Key Takeaways Buy This Tech-Topping AI Data Center Stock Still Down 50% from Its Highs Buy This Tech Stock and Chip Powerhouse and Hold ForeverWall Street celebrated the start of tariff negotiations on Wednesday afternoon, sending the S&P 500 and the Nasdaq skyrocketing.The stock market roared back to life after Trump “authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%.” At the same time, the Trump administration doubled down on its tariff battle with China. ...

Although the market is in a downturn right now, I've still got my eyes on the horizon. Depending on the effects of tariffs, we could be in for some more stock market pain over the next few months, but if that timeline is stretched out to three or five years, today's stock prices start to make a lot more sense.One chip stock that I'm excited about is Taiwan Semiconductor Manufacturing Company (TSM 11.95%) -- or TSMC. I think it could easily become a trillion-dollar company in a relatively short time frame. I ...

Taiwan Semiconductor Manufacturing Company (TSMC) may have to pay a fine of $1 billion or more to resolve a U.S. export control investigation related to a chip it made that was used in a Huawei AI processor, according to a report by Reuters.TSMC did not provide any further comments as it is now “in [a] quiet period,” a spokesperson for the chipmaker said in an emailed statement to TechCrunch. It’s the latest development in a situation that first came to light in late 2024 involving TSMC, Huawei, and Xiamen ...

This market strength has unfortunately not stopped TSMC stock from falling. Geopolitical tensions with neighboring China are on the rise, and some investors fear for the future of the company should China invade the island. Also, investors fear the effect of tariffs on the company despite the Trump administration exempting semiconductors. Nonetheless, TSMC seems to only extend its dominance, which makes its stock attractive with its lower price. TSMC's foundry market share grew more than 2 percentage points ...

Taiwan Semiconductor Manufacturing Company Limited (TSM) , which is also known as TSMC, has taken a sharp hit, sliding 26% year to date. This drop significantly underperforms the broader Zacks Computer and Technology sector, which fell 20.8% during the same period.Image Source: Zacks Investment ResearchThis steep decline raises the question: Should investors cut their losses and exit, or is it worth holding onto? While the near-term headwinds are real, the long-term growth story for Taiwan Semiconductor rem ...

Taiwan Semiconductor Manufacturing (TSM -0.90%) stock is losing ground again in Tuesday's trading. The chip foundry leader's share price was down 0.4% as of 2 p.m. ET amid the backdrop of a 0.1% gain for both the S&P 500 and the Nasdaq Composite. Notably, the stock had been up as much as 4.3% earlier in the session.TSMC initially rose today thanks to investor hopes for relief on tariffs, but broader-market sentiment turned negative again as the day progressed and has dragged its share price lower. The stock ...

Core Viewpoint - The recent trade tariffs announced by President Trump notably excluded the semiconductor industry, particularly benefiting Taiwan Semiconductor Manufacturing (TSM) and providing a potential investment opportunity for savvy investors [1][2][3]. Group 1: Impact of Tariffs - The latest round of trade tariffs targets a wide range of goods but spares semiconductor products and chip exports from Taiwan, which helps stabilize the sector amidst broader market volatility [1][2]. - The exemption from tariffs may lead to fewer financial headwinds for companies like Taiwan Semiconductor Manufacturing, positioning them for future growth [3][5]. Group 2: Investment Sentiment - Institutional investors have shown confidence in Taiwan Semiconductor, with approximately $9.8 billion invested in the stock over the past quarter, indicating a positive outlook despite market uncertainties [6]. - In the current quarter, an additional $16 million has been invested in Taiwan Semiconductor, reflecting ongoing institutional interest [7]. Group 3: Stock Forecast and Valuation - Analysts have set a 12-month price target for Taiwan Semiconductor at $220, suggesting a potential upside of approximately 49.79% from the current price of $146.88 [9][10]. - The stock trades at a price-to-book (P/B) ratio of 7.2x, which is a premium compared to the computer sector's average of 5.7x, indicating strong market confidence in the company's value [11][12]. Group 4: Market Dynamics - Short interest in Taiwan Semiconductor has declined by over 7% in the past month, suggesting a potential bearish capitulation and a more stable environment for the company following the tariff exemption [9]. - Despite recent stock price declines, the market remains optimistic about Taiwan Semiconductor's long-term prospects, as evidenced by the consensus price target set by analysts [10][12].

Core Viewpoint - TSMC is experiencing a challenging 2025 despite a strong start, with shares down over one-third from their 52-week high due to negative sentiment in tech stocks and tariff impacts [1][2][3] Group 1: Financial Performance - TSMC's revenue in the first two months of 2025 increased by 39% year-over-year, indicating potential to exceed Q1 2025 revenue guidance of $25.4 billion, which represents a 34% increase from the previous year [5][6] - Analysts expect a 49% increase in Q1 earnings to $2.05 per share, driven by a projected 5.5 percentage point rise in operating margin [7] - TSMC's stock is currently trading at under 25 times trailing earnings and less than 19 times forward earnings, making it more attractive compared to the Nasdaq-100 index's price-to-earnings ratio of around 29 [13] Group 2: Market Demand and Growth Drivers - The surge in TSMC's sales is largely attributed to the growing demand for AI chips across various applications, including data centers, smartphones, PCs, and automotive [8] - TSMC is focused on increasing its AI chip production capacity to meet the high demand from Nvidia, which has captured over 70% of TSMC's advanced chip packaging capacity [9] - Other AI chip companies, such as Broadcom and Marvell Technology, are also experiencing significant growth, benefiting from the demand for custom AI processors that TSMC manufactures [11] Group 3: Future Outlook - TSMC is well-positioned to capitalize on the secular growth of the chip market driven by AI, with a forecasted compound annual growth rate (CAGR) of 20% in revenue over the next five years [12][15] - Analysts are projecting a 29% increase in TSMC's earnings for 2025, with expectations for further growth in the following years [14]

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Company Performance - TSMC closed at $166, with a +0.45% change from the previous day, underperforming the S&P 500 which gained 0.55% [1] - Over the past month, TSMC shares have decreased by 8.46%, while the Computer and Technology sector and the S&P 500 fell by 8.88% and 6.22%, respectively [1] Upcoming Earnings - TSMC is expected to report an EPS of $2.02, reflecting a 46.38% increase from the same quarter last year, with anticipated revenue of $25.2 billion, a 33.55% rise year-over-year [2] Fiscal Year Projections - For the fiscal year, earnings are projected at $9.15 per share and revenue at $113.51 billion, indicating increases of 29.97% and 26% from the previous year [3] Analyst Estimates - Recent changes in analyst estimates for TSMC suggest a positive outlook on the company's business performance and profit potential [3][4] Zacks Rank - TSMC currently holds a Zacks Rank of 3 (Hold), with a consensus EPS projection that has decreased by 0.48% in the last 30 days [5] Valuation Metrics - TSMC has a Forward P/E ratio of 18.06, which is in line with the industry average [6] - The company has a PEG ratio of 0.57, matching the average PEG ratio of the Semiconductor - Circuit Foundry industry [7] Industry Context - The Semiconductor - Circuit Foundry industry is ranked 77 in the Zacks Industry Rank, placing it in the top 31% of over 250 industries [8]