Core Insights - Taiwan Semiconductor (TSM) is diversifying its manufacturing base outside of Taiwan, which has implications for investors [1] Group 1 - The company is taking steps to reduce its reliance on Taiwan for manufacturing [1] - This strategic shift may affect stock prices and investor sentiment [1] - The changes in manufacturing locations could lead to operational efficiencies and risk mitigation [1]

Core Viewpoint - TSMC's stock has surged due to strong quarterly results and long-term growth prospects driven by demand for AI chipsets and new technology advancements [1][2][6]. Group 1: Financial Performance - TSMC reported a record fourth-quarter net profit of $374.68 billion, a 57% increase year-over-year, primarily due to rising demand for AI chipsets [1]. - The company's first-quarter revenue guidance is between $25 billion and $25.8 billion, exceeding expectations by 6%, indicating strong near-term growth [2]. - TSMC's earnings per share are projected to increase by 21% from the previous year, with a Zacks Consensus Estimate of $9.12 [9]. Group 2: Growth Drivers - The demand for TSMC's custom AI chips from companies like Broadcom and Marvell Technology is expected to bolster future growth [3]. - The upcoming launch of TSMC's 2-nanometer chips is anticipated to drive further demand, with pre-order interest surpassing that for 3nm and 5nm chips [3]. - TSMC is well-positioned to capitalize on the semiconductor market's projected growth from $729 billion in 2022 to $1.47 trillion by 2030 [4]. Group 3: Strategic Initiatives - The new Stargate AI infrastructure program, backed by a $500 billion allocation, is expected to significantly benefit TSMC as its advanced chips are crucial for AI data centers [4]. - TSMC's net profit margin stands at 40.52%, slightly above the industry average of 40.51%, indicating efficient profit generation [5]. Group 4: Market Sentiment - Brokers have raised TSMC's average short-term price target by 7.5% to $235.13, with the highest target at $265, suggesting a potential upside of 21.2% [8].

Have you been paying attention to shares of TSMC (TSM) ? Shares have been on the move with the stock up 8.2% over the past month. The stock hit a new 52-week high of $225.43 in the previous session. TSMC has gained 13% since the start of the year compared to the 37.2% move for the Zacks Computer and Technology sector and the 114.6% return for the Zacks Semiconductor - Circuit Foundry industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed o ...

Investment Rating - Buy rating with a target price of $260, implying an 18.88% upside from the current price of $218.70 [2] Core Views - Revenue and gross margin exceeded expectations, leading to an upward revision of AI revenue guidance for the next five years [2] - Future 5-year AI revenue CAGR is projected at 45%, driven by ASIC and GPU chip demand [12][14] - First-generation N2 process is expected to enter mass production in H2 2025, with strong demand for AI and server chips [15] - Advanced packaging capacity expansion is ongoing, with CoWoS capacity expected to grow significantly through 2027 [24] - CPO (Co-Packaged Optics) technology is being developed to enhance data center interconnect speeds, potentially reaching 6.4 Tbps [25] Financial Performance - Q4 2024 revenue reached NT$868.46 billion (USD 26.9 billion), up 38.8% YoY, surpassing the guidance midpoint of USD 26.5 billion and Bloomberg consensus of USD 25.8 billion [5] - Gross margin for Q4 2024 was 59%, up 6 percentage points YoY, with operating profit of NT$425.71 billion (USD 13.18 billion), up 63.6% YoY [6] - Net income attributable to shareholders was NT$374.68 billion (USD 11.6 billion), up 57% YoY, with diluted EPS per ADR at USD 2.24, beating consensus of USD 2.16 [7] - 2025 revenue guidance is set at 25% YoY growth in USD terms, driven by AI server processor demand [11] Advanced Process and Packaging - 7nm and below advanced processes contributed 74% of Q4 2024 revenue, with 3nm and 5nm processes accounting for 26% and 34% respectively [13] - CoWoS advanced packaging capacity is expected to grow by 131%/35%/20% in 2025/2026/2027, reaching 85k/115k/138k wafers per month [24] - N2 process is set for mass production in H2 2025, with N2P and A16 processes following in H2 2026 [15] Capital Expenditure and Future Outlook - 2025 capital expenditure is projected at USD 38-42 billion, with 70% allocated to advanced process R&D and fab construction [11] - Overseas fab construction and rising power costs may dilute gross margin by 2-3 percentage points annually over the next 3-5 years, but advanced process premium and capacity utilization improvements are expected to offset this [16] - Long-term gross margin is expected to reach 60%, supported by N2 ramp-up and N5 to N3 capacity conversion [28]

