The valuation history shown in the chart above is probably a good reflection of the sentiment that AI companies have had this year. Because when I wrote my first articleMy primary area of concentration will be on identifying companies of exceptional caliber, with a proven ability to reinvest capital for impressive returns. Targeting those with a market capitalization of less than $10 billion, affords ample opportunities for growth. The ideal scenario is for these companies to demonstrate a long-term capabil ...

Spending for all things AI is ramping up.Shares of Taiwan Semiconductor Manufacturing (TSM -1.13%) have soared over the last year, largely due to the soaring demand for cutting-edge chips capable of handling artificial intelligence (AI) workloads and a rebound in the broader semiconductor sector.TSMC, as the company is also known, is the world's largest contract manufacturer of semiconductors, serving companies like Apple, Nvidia, Broadcom, and AMD. It controls more than half of the third-party foundry mark ...

The AI chip market is expected to eclipse $200 billion by early next decade.One of the biggest opportunities among artificial intelligence (AI) investments is semiconductor stocks. Of course, some obvious opportunities include such powerhouses as Nvidia and Advanced Micro Devices. Both companies make chipsets called graphics processing units (GPUs), which play a critical role in developing generative AI applications.Below, I'll explain why the semiconductor realm presents such lucrative investment prospects ...

Taiwan Semiconductor Manufacturing Company Ltd. (TSM) shares have surged 89.8% in the past year, outperforming the broader Zacks Computer and Technology sector’s 32.6% growth and the S&P 500’s 26.2% rally in the said time frame. Such an impressive gain naturally leads investors to wonder whether Taiwan Semiconductor is still a compelling buy or if it is time to lock in profits.The company has been benefiting from its scale and capacity, particularly for advanced technologies, which are constantly bolstering ...

BING-JHEN HONG Investment Thesis I rate Taiwan Semiconductor Manufacturing Company (NYSE:TSM) as a buy due to its cutting-edge technological advancement, a solid market position supported by profitable strategic partnerships, and a dynamic client portfolio. TSM has led global semiconductor manufacturing, which explains its impressive solid fundamentals and good financials. It is the world's largest semiconductor foundry and has consistently developed new chip technology. The rise of generative artificia ...

Nvidia's valuation is keeping the stock from delivering more upside despite its outstanding growth, but there is a solid alternative for investors to consider.There is no denying that Nvidia (NVDA -0.03%) has been one of the top semiconductor stocks on the market in 2024, with stunning gains of 118% as of this writing. However, the recent stock price action indicates that investor confidence in this high-flying company is now wavering.The past two-and-a-half months have been quite volatile for Nvidia invest ...

BING-JHEN HONG The biggest challenge to Artificial Intelligence or AI today is the inability of many organizations to estimate the returns on their AI investments. I believe that’s a temporary phase that was born of the rapid scaling up of AI infrastructure by cloud service providers like Amazon’s AWS (AMZN), Microsoft Corp (MSFT), et al, as well as super-premium smartphone incumbents like Apple Inc. (AAPL) and their respective pushes into the realm of artificial intelligence. The rest of the enterprise ...

TSMC (TSM) closed the latest trading day at $162.43, indicating a -0.22% change from the previous session's end. This change lagged the S&P 500's 0.45% gain on the day. Elsewhere, the Dow saw a downswing of 0.23%, while the tech-heavy Nasdaq appreciated by 0.84%.Heading into today, shares of the chip company had lost 2.89% over the past month, lagging the Computer and Technology sector's loss of 0.98% and the S&P 500's gain of 2.54% in that time.The investment community will be closely monitoring the perfor ...

Shares of TSMC pulled back after growth slowed in August.Shares of Taiwan Semiconductor (TSM -2.23%) were moving lower today after the chip manufacturing giant posted slowing revenue growth in its August update.Though its growth rate was still strong, it marked a deceleration from July, and that news was enough to push the stock lower.As of 10:46 a.m. ET, the stock was down 2.6%. TSMC hits the brakesTaiwan Semiconductor has been one of the biggest beneficiaries of the artificial intelligence (AI) boom thus ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Let's take a look at what these Wall Street heavyweights have to say about TSMC (TSM) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.TSMC currently has an average brokerag ...