KAOHSIUNG, Feb. 12, 2025 /PRNewswire/ -- E&R (E&R Engineering Corp.), a Taiwan-based semiconductor equipment manufacturer with 30 years of expertise, has supplied over 500 advanced semiconductor packaging tools to major OSATs worldwide, specializing in laser and plasma solutions. Its laser technologies include marking, scribing, grooving, and wafer ID/backside marking, while its vacuum plasma solutions enable surface cleaning, oxide removal, and pre-bonding/pre-underfill/ pre-molding treatment to enhance pa ...

With just one subscription to Beyond the Wall Investing , you can save thousands of dollars a year on equity research reports from banks. You'll keep your finger on the pulse and have access to the latest and highest-quality analysis of this type of information.I initiated my coverage of Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM ) in late November when the stock dipped slightly below the $200/share mark. At the time, I called TSMC "one of the best AI plays," meaning that despiteHe leads ...

Khaveen Investments is a Macroquantamental Hedge Fund managing a portfolio of globally diversified investments. With a vested interest in hundreds of investments spanning diverse asset classes, countries, sectors, and industries, we wield a multifaceted investment approach that combines top-down and bottom-up methodologies, integrating three core investment strategies: global macro, fundamental, and quantitative strategies. We serve accredited investors throughout the globe, which include HNW Individuals, C ...

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

Core Insights - Taiwan Semiconductor Manufacturing Company (TSMC) plays a crucial role in the global AI infrastructure ecosystem, making it relatively resilient to market downturns [1] - Recent challenges in the semiconductor industry, particularly concerns over AI spending due to the release of an open-source AI model by DeepSeek, have negatively impacted many semiconductor stocks [2] - TSMC is estimated to account for 65% of the global foundry market in 2024, positioning it favorably amidst fears about future AI spending [3] Financial Performance - TSMC's revenues for 2024 are projected to reach $90 billion, reflecting a 30% year-over-year increase, with gross margins expanding to 56.1% [6] - For the first quarter of fiscal 2025, TSMC expects revenues between $25 billion and $25.8 billion, representing a 34.7% year-over-year increase at the midpoint [6] - The high-performance computing (HPC) segment has become TSMC's largest revenue contributor, with HPC revenues up 58% year-over-year in 2024, accounting for nearly 51% of total revenues [7] Technological Advancements - TSMC leads in advanced semiconductor manufacturing, with advanced process nodes making up 69% of wafer revenue in 2024, up from 58% in 2023 [8] - The company plans to commence volume production of a next-generation 2-nanometer process node in the second half of 2025, with an extension called N2P expected in 2026 [8] Capital Expenditure and Growth Strategy - TSMC plans to allocate $38 billion to $42 billion in capital expenditures for 2025, with approximately 70% directed towards advanced process technologies [9] - The company anticipates strong demand for AI accelerators, expecting revenues from this segment to double in 2025, driven by data center demand [11] Market Position and Valuation - TSMC trades at 23.7 times forward earnings, which is lower than peers like Nvidia and ASML, indicating a potentially attractive valuation [13] - Analysts project TSMC's revenues and earnings per share to grow by 27.75% and 28.1%, respectively, in 2025, alongside a dividend yield of 0.94% [13]

Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) is positioned strongly for future growth as the world's largest contract chip manufacturer, making it a critical investment opportunity for investors [1] Investment Thesis - DeepSeek's R1 model, while innovative, does not impact TSMC's long-term investment viability as it focuses on making AI training more efficient, requiring less computing power [2] - The market's assumption that AI spending will decrease due to efficiency is misguided; instead, spending will likely remain steady while models become more efficient, accelerating innovation and returns on AI investments [3] Stock Performance - TSMC's stock has seen a decline of about 10% from its all-time high, presenting a buying opportunity for investors, especially given its valuation at 29 times trailing earnings and 22 times forward earnings [5] - The company is expected to achieve a 20% compound annual growth rate (CAGR) in revenue over the next five years, with AI-related hardware projected to grow at a 45% CAGR during the same period [6] Growth Drivers - Chip orders are typically placed years in advance, indicating that a single breakthrough from a competitor will not significantly alter TSMC's growth trajectory [7] - Upcoming chip technologies, including the 2-nanometer (2nm) chip, will provide significant efficiency gains, offering the same computing power as 3nm chips while consuming 20% to 30% less energy [8] - The A16 chip, set to debut in 2026, is expected to deliver an additional 15% to 20% energy savings compared to the 2nm chip, which is crucial for AI hyperscalers [9] Market Outlook - The chip industry continues to present growth opportunities alongside innovations, and while DeepSeek's efficiency improvements are notable, they are likely to be replicated by other AI platforms, sustaining AI investment momentum [10]

