Latest news with #TaiwanSemi
Globe and Mail
2 days ago
- Business
- Globe and Mail
Should You Invest $1,000 in Taiwan Semiconductor Stock Today?
During the month of May, stocks started exhibiting some much-needed resilience. The S&P 500 and Nasdaq Composite indexes rose by 5% and 8%, respectively. After bearing the brunt of precipitous sell-offs early this year, semiconductor stocks have started to stage a comeback. Last month, shares of Nvidia and Broadcom climbed by more than 20%, while Advanced Micro Devices surged by roughly 15%. Lagging behind the usual suspects, however, was Taiwan Semiconductor Manufacturing (NYSE: TSM). While the stock's 12% gains beat the broader market, they still trail the chip industry's leading names. Below, I'll delve into why Taiwan Semi looks like a great buy right now. From there, I'll illustrate how a $1,000 investment could wind up being a multibagger for patient, disciplined investors. A hidden gem in a sea of semiconductor stocks Nvidia and AMD design chipsets known as graphics processing units (GPU). GPUs have the capability to run sophisticated calculations at fast speeds, which gives them an edge over traditional compute processes when it comes to developing generative AI applications. Cloud hyperscalers such as Microsoft, Alphabet, and Amazon, as well as big tech giants Meta Platforms and Oracle, have been buying GPUs in droves over the last few years in an effort to build out data centers and infrastructure services. While the robust demand for chips directly benefits Nvidia and AMD, Taiwan Semi has been an indirect beneficiary of these tailwinds. The reason? Because Taiwan Semi specializes in foundry services that actually manufacture the chip designs from Nvidia, AMD, and many others. In other words, the largest data center businesses in the world rely heavily on Taiwan Semi's fabrication business. Taiwan Semi is positioned for monster growth In the chart below, I've illustrated Taiwan Semi's revenue, gross profit, and net income over the last three years. As the slopes of the lines indicate, TSMC's sales and profitability profile are both steepening. TSM Revenue (TTM) data by YCharts To me, this signals two things. First, demand for chips is on the rise -- hence the revenue line is rising. However, the more lucrative trend is that gross margin and net income are accelerating in parallel with sales. This suggests that Taiwan Semi has achieved a fair degree of pricing power relative to competitors such as Intel. Considering AI infrastructure spend is expected to eclipse multiple trillions over the next five years, I don't see Taiwan Semi's growth prospects decelerating anytime soon. Should you invest $1,000 in TSMC stock? It's worth noting that technology investors Cathie Wood and Stanley Druckenmiller each recently added Taiwan Semi stock to their firms' respective portfolios. While blindly following institutional capital flows isn't necessarily a prudent strategy, I do think TSMC's long-term prospects earn some more credibility thanks to the recent buys by such prominent investors. In the chart below, I've illustrated how a $1,000 investment in Taiwan Semi stock 10 years ago is now worth approximately $8,500. Achieving almost a tenfold return in 10 years is impressive -- even for a growth stock. TSM data by YCharts There are a couple of important ideas to take away from the chart above. First, the trends clearly show that like many of its peers, TSMC stock has kicked into a new gear over the last couple of years thanks to a bullish AI narrative. Hence, the share price gains following the sell-off in 2022 appear overly pronounced. Here's the thing, though: Had you invested $1,000 in Taiwan Semi stock on Nov. 30, 2022 (the day ChatGPT was commercially launched), you would have doubled your money. This underscores the idea that holding on to a stock for long-term periods (i.e. 10 years or more) can lead to outsized gains compared to shorter-term, volatile periods. I think now is a great time to invest $1,000 in Taiwan Semi stock. The company's future growth prospects are arguably far more robust than they were 10 years ago, making now an interesting time to begin accumulating shares for a long-run position. Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now? Before you buy stock in Taiwan Semiconductor Manufacturing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor 's total average return is792% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Alphabet, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Meta Platforms, Microsoft, Nvidia, Oracle, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
2 days ago
- Business
- Yahoo
Should You Invest $1,000 in Taiwan Semiconductor Stock Today?
