Taiwan Semiconductor is a crucial supplier in artificial intelligence.Finding solid artificial intelligence (AI) investments doesn't necessarily mean picking a software company with the best technology. Instead, choosing a company like Taiwan Semiconductor Manufacturing (TSM -0.37%) that's supplying the lion's share of chips used in the hardware that creates AI models is also a great pick.When investing in a company like Taiwan Semiconductor, also known as TSMC, you don't have to pick a winner since it will ...

Nvidia was the first chip stock to reach a trillion-dollar market cap, but another could reach that milestone very soon.As it stands today, there are only seven companies in the world with market capitalizations in excess of $1 trillion. This exclusive club includes six of the  "Magnificent Seven" -- Microsoft, Apple, Nvidia, Alphabet, Amazon, and Meta Platforms.Nvidia is the only pure-play semiconductor and data center services business with a trillion-dollar valuation right now. But as Advanced Micro Devi ...

These stocks offer a clear path to market-beating returns.A great way to position for success in the stock market is to look for companies that not only have great long-term prospects but, importantly, have catalysts in the near term that can send their share prices higher.Here are two promising stocks that are set up for great returns over the next few years.1. Taiwan Semiconductor ManufacturingTaiwan Semiconductor Manufacturing (TSM 1.85%) enjoys a lucrative position as one of the leading chip foundries. ...

TSMC (TSM) closed the most recent trading day at $160, moving +1.85% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.7%. Elsewhere, the Dow saw an upswing of 0.01%, while the tech-heavy Nasdaq appreciated by 1.1%.The chip company's stock has climbed by 15.02% in the past month, exceeding the Computer and Technology sector's gain of 8.26% and the S&P 500's gain of 4.03%.Market participants will be closely following the financial results of TSMC in its upcomin ...

Concerns about a slowdown in Taiwan Semiconductor Manufacturing’s (NYSE:TSM) chip business is now a distant memory. Following the blowout earnings report by Nvidia (NASDAQ:NVDA) Taiwan Semiconductor stock is a buy for sure.Super Micro Computer (NASDAQ:SMCI) missed analyst forecasts in its own earnings report last month and sent the industry tumbling. Nvidia’s results solidify the foundry’s strong momentum.Taiwan Semiconductor Stock and NVDAYou can’t discuss TSM’s business without including how Nvidia is per ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

There is no stopping Taiwan Semiconductor Manufacturing (NYSE:TSM). The world’s largest pure play semiconductor foundry really has too much demand for its capacity and will be flush with growth for years to come. Despite the excess of good fortune showering down on Taiwan Semiconductor stock, shares are not overvalued. TSM stock is undervalued, with a price-to-earnings ratio of 20 and a sales multiple of less than 2. With sales growing at 16.5% CAGR and earnings at 18% CAGR, this is a discounted stock. Wall ...

