Latest news with #TSM
Yahoo
14 hours ago
- Business
- Yahoo
Taiwan Semiconductor Eyes UAE Gigafab, Seeks Crucial US Green Light
Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) is weighing an advanced gigafab in the United Arab Emirates. The contract chipmaker is exploring a complex of six factories (similar to its Arizona fab), subject to regulatory approval from the Trump administration, given the Gulf nation's ties to China and Iran's influence in the region. Taiwan Semiconductor held meetings with Steve Witkoff, the U.S. special representative to the Middle East, and MGX officials, Bloomberg reported on Friday, citing unnamed sources familiar with the Semiconductor accounts for the majority share of advanced chips designed by the likes of Nvidia Corp. (NASDAQ:NVDA) and Advanced Micro Devices, Inc. (NASDAQ:AMD) components that serve as the brains of electronic devices and are essential for training artificial-intelligence models. Taiwan Semiconductor executives visited the UAE in 2024, aspiring for potential geographical diversification amid support from the Biden administration subject to stringent conditions. However, the talks failed to fructify. After Trump assumed charge, the UAE sought a Taiwan Semiconductor fab and vied for easier access to Nvidia chips for AI data centers. In March, the UAE announced a $1.4 trillion commitment to invest in the U.S. Wedbush analyst Daniel Ives hailed Saudi Arabia as a significant area of penetration for the AI revolution after President Trump's key trip to the Middle East. Ives noted that the market opportunity in Saudi Arabia could add another $1 trillion to the broader global AI market in the coming years, posing tailwind for Nvidia, Palantir Technologies (NASDAQ:PLTR), Microsoft Corp (NASDAQ:MSFT), Inc (NASDAQ:AMZN), Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL), Tesla Inc (NASDAQ:TSLA). Price Action: TSM shares are trading lower by 0.94% to $191.50 premarket at last check Monday. Read Next:Image by Jack Hong via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? TAIWAN SEMICONDUCTOR (TSM): Free Stock Analysis Report This article Taiwan Semiconductor Eyes UAE Gigafab, Seeks Crucial US Green Light originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
3 days ago
- Business
- Business Insider
TSMC Stock Maintains High-Conviction AI Play Status With $220 Price Target
Taiwan Semiconductor Manufacturing Company (TSM), or TSMC for short, the world's numero uno pure-play semiconductor foundry, has surged nearly 20% over the past month. Despite this impressive rally, my outlook remains bullish. Confident Investing Starts Here: The company is well-positioned to benefit from powerful tailwinds, including relentless AI-driven demand, a dominant—nearly monopolistic—position in advanced chip manufacturing, ongoing geographic diversification, and a steady cadence of technological breakthroughs. Unveiling Next-generation Technologies in the Coming Years TSMC continues to be the principal manufacturer and primary supplier of chips for leading AI powerhouses, including Nvidia (NVDA), Advanced Micro Devices (AMD), Apple (AAPL), and Qualcomm (QCOM). Notably, TSM is also the producer of Nvidia's cutting-edge Blackwell chip series, which has recently gained immense popularity. TSMC's 3nm process currently represents the most advanced semiconductor technology in the industry, delivering superior power efficiency and performance. Looking ahead, anticipation is building around the company's upcoming 2nm and 1.6nm nodes, scheduled for launch in late 2025 and 2026, respectively. The 2nm technology, referred to as N2, remains on track for volume production in the second half of 2025. This next-generation process is expected to deliver a 10–15% improvement in processing speed at the same power consumption, or a 20–30% reduction in power usage at equivalent performance. Following that, the 1.6nm process is projected to further improve power efficiency by an additional 15–20% over the 2nm node. These advancements are especially timely, as data centers grapple with rising energy costs. The shift to more power-efficient chips is becoming not only a technological imperative but also an economic necessity. This positions TSMC as a key enabler in the ongoing global semiconductor upgrade cycle. Reflecting this momentum, TSMC has outlined strong long-term growth expectations. The company projects its AI-related chip revenue to grow at a compound annual growth rate (CAGR) of 45% over the next five years, while overall revenue is forecast to grow at a 20% CAGR during the same period. These figures underscore the company's pivotal role in powering the future of computing. Such growth potential hasn't gone unnoticed. Famous investor Cathie Wood 's Ark funds recently purchased 241,047 shares of Taiwan Semiconductor, worth $46.3 million, signaling firm institutional conviction. TSM Has Unrivaled Market Leadership TSM commands an overwhelming 64.9% global market share in the foundry segment, dwarfing its closest competitors— Samsung Electronics (SMSN) and Intel (INTC), according to Statista. Its unparalleled scale, deep client relationships, and technological edge create formidable barriers to entry. This dominant position grants TSM significant pricing power. Clients, many of whom have relied on TSM for decades, are unlikely to switch suppliers given the risk of falling behind in the rapidly evolving AI race. One of the major risk factors associated with TSM is its geographical location in Taiwan, which poses the risk of a takeover by China. However, TSM is prioritizing geographic diversification as a core strategic initiative, proactively addressing these risks by diversifying its global manufacturing footprint. In addition to its $65 billion investment in U.S.