Taiwan Semiconductor specializes in foundry services that bring chip designs from Nvidia and others to life. Industry estimates suggest that spending on AI infrastructure will continue rising over the next five years. Investing $1,000 in TSMC stock and holding for the long haul has the potential to generate multibagger gains. 10 stocks we like better than Taiwan Semiconductor Manufacturing › During the month of May, stocks started exhibiting some much-needed resilience. The S&P 500 and Nasdaq Composite indexes rose by 5% and 8%, respectively. After bearing the brunt of precipitous sell-offs early this year, semiconductor stocks have started to stage a comeback. Last month, shares of Nvidia and Broadcom climbed by more than 20%, while Advanced Micro Devices surged by roughly 15%. Lagging behind the usual suspects, however, was Taiwan Semiconductor Manufacturing (NYSE: TSM). While the stock's 12% gains beat the broader market, they still trail the chip industry's leading names. Below, I'll delve into why Taiwan Semi looks like a great buy right now. From there, I'll illustrate how a $1,000 investment could wind up being a multibagger for patient, disciplined investors. Nvidia and AMD design chipsets known as graphics processing units (GPU). GPUs have the capability to run sophisticated calculations at fast speeds, which gives them an edge over traditional compute processes when it comes to developing generative AI applications. Cloud hyperscalers such as Microsoft, Alphabet, and Amazon, as well as big tech giants Meta Platforms and Oracle, have been buying GPUs in droves over the last few years in an effort to build out data centers and infrastructure services. While the robust demand for chips directly benefits Nvidia and AMD, Taiwan Semi has been an indirect beneficiary of these tailwinds. The reason? Because Taiwan Semi specializes in foundry services that actually manufacture the chip designs from Nvidia, AMD, and many others. In other words, the largest data center businesses in the world rely heavily on Taiwan Semi's fabrication business. In the chart below, I've illustrated Taiwan Semi's revenue, gross profit, and net income over the last three years. As the slopes of the lines indicate, TSMC's sales and profitability profile are both steepening. To me, this signals two things. First, demand for chips is on the rise -- hence the revenue line is rising. However, the more lucrative trend is that gross margin and net income are accelerating in parallel with sales. This suggests that Taiwan Semi has achieved a fair degree of pricing power relative to competitors such as Intel. Considering AI infrastructure spend is expected to eclipse multiple trillions over the next five years, I don't see Taiwan Semi's growth prospects decelerating anytime soon. It's worth noting that technology investors Cathie Wood and Stanley Druckenmiller each recently added Taiwan Semi stock to their firms' respective portfolios. While blindly following institutional capital flows isn't necessarily a prudent strategy, I do think TSMC's long-term prospects earn some more credibility thanks to the recent buys by such prominent investors. In the chart below, I've illustrated how a $1,000 investment in Taiwan Semi stock 10 years ago is now worth approximately $8,500. Achieving almost a tenfold return in 10 years is impressive -- even for a growth stock. There are a couple of important ideas to take away from the chart above. First, the trends clearly show that like many of its peers, TSMC stock has kicked into a new gear over the last couple of years thanks to a bullish AI narrative. Hence, the share price gains following the sell-off in 2022 appear overly pronounced. Here's the thing, though: Had you invested $1,000 in Taiwan Semi stock on Nov. 30, 2022 (the day ChatGPT was commercially launched), you would have doubled your money. This underscores the idea that holding on to a stock for long-term periods (i.e. 10 years or more) can lead to outsized gains compared to shorter-term, volatile periods. I think now is a great time to invest $1,000 in Taiwan Semi stock. The company's future growth prospects are arguably far more robust than they were 10 years ago, making now an interesting time to begin accumulating shares for a long-run position. Before you buy stock in Taiwan Semiconductor Manufacturing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Taiwan Semiconductor Manufacturing wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Alphabet, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Meta Platforms, Microsoft, Nvidia, Oracle, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Should You Invest $1,000 in Taiwan Semiconductor Stock Today? was originally published by The Motley Fool
Yahoo
30-05-2025
- 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
17-05-2025
- Business
- Yahoo
Prediction: Taiwan Semiconductor Stock Could Surge by 129% in the Next 5 Years
