Latest news with #TSMC
Yahoo
2 hours ago
- Business
- Yahoo
TSMC (TSM) Declines More Than Market: Some Information for Investors
TSMC (TSM) ended the recent trading session at $196.14, demonstrating a -0.78% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.56% for the day. On the other hand, the Dow registered a loss of 0.58%, and the technology-centric Nasdaq decreased by 0.51%. The chip company's shares have seen an increase of 20.18% over the last month, surpassing the Computer and Technology sector's gain of 11.21% and the S&P 500's gain of 7.37%. The investment community will be closely monitoring the performance of TSMC in its forthcoming earnings report. The company is expected to report EPS of $2.29, up 54.73% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $29.66 billion, reflecting a 42.47% rise from the equivalent quarter last year. For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.19 per share and a revenue of $115.46 billion, signifying shifts of +30.54% and +28.17%, respectively, from the last year. It's also important for investors to be aware of any recent modifications to analyst estimates for TSMC. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.07% higher. TSMC is currently sporting a Zacks Rank of #3 (Hold). Looking at its valuation, TSMC is holding a Forward P/E ratio of 21.51. This expresses no noticeable deviation compared to the average Forward P/E of 21.51 of its industry. It is also worth noting that TSM currently has a PEG ratio of 1.03. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Semiconductor - Circuit Foundry industry had an average PEG ratio of 1.03 as trading concluded yesterday. The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 37% of all industries, numbering over 250. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow TSM in the coming trading sessions, be sure to utilize Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
4 hours ago
- Business
- Yahoo
Nvidia CEO Jensen Huang touts US manufacturing plans, warns China export controls threaten US chip lead
Nvidia (NVDA) CEO Jensen Huang touted the company's plans to manufacture its AI chips in the US, while warning against export controls that limit its ability to ship products to China. Huang made the comments during Nvidia's fiscal first quarter earnings call on Wednesday, saying that he expects the company to build everything from chips to supercomputers in America by the end of the year. To do that, Huang explained, Nvidia is working with Taiwanese companies ranging from TSMC and Foxconn to Winstron to manufacture its various components. "To encourage and support these investments, we've made substantial long-term purchase commitments, a deep investment in America's AI manufacturing future," Huang said during the call. Huang's statements come after President Trump criticized Apple for not moving iPhone manufacturing to America and threatened to add a 25% tariff to the company's products if it doesn't commit to such a move. While Huang said he agrees with Trump's desire to bring manufacturing back to the US, he warned against the administration's decision to ban Nvidia chip sales to China, saying that the AI platform that wins China is positioned to lead globally. 'China is one of the world's largest AI markets and a springboard to AI success,' Huang said, adding that China's AI will move on with or without US-made chips like Nvidia's. Nvidia announced that the Trump administration banned sales of its H20 chip to China in April and reported a $4.5 billion revenue impact in its first fiscal quarter. The company says it will also miss out on $8 billion worth of H20 revenue in its second quarter. What's more, Nvidia says it can no longer build chips on its Hopper platform to manufacture chips for China. The company's Hopper line is the predecessor to Nvidia's current Blackwell chips. Nvidia specifically designed the H20 to meet the Biden administration's restrictions on AI chips destined for China. But DeepSeek sent shockwaves through Washington and Wall Street when it proved it could produce powerful AI models using below top-of-the-line Nvidia chips. As a result, President Trump imposed tighter restrictions on the company's chips, banning the sale of H20s in the country. Huang, however, said it's not just about selling hardware into China. 'The AI race isn't just about chips,' he said, adding that the more important aspect of the US-China AI battle is the software stack that companies build on. Huang has previously laid out how important it is for Nvidia to continue to compete in China, explaining that the country has half of the world's AI developers and that driving those workers to build on Chinese chips would hurt not just Nvidia, but also the US' national security goals. Though Nvidia is unable to sell into China, it did win a reprieve from the Biden administration's planned AI diffusion rules. Those regulations would have created a three-tier system broken down by countries that can freely purchase chips, those that needed licenses to buy them, and those that were banned from ordering chips. But the Trump administration tossed out those rules before they were scheduled to go into place this month. Still, it plans to introduce its own regulations sometime in the future. Nvidia also benefited from Trump's visit to the Middle East, with the company set to sell hundreds of thousands of chips to Saudi Arabia and the United Arab Emirates, as part of those countries' own sovereign AI plans, or AI services operated and funded by governments rather than individual independent companies. Read more about Nvidia's earnings: Nvidia to report Q1 earnings as Middle East deals, export control reprieve boost stock How Nvidia 'played a central role' in the $306 billion AI startup boom Why Nvidia's rise could signal bad news for climate goals Nvidia's bear case: Is the hype train running out of tracks? Big Tech's spending drove Nvidia's rise Nvidia China revenue set to cross $6 billion in Q1 as investors brace for export ban impact 3 things Nvidia investors should look out for in its earnings call Nvidia earnings topped forecasts by 10% over past 2 years Email Daniel Howley at dhowley@ Follow him on X/Twitter at @DanielHowley. 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
Yahoo
4 hours ago
- Business
- Yahoo
Nvidia CEO Jensen Huang touts US manufacturing plans, warns China export controls threaten US chip lead