Group 1 - The article discusses the potential for undervalued stocks that are mispriced by the market, suggesting that investors should consider joining the investing group "Out Fox The Street" for insights and strategies [1][2] - Mark, the leader of "Out Fox The Street," provides stock picks and in-depth research aimed at helping readers identify potential multibaggers while managing portfolio risk through diversification [2] - The group offers features such as model portfolios, stock picks with identifiable catalysts, daily updates, real-time alerts, and community chat for direct interaction with Mark [2] Group 2 - The article emphasizes the importance of conducting personal research or consulting a financial advisor before making investment decisions, highlighting that investing carries risks, including the loss of principal [3] - It is noted that past performance does not guarantee future results, and no specific investment recommendations are provided for individual investors [4]

Group 1 - Taiwan Semiconductor Manufacturing Company (TSMC) has a strong management team led by CEO C.C. Wei, who has been in the role since 2018 and has a proven track record of meeting or exceeding expectations [2][4] - TSMC is the leading contract chip manufacturer, partnering with major companies like Nvidia, AMD, and Apple, which allows investors to gain exposure to the technology sector without needing to select individual winners [3][4] - The company is well-positioned to anticipate industry trends and order flows, which supports its optimistic growth projections [4] Group 2 - TSMC projects a compound annual growth rate (CAGR) of nearly 20% in revenue over the next five years, driven by demand from sectors such as artificial intelligence, smartphones, the Internet of Things, and automotive [5][10] - The CAGR calculation does not imply consistent annual growth, as revenue could fluctuate, but it emphasizes the importance of long-term performance in the cyclical chip industry [6] - AI-related revenue is expected to grow at a CAGR of 45% during the same period, indicating a shift in TSMC's revenue composition as this segment expands [7] Group 3 - TSMC's future projections depend on the successful development and timely launch of new technologies, including 2nm and 1.6nm chips, with production starting in late 2025 and late 2026, respectively [8] - Despite strong growth prospects, TSMC's stock is currently trading at 21 times forward earnings, which is relatively inexpensive compared to other major tech companies [9][10] - Given the projected 20% CAGR and the long-term growth rate of the S&P 500 at about 10%, TSMC presents a significant investment opportunity and is considered a top stock pick [11]

Core Insights - TSMC shares have lost all gains following impressive Q4 2024 results due to concerns from Deepseek, leading to investor skepticism about the sustainability of GPU demand [1] Company Analysis - TSMC's recent performance has been overshadowed by fears related to Deepseek, which has raised questions about the long-term viability of GPU sales [1] Investment Perspective - The article emphasizes the importance of identifying market asymmetries with favorable reward-to-risk ratios, particularly in high-quality companies with strong cash flow [1]

Group 1 - Taiwan Semiconductor Manufacturing Company (TSMC) has established itself as the world's leading and nearly monopolistic foundry for advanced semiconductor manufacturing processes [1] - TSMC's dominance in the semiconductor industry has created a landscape where chip manufacturing can be reliably outsourced to a single entity [1] Group 2 - The article emphasizes the importance of investing in companies within oligopolistic sectors that have high barriers to entry, highlighting TSMC as a prime example [1] - The author expresses a preference for mid- to long-term investment strategies focused on growth at a reasonable price, particularly in the semiconductor sector [1]