Foundry giant Taiwan Semiconductor Manufacturing (NYSE: TSM), popularly known as TSMC, released its fourth-quarter 2024 results on Jan. 16, and investors reacted positively to the company's performance as it not only beat Wall Street's expectations but also delivered better-than-expected guidance.TSMC stock jumped nearly 4% following its earnings report. More importantly, its solid showing rubbed off positively on its peers in the semiconductor industry as well. That wasn't surprising as the Taiwan-based co ...

Shares of Taiwan Semiconductor Manufacturing (TSM 2.70%) were one of several artificial intelligence (AI) stocks moving higher today, a broad response to President Trump's announcement of the new Stargate AI infrastructure project yesterday afternoon.As of 12:27 p.m. ET, TSMC stock was up 2.9%. Billions are set to pour into AI chipsYesterday, President Trump announced a new AI infrastructure project called Stargate, bringing together the leaders of Oracle, OpenAI, and Softbank, the Japanese tech mega-invest ...

Stock Performance and Market Outlook - TSMC's stock has gained 87% in the past year, with shares jumping almost 4% following the release of its Q4 2024 results [1][2] - The company's Q1 2025 revenue guidance of $25 billion to $25.8 billion is 6% higher than Wall Street's expectations [3] - TSMC's dominant 64% share in the global foundry market positions it well to capitalize on the projected growth of the semiconductor market, which is expected to reach $1.47 trillion by 2030 [7] Financial Performance - TSMC reported Q4 2024 revenue of $26.9 billion, a 37% increase year-over-year, with adjusted earnings per share rising 55% to $2.24 [3] - Full-year 2024 revenue reached just over $90 billion, marking a 30% increase from 2023 levels [4] - The company anticipates a 35% year-over-year increase in Q1 2025 revenue, with full-year revenue growth expected in the mid-20% range [4] Profitability and Growth Drivers - TSMC expects a gross margin of 58% in Q1 2025, up from 53.1% in the same quarter last year [5] - Revenue from AI chips is projected to grow at a CAGR of 40% over the next five years, while overall revenue is expected to grow at a CAGR of 20% [5][6] - Growth opportunities in high-performance computing, AI, 5G smartphones, and PCs are expected to drive the semiconductor market and benefit TSMC [6] Valuation and Investment Considerations - TSMC's stock is trading at 33 times trailing earnings, higher than its five-year average of 22, but its forward P/E ratio of 24 suggests strong future earnings growth [9] - The forward P/E ratio is lower than the Nasdaq-100 index's forward earnings multiple of 25, indicating that TSMC stock remains a good value despite its recent gains [9][10]

Stock Positions and Affiliations - The Motley Fool holds positions in and recommends Lam Research and Taiwan Semiconductor Manufacturing [1] - Parkev Tatevosian is affiliated with The Motley Fool and may receive compensation for promoting its services [1] - Parkev Tatevosian does not hold any positions in the mentioned stocks [1]

The management team forecasts a compound annual growth rate of over 20% for the next several years.*Stock prices used were the afternoon prices of Jan. 18, 2025. The video was published on Jan. 20, 2025. ...

I maintained a bullish outlook on Taiwan Semiconductor Manufacturing Company Limited aka TSMC (NYSE: TSM ) going into Q4 FY24 earnings. And so far, it is playing out well, outperforming the S&P 500 ( SPY ) ( SPX ) ( IVV ) ( VOO ):Providing alpha-generating investment ideas. I am an independent investor managing my family's portfolio, primarily via a Self Managed Super Fund. You can expect my articles to deliver a clearly structured, evidence-based thesis. But first and foremost, I encourage readers to judge ...