Core Insights - Taiwan Semiconductor Manufacturing Company (TSMC) reported its slowest monthly sales growth in over 18 months, with October revenue reaching 367.47 billion New Taiwan dollars ($11.86 billion), marking a 17% year-over-year increase, the slowest since February 2024 [3][4][6] - Despite the slowdown in sales growth, TSMC raised its 2025 revenue growth guidance to the mid-30% to 40% range, driven by a projected doubling of AI-related chip revenue [4][5] - Nvidia remains TSMC's most significant customer in the AI sector, with indications of strong demand, as Nvidia's CEO requested a 50% increase in TSMC's 3-nanometer wafer production [4][6][7] Revenue and Growth - TSMC's October revenue of $11.86 billion is a new monthly record, but the 17% growth is the slowest annual growth rate since February 2024 [3][4] - The company has adjusted its revenue growth forecast for 2025 to the mid-30% to 40% range, up from about 30% in U.S. dollar terms, primarily due to AI-related chip revenue [5][6] - TSMC anticipates that AI-related chip revenue will double in 2025 and grow at a mid-40% annual rate over the next five years [5][6] Market Reaction - TSMC's American depositary receipts rose by 3.6% in morning trading, contributing to a 45% gain for the year up to the previous Friday's close [7]

Core Viewpoint - Qualcomm's stock has shown moderate performance with a year-to-date increase of approximately 3% amid U.S.-China trade uncertainties, but the company reported strong Q2 FY'25 results, with revenue up 15% year-over-year to $10.84 billion and earnings per share at $2.85, driven by a rebound in the smartphone market [2][3] Revenue Growth - Qualcomm's revenue has grown at an average rate of 5.3% over the past three years, slightly below the S&P 500's 5.5% growth [5] - In the last 12 months, Qualcomm's revenue increased by 12.1%, from $36 billion to $42 billion, compared to the S&P 500's 5.5% growth [5] - Quarterly revenues rose by 17.5% to $11 billion from $9.4 billion a year prior, outperforming the S&P 500's 4.8% improvement [5] Profitability Metrics - Qualcomm has a price-to-sales (P/S) ratio of 4.2, compared to 3.0 for the S&P 500 [7] - The company's price-to-free cash flow (P/FCF) ratio is 12.4, while the S&P 500 stands at 20.5 [7] - Qualcomm's price-to-earnings (P/E) ratio is 16.2, significantly lower than the S&P 500's 26.4 [7] - The operating margin for Qualcomm is 26.4%, compared to 13.2% for the S&P 500, indicating strong profitability [8] Financial Stability - Qualcomm's debt is $15 billion, with a market capitalization of $176 billion, resulting in a debt-to-equity ratio of 8.5%, lower than the S&P 500's 19.9% [10] - Cash and cash equivalents amount to $14 billion out of $55 billion in total assets, leading to a cash-to-assets ratio of 25.7%, compared to 13.8% for the S&P 500 [10] Downturn Resilience - Qualcomm's stock has shown slightly better performance than the S&P 500 during recent downturns, including a 45.1% decline during the inflation shock of 2022, compared to a 25.4% decline for the S&P 500 [12] - The stock fully recovered to its pre-crisis peak by May 2024 and has since risen to around $160 [12] - Historical performance during the COVID-19 pandemic and the global financial crisis also indicates resilience, with Qualcomm recovering fully from significant declines [12][13] Overall Assessment - Qualcomm's operational performance and financial standing are assessed as very strong across key metrics, making the stock appealing at its current valuation [3][15]