sefa ozelTSM stock Q2: Strong results met market panic I last wrote on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) back in April 2024. As you can see from the chart below, that article, titled "Taiwan Semiconductor Stock Is Breaking Out (Technical Analysis)," was published on April 17, 2024. As the title suggests, the article was more focused on the technical trading patterns of the stock. In particular, I argued for a bull thesis based on the following considerations: Taiwan Semico ...

This semiconductor foundry giant seems on track to clock faster growth over the next five years.The past five years have been great for investors in Taiwan Semiconductor Manufacturing (TSM 5.03%), popularly known as TSMC. Share prices of the company have shot up an impressive 258% during this period and outperformed the S&P 500 index's comparable gains of 81% by a huge margin.TSMC's incredible rally could continue over the next five years as well. Let's take a closer look at why buying and holding this semi ...

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company's Q2 2024 revenue reached NT$673.5 billion, a year-on-year increase of 40.1% and a quarter-on-quarter increase of 13.6%, exceeding the Factset consensus estimate of NT$659.5 billion [1] - The net profit attributable to shareholders for Q2 2024 was NT$247.9 billion, up 36.3% year-on-year and 9.9% quarter-on-quarter, also surpassing the Factset consensus estimate of NT$236.4 billion [1] - The company expects to benefit from the demand for advanced processes driven by smartphones and AI in Q3 2024, with revenue guidance between US$22.4 billion and US$23.2 billion [1] - The company is progressing well with its N2 process, which is expected to enter mass production in 2025, and anticipates better performance and profitability from N2P and A16 processes compared to N3 [1] - The company announced its Foundry 2.0 model, highlighting its potential in advanced packaging and testing beyond traditional foundry services [1] - The company is planning price increases for advanced processes and packaging in 2025, aiming to negotiate with key clients to reflect its value without damaging relationships [1] - Revenue projections for 2024, 2025, and 2026 are NT$280.22 billion, NT$358.72 billion, and NT$425.94 billion, respectively, with net profits of NT$108.48 billion, NT$142.21 billion, and NT$170.01 billion [1] Financial Summary - For 2024, the expected revenue is NT$280.22 billion, with a year-on-year growth of 30% [2] - The projected net profit for 2024 is NT$108.48 billion, reflecting a 29% increase year-on-year [2] - The company's gross margin is expected to remain stable at around 54% [4] - The return on equity (ROE) is projected to be 53% for 2024 [4] - Earnings per share (EPS) for 2024 is estimated at NT$209.23 [2][4]

Taiwan Semiconductor is a vital business in the AI realm.The best artificial intelligence (AI) stock to buy right now is an incredibly hot topic. Some may argue that it's Nvidia; others may prefer Microsoft. While there are merits to both arguments, I prefer a different AI company.Like most AI businesses, my top pick isn't 100% focused on AI; it's all part of a larger strategy. Furthermore, without Taiwan Semiconductor Manufacturing (TSM -1.27%), none of the AI technologies would be possible. Luckily for in ...

Core Viewpoint - The geopolitical ties between TSMC and its clients create significant risks for semiconductor investors, necessitating a strategy to mitigate these risks while acknowledging the importance of TSMC in the industry [1][2][3]. Group 1: TSMC's Industry Role - TSMC is the leading manufacturer of advanced chips, producing for major companies like Apple, Nvidia, AMD, Qualcomm, and Intel, which rely on TSMC despite their own foundry capabilities [2]. - The geopolitical situation in Taiwan directly impacts the supply chain for these companies, as most advanced chips are manufactured in Taiwan, limiting alternatives in case of a crisis [3]. Group 2: Financial Performance - TSMC reported a revenue of $40 billion in the first half of the year, marking a 28% increase year-over-year, with comprehensive income rising to $17 billion, up 35% from the previous year [4]. - Despite its strong financials, TSMC's price-to-earnings (P/E) ratio is currently at 30, above its five-year average of 24, indicating a potential valuation risk [5]. Group 3: Investment Considerations - Investors should recognize the dissonance between TSMC's risks and those of its customers, as the premium valuations of chip design stocks may not accurately reflect the underlying risks associated with TSMC [6]. - A strategy that involves waiting for discounted valuations in TSMC and its customers may be more prudent than solely investing in TSMC or exiting chip stocks altogether [7].

asbe/iStock via Getty Images We previously covered Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in June 2024, discussing how NVIDIA Corporation's (NVDA) FQ1'25 outperformance and promising market trends surrounding generative AI had contributed to the stock's excellent rally. This was on top of the improved market sentiments from the foundry's recent price hikes, fully booked position through 2026, and expanded manufacturing capacity through the end of the decade, warranting our reiterated ...

How much demand is there for AI solutions?In today's video, I discuss Taiwan Semiconductor Manufacturing (TSM 7.29%) and other semiconductor companies. Check out the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were the market prices of July 30, 2024. The video was published on July 30, 2024. ...

Taiwan Semiconductor Manufacturing (NYSE:TSM), the world’s largest chip manufacturer, reported very strong second-quarter results and is clearly benefiting tremendously from the proliferation of artificial intelligence. Moreover, the valuation of Taiwan Semiconductor stock is undemanding while the firm has multiple, strong, positive catalysts. But investors should be aware the stock does pose more geopolitical risk than any other popular stock in the U.S. equities market.Given the latter point, I rate the s ...

BING-JHEN HONG TSMC (NYSE:TSM) recently reported its 2Q24 results and I joined in for the earnings call. Before I jump in on the earnings results, I thought I would first comment on the earnings call. In my opinion, the mood on the earnings call was much more jovial compared to prior earnings call and CEO Wei also sounded more energetic than he did before. In fact, TSMC CEO Wei even tried to be funny by saying Nvidia (NVDA) CEO Jensen's tagline and changing it for TSMC: "The more TSMC wafers you buy, th ...

Why the recent sell-off in the stock could be a buying opportunity.After a strong start to the year, shares of Taiwan Semiconductor Manufacturing (TSM -1.19%), or TSMC for short, have cooled off recently following some geopolitical worries. The stock is still up over 50% year to date, but down about 17% from its recent highs. The question for investors is whether TSMC is a buy following the pullback in the stock.Riding the AI semiconductor waveTSMC is a semiconductor contract manufacturer, which means that ...