-based fabs, TSM has committed a further $100 billion to expand capacity globally. Its Arizona facility is reportedly operating at full capacity through 2027, highlighting robust demand. This geographic diversification not only reduces exposure to potential tariffs but also strengthens TSM's resilience to geopolitical volatility. Beyond the U.S., TSM is also establishing a new chip design center in Munich, Germany, as well as a manufacturing plant in Dresden, Germany, and new fabs in Japan. Taiwan Semiconductor's strategic investments beyond its home base reflect prudent risk management and reinforce its strategic shift toward a more balanced global presence. Pre-Earnings Numbers Point to Positive Outlook for Upcoming Earnings TSM is set to report its Q2 2025 earnings on July 17. The company is projected to report earnings per share (EPS) of $2.30, representing a 57.5% year-over-year increase. Additionally, Q2 revenues are projected to increase by 13% year-over-year, ranging between $28.4 billion and $29.2 billion, driven by high demand for its advanced 3-nanometer (nm) and 5-nm processes. On May 9, TSM unveiled impressive revenue figures for April 2025, marking the highest ever figure in any single month in the company's history. April net revenues galloped 48.1% year-over-year to 349.6 billion New Taiwan dollars (approximately $11.6 billion). It's worth noting that TSM anticipates 24% to 26% sales growth for FY2025, driven by strong demand for its latest nanochips amid the AI surge. Importantly, TSM trades at an attractive valuation compared to its peers. In terms of its valuation, TSM looks cheap. Currently, it's trading at an attractive forward P/E ratio of 21x, compared to much higher multiples of its peer group. Semiconductor company Advanced Micro Devices is trading at a higher forward P/E multiple (28x), while the AI prodigy Nvidia is trading at a forward P/E of 32x. Is TSMC a Buy, Sell, or Hold? On Wall Street, TSM stock carries a Strong Buy consensus rating based on seven Buy, one Hold, and zero Sell ratings over the past three months. TSM's average stock price target of $219.43 implies approximately 11% upside potential over the next twelve months. The semiconductor industry continues to experience strong growth, driven largely by the rapid adoption of artificial intelligence technologies. TSMC, with its unmatched manufacturing capabilities, deeply embedded customer relationships, and advanced technology roadmap, is exceptionally well-positioned to capitalize on this transformative trend. The company's timely investments in next-generation nodes—specifically 2nm and 1.6nm—alongside its global manufacturing expansion, align well with rising demand fueled by a broad upgrade cycle across the tech landscape. These factors collectively make TSMC a compelling long-term investment opportunity. With a favorable valuation and strong earnings momentum, the current environment presents an attractive entry point for investors looking to gain exposure to the accelerating AI megatrend.
Yahoo
3 days ago
- Business
- Yahoo
Notable open interest changes for May 29th
Wednesday's total option volume of 43.6 million contracts resulted in net open interest growth of 5.76 million calls and 4.84 million puts. NVIDIA (NVDA), Tesla (TSLA), Taiwan Semi (TSM) and Trump Media (DJT) saw the greatest growth. Top five new positions opened include 55k Taiwan Semi (TSM) 6/2 weekly 196.1 calls, 55k Taiwan Semi (TSM) 6/2 weekly 196.1 puts, 51k Trump Media (DJT) Jul-25 20 puts, 41k Unity Software (U) Jan-26 30 calls and 39k Pfizer (PFE) 5/30 weekly 23 puts. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on NVDA: Disclaimer & DisclosureReport an Issue Nvidia price target raised to $170 from $168 at Mizuho 'The Platform That Wins China Is Positioned to Lead Globally' Says Nvidia CEO About AI Nvidia price target raised to $135 from $120 at DA Davidson Nvidia price target raised to $165 from $150 at Raymond James Nvidia Upgraded to Buy by Top Analyst, Says Risks are 'Priced-In' Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Barclays Sees Opportunity in Taiwan Semi (TSM) Despite Headwinds, Cuts Target to $215
Barclays analyst Simon Coles recently lowered the price target on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) to $215 from $255 and kept an Overweight rating on the shares. TSM makes and sells integrated circuits and semiconductors. The advisory believes TSMC shares are already pricing in a slowdown and thus look increasingly attractive, the analyst tells investors in a research note. The advisory says the company's fiscal 2025 guidance was maintained which implies some slowdown in the second half of the year, which makes sense. A close-up of a complex network of integrated circuits used in logic semiconductors. Latest reports, per Chinese-language financial newspaper CTEE, indicate that Taiwan Semiconductor Manufacturing Company is planning to raise prices on one of its advanced manufacturing nodes soon. The global foundry is set to increase the price of its 4 nanometer manufacturing node by 10% and may increase it up to 30%, the news outlet added. Reports of TSM increasing prices have been doing the rounds since late last year. While we acknowledge the potential of TSM, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TSM and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires Disclosure: None.
Yahoo
4 days ago
- Business
- Yahoo
Barclays Sees Opportunity in Taiwan Semi (TSM) Despite Headwinds, Cuts Target to $215
Barclays analyst Simon Coles recently lowered the price target on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) to $215 from $255 and kept an Overweight rating on the shares. TSM makes and sells integrated circuits and semiconductors. The advisory believes TSMC shares are already pricing in a slowdown and thus look increasingly attractive, the analyst tells investors in a research note. The advisory says the company's fiscal 2025 guidance was maintained which implies some slowdown in the second half of the year, which makes sense. A close-up of a complex network of integrated circuits used in logic semiconductors. Latest reports, per Chinese-language financial newspaper CTEE, indicate that Taiwan Semiconductor Manufacturing Company is planning to raise prices on one of its advanced manufacturing nodes soon. The global foundry is set to increase the price of its 4 nanometer manufacturing node by 10% and may increase it up to 30%, the news outlet added. Reports of TSM increasing prices have been doing the rounds since late last year. While we acknowledge the potential of TSM, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TSM and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
