Core Viewpoint - Taiwan Semiconductor (TSMC) is positioned as a critical player in the global semiconductor industry, particularly in the context of AI technology proliferation, with its stock currently down approximately 10% from all-time highs, presenting a potential buying opportunity [1]. Group 1: Technology Leadership - TSMC is recognized as a leader in chip production, benefiting from its neutral manufacturing position, which allows it to capitalize on the overall advancement in technology [2]. - The company is one of the few capable of producing 3nm chips, which are among the most advanced in the market, allowing for greater transistor density and enhanced performance [2]. Group 2: Future Developments - TSMC is developing its next-generation 2nm chips, expected to enter production in 2025, with pre-production demand already exceeding that of its 3nm and 5nm chips [3]. - The 2nm chips are projected to consume 25% to 30% less power than previous generations when configured for the same processing power, addressing significant cost concerns in AI model training [3]. Group 3: Growth Projections - Management anticipates a revenue growth rate of 15% to 20% CAGR over the next several years, driven largely by the increasing demand for AI computing power, which is expected to grow at a 50% CAGR through 2028 [4]. - By 2028, AI-related revenue is projected to account for over 20% of TSMC's total revenue, indicating substantial growth potential [4]. Group 4: Valuation and Investment Outlook - Using a decade-long average P/E ratio of 20, TSMC's stock could have a 14% upside from current levels, but this is considered less attractive given the time frame to return to previous highs [5]. - If revenue growth is adjusted to 20% and the ending P/E ratio to 24, the potential upside increases to 63%, suggesting a CAGR for the stock price of 13%, which would outperform the market's long-term average [6].

JohnnyGreig Introduction The recent volatility in the semiconductor sector is a blessing for people like me who are looking to add one of the most important companies in the industry to their portfolios and maybe thought it may have been too late, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). I will go through some of the biggest catalysts that will help the company reach its potential in the next few years, as I believe the company is still flying under the radar of many investors and is u ...

Shares of TSMC (TSM) have gained 3.3% over the past four weeks to close the last trading session at $160.49, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $204.71 indicates a potential upside of 27.6%.The mean estimate comprises seven short-term price targets with a standard deviation of $28.26. While the lowest estimate of $170 indicates a 5.9% increase from the current price ...

A broader sell-off in the chip sector weighed on TSMC.Shares of Taiwan Semiconductor Manufacturing (TSM -5.81%) were falling today as bearish momentum in the broader semiconductor sector seemed to weigh on the stock. There was also a news item out of Japan that brought up a familiar bogeyman for TSMC.As of 12:18 p.m. ET, the stock was trading 5.8%, while the Nasdaq Composite had lost 2.3%, indicating a broader pullback in the market. Chip stocks are still volatileChip stocks like Taiwan Semi tend to go wher ...

INDIANAPOLIS, Sept. 03, 2024 (GLOBE NEWSWIRE) -- Indiana Secretary of Commerce David Rosenberg will lead an economic delegation to Taiwan this week to showcase Indiana’s future-focused economy and cultivate partnership opportunities to advance semiconductor R&D, production and applications in advanced manufacturing, technology and AI. This trip also kickstarts the opening of a new Indiana Economic Development Corporation (IEDC) office in Taipei.   "Indiana’s reputation as a globally engaged, future-focused ...

Can the world's leading semiconductor foundry help make investors richer in the long run?Buying and holding solid companies for a long, long time is a tried-and-tested method of making money in the stock market, as this strategy allows investors to not only capitalize on secular growth trends but also benefit from the power of compounding.For instance, an investment of $10,000 made in shares of Nvidia 10 years ago is now worth more than $2.7 million. The market has rewarded Nvidia stock handsomely over the ...

Core Insights - TSMC is the world's leading semiconductor foundry and a pioneer in the foundry model, manufacturing chips designed by other companies [1][2] - The stock of TSMC has increased by 68% as of August 28, driven by the surge in artificial intelligence applications [1] - TSMC's revenue from high-performance computing (HPC) chips grew by 28% from Q1 and accounted for 52% of its total revenue of $20.8 billion in Q2, marking a significant milestone [2] Company Overview - TSMC manufactures high-end chips for major companies like Nvidia, which are essential for training and running complex AI models [2] - The company expects AI-related revenue to exceed 20% of its total revenue by 2028, indicating a strong growth trajectory [2] Industry Context - The rise of AI applications, such as OpenAI's ChatGPT and Alphabet's Gemini, has created a demand for high-performance chips, positioning TSMC favorably in the market [1][2] - The AI gold rush has prompted companies across various sectors to explore AI integration, further driving demand for TSMC's semiconductor products [1]

In the past, the company's shares have soared and dived on various pieces of news. This wasn't one of those times.In nearly every stock's life, sooner or later it has a day where the market just can't decide whether it's a buy or sell. That happened to mighty chipmaker Taiwan Semiconductor Manufacturing (TSM -0.03%) (TSMC) on Thursday. Not coincidentally, this was the trading session just after the current hot company in the chip sphere published its latest market-shaking news item. On the day, TSMC traded ...

Nvidia has been the leader of semiconductor stocks over the last couple of years.Believe it or not, semiconductor chips are used for applications well beyond powering smart devices and electronics. For this reason, it's not entirely surprising that semiconductor stocks have been particularly big winners as the artificial intelligence (AI) revolution pushes forward.Among leading chip companies, Nvidia (NVDA -2.10%) stands out as the 800-pound gorilla right now. But with shares up 651% since August 2022, inve ...

Investors might want to bet on TSMC (TSM) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a changing earnings ...