Financial Review and Compliance - The consolidated financial statements for the three months ended March 31, 2024, and 2023 were reviewed, showing no significant discrepancies in financial presentation [6]. - The company reported a consolidated financial performance in accordance with International Accounting Standard 34, ensuring compliance with local regulations [6]. - The review was conducted under the Standards on Review Engagements of the Republic of China, focusing on financial and accounting inquiries [5]. - The engagement partners for the review were Shih Tsung Wu and Shang Chih Lin from Deloitte & Touche [7]. - The financial statements are presented in thousands of New Taiwan Dollars, adhering to local accounting principles [10]. - The review confirmed that the financial statements fairly represent the company's consolidated financial position as of March 31, 2024, and 2023 [6]. - The company’s cash flows for the three months ended March 31, 2024, were also reviewed and found to be in compliance with applicable standards [6]. - The independent auditors' review report was translated into English for reader convenience, maintaining the integrity of the original Chinese version [8]. - The financial statements are intended to reflect the company's financial performance and position in the Republic of China context [8]. - The review process is less comprehensive than an audit, which limits the assurance level regarding the identification of significant matters [5]. Financial Position and Performance - Total assets increased to $5,787,891,082, up 4.6% from $5,532,371,215 as of December 31, 2023 [11]. - Current assets rose to $2,452,767,394, representing 42% of total assets, compared to 40% in the previous quarter [11]. - Cash and cash equivalents increased by 15.9% to $1,698,195,704 from $1,465,427,753 [11]. - Total liabilities amounted to $2,122,174,828, remaining stable at 37% of total assets [11]. - Equity attributable to shareholders of the parent reached $3,635,731,930, accounting for 63% of total equity [11]. - Unappropriated earnings grew to $2,955,395,983, maintaining a 51% share of total equity [11]. - Noncurrent liabilities decreased slightly to $1,095,994,749, representing 19% of total liabilities [11]. - Inventories increased to $267,123,339, reflecting a 6.4% rise from $250,997,088 [11]. - Accounts payable rose to $56,424,812, a 1.3% increase from $55,726,757 [11]. - Total current liabilities increased to $1,026,180,079, up 12.3% from $913,583,316 [11]. Revenue and Income - Net revenue for the three months ended March 31, 2024, was $592.64 million, a 16.5% increase from $508.63 million in the same period of 2023 [14]. - Gross profit for the same period was $314.51 million, representing a gross margin of 53%, compared to 56% in the previous year [14]. - Operating expenses totaled $65.36 million, maintaining 11% of net revenue, consistent with the previous year [14]. - Income from operations was $249.02 million, accounting for 42% of net revenue, down from 45% in the prior year [14]. - Net income for the three months was $225.22 million, an 8.8% increase from $206.95 million in the same period last year [14]. - Total comprehensive income for the period was $266.50 million, reflecting a 30.8% increase from $203.65 million in the previous year [16]. - Basic and diluted earnings per share were both NT$8.70, up from NT$7.98 in the same period of 2023 [16]. - The company reported a foreign exchange gain of $3.20 million, compared to a loss of $44,363 in the previous year [14]. - Research and development expenses were $46.11 million, representing 8% of net revenue, consistent with the previous year [14]. Cash Flow and Investments - Cash generated from operations in Q1 2024 was NT$437,362,333, up from NT$385,931,234 in Q1 2023, reflecting a growth of 13.4% [22]. - Net cash generated by operating activities for Q1 2024 was NT$436,311,108, compared to NT$385,244,745 in Q1 2023, indicating an increase of 13.3% [22]. - Net cash used in investing activities for Q1 2024 was NT$159,806,991, a decrease from NT$272,231,795 in Q1 2023, showing a reduction of 41.2% [23]. - Net cash used in financing activities for Q1 2024 was NT$71,685,617, compared to NT$64,487,030 in Q1 2023, representing an increase of 11.0% [23]. - Cash and cash equivalents at the end of Q1 2024 totaled NT$1,698,195,704, up from NT$1,385,232,810 at the end of Q1 2023, marking an increase of 22.6% [26]. Shareholder Returns and Dividends - Cash dividends to shareholders amounted to $90,762,248, reflecting a commitment to return value to shareholders despite fluctuations in net income [18]. - TSMC's cash dividends per share for Q1 2024 are set at NT$4.00, an increase from NT$3.00 in Q1 2023 [87]. - The total cash dividends to shareholders for Q1 2024 amount to $103,734,517, compared to $77,796,213 in Q1 2023 [87]. Debt and Liabilities - Total liabilities as of March 31, 2024, were $1,009,462,421, up from $895,457,426 as of March 31, 2023, representing an increase of approximately 12.7% [128]. - The company's total financial liabilities as of March 31, 2024, were $1,774,692,676, slightly up from $1,768,812,131 as of December 31, 2023, indicating a marginal increase of about 0.3% [129]. - Bonds payable amounted to $1,186,624,225 as of March 31, 2024, with $28,846,265 due in less than 1 year [144]. - Long-term bank loans and lease liabilities combined total $12,830,932 and $34,483,988 respectively as of March 31, 2024 [144]. Investments and Marketable Securities - TSMC holds marketable securities valued at approximately NT$6,951,320,000 in commercial paper from Cathay Financial Holding Co., Ltd. [193]. - The fair value of TSMC's investment in ARM Holdings plc is approximately US$138,837,000 [193]. - TSMC's investment in commercial paper from various companies includes significant holdings in Bank of America Corporation and Morgan Stanley, with fair values of US$88,527,000 and US$82,268,000 respectively [193]. - The total carrying value of TSMC's marketable securities reflects a diverse investment strategy across multiple sectors [197]. Risk Management and Financial Instruments - The company manages liquidity risk by maintaining adequate cash and cash equivalents, ensuring sufficient funding to support operations over the next 12 months [143]. - Interest rate futures contracts with a contract amount of US$62,700 thousand were entered into to hedge against interest rate fluctuations, maturing in June 2024 [48]. - The effect of hedging instruments for the three months ended March 31, 2024 resulted in a change of $793,830 for net investments in foreign operations [55]. Employee Compensation and Benefits - The company recognized share-based payment expenses of $161.85 million during the period [90]. - TSMC's total liabilities under cash-settled share-based payment arrangements as of March 31, 2024, amounted to NT$82,942 thousand, compared to NT$23,379 thousand as of March 31, 2023 [119]. - The profit-sharing bonus to employees for the three months ended March 31, 2024, was $13,472,869, up from $12,363,840 in the same period of 2023, indicating an increase of approximately 9% [121].

Key TakeawaysTaiwan Semiconductor Manufacturing Co. reported April sales jumped nearly 60% as demand for artificial intelligence (AI) chips soars.The big contract semiconductor maker said last month's sales rose 20.9% from March.TSMC American depositary receipts (ADRs) traded near their all-time high. American depositary receipts (ADRs) of Taiwan Semiconductor Manufacturing Co. (TSM) traded near their all-time high Friday as the chipmaker’s sales skyrocketed last month on soaring demand for semiconductors u ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...