based on 2025 estimates, with a price/earnings-to-growth (PEG) ratio of around 0.7, indicating it is attractively valued [12].

Group 1 - The semiconductor industry is significantly expanding production capacity to meet the growing demand for artificial intelligence (AI) applications [1] - According to SEMI's report, global wafer capacity is expected to grow at an annual rate of 7% from the end of last year to 2028, reaching a record monthly capacity of 11.1 million wafers by 2028 [1] - Advanced process capacity below 7nm is projected to increase by approximately 69% from last year's monthly capacity of 850,000 wafers to 1.4 million wafers by 2028 [1] Group 2 - The capacity for processes below 2nm is expected to expand significantly, with this year's capacity being less than 200,000 wafers, projected to exceed 500,000 wafers by 2028 [1] - Investment in advanced process equipment is expected to exceed $50 billion by 2028, up from $26 billion last year [1] - Investment in 2nm and below wafer equipment is projected to more than double from $19 billion last year to $43 billion by 2028, representing a 120% increase [1]

Core Insights - The infrastructure development to support AI applications is creating significant investment opportunities, with Nvidia being a major beneficiary due to its advanced chips and software [1][2] - Nvidia's revenue has dramatically increased from $61 billion in fiscal 2024 to over $130 billion in fiscal 2025, with expectations of approximately $90 billion in the first half of fiscal 2026, driven by the data center segment [2] - Dell Technologies is also benefiting from the AI boom, with its Infrastructure Solutions Group achieving record sales of $43.6 billion in fiscal 2025, a 29% year-over-year increase [5] Nvidia's Performance - Nvidia's AI factories are contributing to Dell's backlog, with the company seeing substantial growth in its AI server business, which generated nearly $10 billion, up from $1.5 billion in fiscal 2024 [5][6] - The demand for AI infrastructure is unprecedented, with Dell reporting a $14.4 billion AI backlog and $12.1 billion in AI orders in the first quarter of fiscal 2026 [6] Dell's Strategic Position - Dell is not solely an AI company but is well-positioned to benefit from the AI revolution, with its stock rebounding due to strong growth prospects [7][8] - The Client Solutions segment is integrating AI for commercial and retail clients, providing stable cash flow and generating more revenue than the Infrastructure Solutions group last year [9] Shareholder Returns - Dell's management is committed to returning at least 80% of its adjusted free cash flow to shareholders, increasing its annual dividend by 18% and approving a $10 billion share repurchase authorization [10] - The combination of surging demand and a growing backlog for AI servers makes it an opportune time to invest in Dell stock [11]

Core Insights - Taiwan Semiconductor Manufacturing Company (TSMC) is making a significant investment of $100 billion in the United States, raising its total planned U.S. expenditure to $165 billion, which includes five wafer fabs, two advanced packaging plants, and a major research and development center [1][11] - TSMC is also expanding its manufacturing capabilities in Japan and Germany, with plans to build 11 wafer manufacturing fabs and four advanced packaging facilities in Taiwan over the next several years [3][11] - The expansion aims to secure leadership in advanced chip manufacturing and address geopolitical concerns regarding supply chain diversification [4][11] Investment and Financial Outlook - TSMC expects a gross margin decline of 2-3% in 2025 due to the ramp-up of new fabs, with further dilution anticipated to widen to 3-4% annually in subsequent years [4][11] - The company has planned capital expenditures (CapEx) of $38-$42 billion for 2025, emphasizing the importance of execution and cost discipline to protect margins [5] - Despite the anticipated margin pressures, TSMC remains confident in sustaining a long-term gross margin above 53% [5] Competitive Landscape - TSMC leads the global foundry market, but competitors like Intel and GlobalFoundries are increasing their efforts in localized chip manufacturing [6][8] - Intel is investing $100 billion in new fabs in the U.S. and Europe under its IDM 2.0 strategy, aiming to compete directly with TSMC [7] - GlobalFoundries is expanding its capacity in the U.S., Germany, and Singapore to meet demand for automotive, IoT, and industrial chips, positioning itself as a trusted local manufacturing partner [8] Market Performance - TSMC shares have gained 12.1% year to date, outperforming the Semiconductor - Circuit Foundry industry's growth of 7.1% [9] - The forward price-to-sales ratio for TSMC is 8.62X, which is in line with the industry's average [12] - Zacks Consensus Estimate indicates TSMC's earnings growth of 31.82% for 2025 and 15.82% for 2026, with upward revisions in estimates over the past 30 days [15]