Investment Rating - The report initiates coverage on TSMC (TSM O) with an "Overweight" rating [1] Core Views - TSMC is the global leader in semiconductor foundry services and is well positioned to benefit from the AI industry trend [1] - The company s advanced manufacturing capabilities and strong technological expertise are irreplaceable in the industry [9] - TSMC s success is driven by its continuous investment in technological innovation and strategic growth including expansion plans in Japan [9] Financial Performance - In 2Q24 TSMC reported revenue of $20 82 billion up 40 1% YoY and 13 6% QoQ with net profit and diluted EPS both growing 36 3% [2] - Gross margin was 53 2% operating margin was 42 5% and net profit margin was 36 8% in 2Q24 [2] - Management expects 3Q24 revenue to be between $22 4 billion and $23 2 billion with gross margin between 53 5% and 55 5% and operating margin between 42 5% and 44 5% [2] Technology and Market Position - 3nm process accounted for 15% of wafer revenue in 2Q24 while 5nm and 7nm accounted for 35% and 17% respectively Advanced technologies (7nm and below) contributed 67% of total wafer revenue [2] - TSMC is a key supplier for AI related chips providing front end foundry services and CoWoS packaging for companies like NVIDIA Broadcom and AMD [3] - The company expects AI related revenue to reach 15 20% of total revenue in the next three years [3] Industry Overview - The global foundry market is dominated by TSMC Samsung UMC GlobalFoundries and SMIC with TSMC holding a 56 1% market share in 3Q22 [12] - The foundry industry is driven by demand for advanced process nodes particularly in high performance computing smartphones IoT automotive and consumer electronics [11] Valuation and Forecast - The report forecasts TSMC s net profit for 2024 2025 and 2026 to be NT$1 109 19 billion NT$1 423 30 billion and NT$1 597 06 billion respectively representing YoY growth of 32 3% 28 3% and 12 21% [4] - TSMC s P E ratios for 2024 2025 and 2026 are estimated at 26 2x 20 4x and 18 2x respectively which are below the industry average of 29 28x and 22 61x for US semiconductor equipment and manufacturing companies [4] - Key drivers for growth include increasing contributions from the 3nm process AI related foundry revenue and a steady recovery in consumer electronics [4]

Taiwan Semiconductor (NYSE: TSM ) has been one of my best picks in recent years. I covered the stock in October 2022 as I went long at what turned out to be a multiyear low in termsEarly 30s 'buy and hold' investor trying to achieve financial freedom to the greatest extent possible. Main focus within dividend growth investing & value. I've been investing for 10+ years and worked across several industries including finance, logistics, oil and pharma. Holding a Graduate Diploma within Accounting and MSc withi ...

Group 1 - The article discusses the author's previous rating of Taiwan Semiconductor Manufacturing Company Limited (TSMC) as 'Neutral/Hold' and acknowledges that this view was accurate for the first eight months [1] - The author emphasizes the importance of providing alpha-generating investment ideas and managing a family's portfolio through a Self Managed Super Fund [1] - The typical holding period for investments is mentioned to range from a few quarters to multiple years, indicating a long-term investment strategy [1] Group 2 - The author expresses a generalist approach to exploring, analyzing, and investing in various sectors, focusing on perceived alpha potential compared to the S&P 500 [1] - There is a suggestion for readers to review the ratings history of the author's published articles as a measure of the author's investment skill [1]

The stock has been falling since July.The investing world can't stop talking about Nvidia. The chipmaker was briefly the largest company in the world by market cap and has seen soaring profits due to the insatiable demand for its artificial intelligence (AI) semiconductor products. But this isn't the only company benefiting from the AI revolution.Enter Taiwan Semiconductor Manufacturing Company (TSM 4.13%), otherwise known as TSMC. The manufacturer of computer chips for Nvidia has seen its shares fall from ...

The U.S. approved a big new investment in chip plants.Shares of Taiwan Semiconductor (TSM 4.13%) jumped as much as 4.6% in trading on Tuesday on news the U.S. approved an additional $7.5 billion of investment for the company's U.S. chip manufacturing subsidiary. Shares closed the day up 4.1%.Investment in the U.S. grows TSMC's global presenceTSMC will invest another $7.5 billion in its U.S. factories, which brings the total investment to $24 billion. The U.S. investment is intended to answer concerns about ...

Taiwan Semiconductor Manufacturing Company (NYSE: TSM ) owns almost 30% of global foundry market, leading in 3nm, 5nm and 7nm process technologies. The company anticipates the capacity utilization will increase in the second half of FY24, which will potentially improve the overall growth inMore than 15 years of professional investment experience in global equities across all sectors. My investment style is fundamental, bottom-up, long-term, and quality growth-oriented. I am seeking companies specializing in ...

The latest trading session saw TSMC (TSM) ending at $174.76, denoting a +0.39% adjustment from its last day's close. This change outpaced the S&P 500's 0.28% gain on the day. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.15%.Prior to today's trading, shares of the chip company had gained 1.63% over the past month. This has outpaced the Computer and Technology sector's loss of 0.02% and lagged the S&P 500's gain of 2% in that time.Investors will be eagerly watching for the perf ...

KEY TAKEAWAYSTaiwan Semiconductor Manufacturing Co. and Samsung Electronics reportedly have been considering building large new factories in the United Arab Emirates.According to The Wall Street Journal, the projects being discussed "involve complexes that could contain numerous factories and cost over $100 billion in aggregate."The reported talks come amid surging demand for artificial intelligence (AI) computing. Taiwan Semiconductor Manufacturing Co. (TSM) and Samsung Electronics reportedly have been con ...

Higher production costs and rising valuations may make some investors hesitant.Taiwan Semiconductor Manufacturing (TSMC) (TSM -1.21%) can be something of an enigma for investors. It dominates the advanced manufacturing of semiconductors, giving it an essential role in the supply chain of all leading chip companies.Nonetheless, challenges unique to the company may make investors hesitate despite the company's obvious importance. Thus, investors need to take numerous factors into consideration before deciding ...

The Dubai International Financial Centre (DIFC) area of Dubai, United Arab Emirates, with the Burj Khalifa in the backdrop, Sept. 16, 2022.Global chip giants Taiwan Semiconductor Manufacturing Co. and Samsung Electronics have been in talks with the United Arab Emirates to explore building megafactories in the Middle East, The Wall Street Journal reported Sunday, citing people familiar with the interactions and strategies involved.Top executives at TSMC have visited the Gulf state recently to discuss plans o ...