Nvidia (NVDA) CEO Jensen Huang touted the company's plans to manufacture its AI chips in the US, while warning against export controls that limit its ability to ship products to China. Huang made the comments during Nvidia's fiscal first quarter earnings call on Wednesday, saying that he expects the company to build everything from chips to supercomputers in America by the end of the year. To do that, Huang explained, Nvidia is working with Taiwanese companies ranging from TSMC and Foxconn to Winstron to manufacture its various components. "To encourage and support these investments, we've made substantial long-term purchase commitments, a deep investment in America's AI manufacturing future," Huang said during the call. Huang's statements come after President Trump criticized Apple for not moving iPhone manufacturing to America and threatened to add a 25% tariff to the company's products if it doesn't commit to such a move. While Huang said he agrees with Trump's desire to bring manufacturing back to the US, he warned against the administration's decision to ban Nvidia chip sales to China, saying that the AI platform that wins China is positioned to lead globally. 'China is one of the world's largest AI markets and a springboard to AI success,' Huang said, adding that China's AI will move on with or without US-made chips like Nvidia's. Nvidia announced that the Trump administration banned sales of its H20 chip to China in April and reported a $4.5 billion revenue impact in its first fiscal quarter. The company says it will also miss out on $8 billion worth of H20 revenue in its second quarter. What's more, Nvidia says it can no longer build chips on its Hopper platform to manufacture chips for China. The company's Hopper line is the predecessor to Nvidia's current Blackwell chips. Nvidia specifically designed the H20 to meet the Biden administration's restrictions on AI chips destined for China. But DeepSeek sent shockwaves through Washington and Wall Street when it proved it could produce powerful AI models using below top-of-the-line Nvidia chips. As a result, President Trump imposed tighter restrictions on the company's chips, banning the sale of H20s in the country. Huang, however, said it's not just about selling hardware into China. 'The AI race isn't just about chips,' he said, adding that the more important aspect of the US-China AI battle is the software stack that companies build on. Huang has previously laid out how important it is for Nvidia to continue to compete in China, explaining that the country has half of the world's AI developers and that driving those workers to build on Chinese chips would hurt not just Nvidia, but also the US' national security goals. Though Nvidia is unable to sell into China, it did win a reprieve from the Biden administration's planned AI diffusion rules. Those regulations would have created a three-tier system broken down by countries that can freely purchase chips, those that needed licenses to buy them, and those that were banned from ordering chips. But the Trump administration tossed out those rules before they were scheduled to go into place this month. Still, it plans to introduce its own regulations sometime in the future. Nvidia also benefited from Trump's visit to the Middle East, with the company set to sell hundreds of thousands of chips to Saudi Arabia and the United Arab Emirates, as part of those countries' own sovereign AI plans, or AI services operated and funded by governments rather than individual independent companies. Read more about Nvidia's earnings: Nvidia to report Q1 earnings as Middle East deals, export control reprieve boost stock How Nvidia 'played a central role' in the $306 billion AI startup boom Why Nvidia's rise could signal bad news for climate goals Nvidia's bear case: Is the hype train running out of tracks? Big Tech's spending drove Nvidia's rise Nvidia China revenue set to cross $6 billion in Q1 as investors brace for export ban impact 3 things Nvidia investors should look out for in its earnings call Nvidia earnings topped forecasts by 10% over past 2 years Email Daniel Howley at dhowley@ Follow him on X/Twitter at @DanielHowley. 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
CNA
19 hours ago
- Business
- CNA
Taiwan trims 2025 GDP growth forecast, cites US tariffs uncertainty
TAIPEI :Taiwan's trade-reliant economy is expected to grow at a slightly slower pace in 2025 than previously forecast, weighed down by uncertainty over possible U.S. tariffs. Taiwan is a key hub in the global technology supply chain for companies such as Apple and Nvidia, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC). Taiwan's gross domestic product for this year is now expected to be 3.1 per cent higher than last year, the agency said, revising downward the 3.14 per cent forecast it issued in February. That would also be lower than the 4.59 per cent growth rate for 2024. Exports this year are expected to grow 8.99 per cent, the agency said, upgrading a previous forecast of 7.08 per cent. For the first quarter of this year, GDP expanded by 5.48 per cent, the agency said, compared with a preliminary reading of 5.37 per cent. The first quarter's performance marked the fastest rate since the first quarter of 2024 when the economy expanded 6.64 per cent.
Reuters
19 hours ago
- Business
- Reuters
Taiwan trims 2025 GDP growth forecast, cites U.S. tariffs uncertainty
TAIPEI, May 28 (Reuters) - Taiwan's trade-reliant economy is expected to grow at a slightly slower pace in 2025 than previously forecast, weighed down by uncertainty over possible U.S. tariffs. Taiwan is a key hub in the global technology supply chain for companies such as Apple (AAPL.O), opens new tab and Nvidia (NVDA.O), opens new tab, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) ( opens new tab, . Taiwan's gross domestic product for this year is now expected to be 3.1% higher than last year, the agency said, revising downward the 3.14% forecast it issued in February. That would also be lower than the 4.59% growth rate for 2024. Exports this year are expected to grow 8.99%, the agency said, upgrading a previous forecast of 7.08%. For the first quarter of this year, GDP expanded by 5.48%, the agency said, compared with a preliminary reading of 5.37%. The first quarter's performance marked the fastest rate since the first quarter of 2024 when the economy expanded 6.64%. The statistics agency also slashed the 2025 consumer price index (CPI) forecast to 1.88% from the previous 1.94%.