Management has a great view of what future growth looks like. Taiwan Semi is building more chip capacity in the U.S. The stock trades right at its five-year average valuation mark. 10 stocks we like better than Taiwan Semiconductor Manufacturing › The market is a forward-looking machine, so knowing where a stock is heading is key to investing success. While price targets are always estimates, it's good to know your acceptable rate of return for an investment. That way, you'll know if your stock-picking process is working. One stock that I'm extremely confident in is Taiwan Semiconductor (NYSE: TSM). I'm confident that this stock will not only beat the market over the next five years, it will crush it. But where did I get my estimate of a 129% gain in five years? It's fairly obvious when you listen to management speak. Taiwan Semiconductor is the world's largest chip foundry. Its clients are among the biggest tech companies in the world, including Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA). When you hear about companies like these two designing their own chip, they are designing it, but the manufacturing process is most likely farmed out to TSMC. This is a great relationship, as big tech companies don't need to maintain expensive facilities and employ thousands of workers whose only expertise is chip production. In return, TSMC provides best-in-class technology and execution. Right now, TSMC can produce 3nm (nanometer) chips, which few other foundries can. It's also working toward 2nm chips slated to be launched later this year and 1.6nm chips for 2026. TSMC has cemented itself as a great partner by continuously innovating and offering cutting-edge technology. Because chip orders are often placed years in advance, TSMC's management has unparalleled insight into the company's future. So, when it speaks, investors should listen. Over the next five years, management expects AI-related revenue to grow at a 45% compound annual growth rate (CAGR), with overall revenue nearing a 20% CAGR. That's strong growth, but what does that mean for the stock? At the end of 2024, Taiwan Semiconductor produced $90.1 billion in revenue. If TSMC produced an 18% growth rate (near 20% as management has guided for), that figure would rise to $206 billion -- a 129% rise. That's well over a double in under five years. As long as TSMC can maintain its margins and isn't valued at an absurd starting valuation, assuming that its stock price will increase by a similar amount is not unreasonable. Because Taiwan Semi is a sole source supplier for many of these companies, it's unlikely that it will need to compress its margins over the next few years. However, tariffs could shake up this assumption if its customers are unwilling to absorb some of the costs. One thing to note is that semiconductors are currently exempt from "reciprocal" tariffs, although U.S. President Donald Trump has stated that this arrangement will be revisited. Taiwan Semi has already gotten ahead of this threat, announcing a $100 billion investment to increase manufacturing capabilities in the U.S. While some say this $100 billion investment equals being strong-armed by Trump, both TSMC's CEO and Taiwan's president have denied this, pointing to the fact that TSMC's existing Arizona production facility has sold out capacity through 2027. Regardless, Trump's getting what he wanted by moving more production stateside. Furthermore, the $100 billion investment won't affect Taiwan's income statement. That expense is only recognized through depreciation in subsequent years. One area that might take a hit is its operating expenses, as TSMC will have to hire staff before actual chip production, which will decrease its margins. However, that factor will eventually disappear once the production facilities are up and running. As a result, TSMC's profit margin may dip within the five-year timeframe, but it should return to its current levels by the end. Moving to valuation, Taiwan Semi's stock trades at almost exactly its five-year average price-to-earnings (P/E) level. This gives me confidence that TSMC's stock isn't overpriced at these levels, and that any future growth will not be due to earnings expansion. Taiwan Semiconductor is in an excellent position to capitalize on the AI boom and many other technological trends. Management has a great view of the future of chip demand, which leads me to believe that Taiwan Semiconductor's stock can more than double over the next five years. Before you buy stock in Taiwan Semiconductor Manufacturing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Taiwan Semiconductor Manufacturing wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $635,275!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,385!* Now, it's worth noting Stock Advisor's total average return is 967% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Keithen Drury has positions in Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. Prediction: Taiwan Semiconductor Stock Could Surge by 129% in the Next 5 Years was originally published by The Motley Fool 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
CNBC
09-05-2025
- Business
- CNBC
What TSMC's April chips sales tell us about Nvidia and the AI investment trade
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Market update: The S & P 500 was slightly lower on Friday. The muted action wraps up a week filled with major headlines: corporate earnings, Apple is exploring AI search and what that could mean for Google, a Federal Reserve meeting, a U.S. trade deal with the UK, and upcoming talks with China. Despite the flurry of news, the index ended the week pretty much at the same level as where it started, a sign that the market needed some time to digest its historic comeback over the past few weeks. We continue to point to the S & P Oscillator as the signal that indicated the recent rally was due for a pause. On the bright side, the market is going out the week less overbought than where it entered. TSMC's read-through to Nvidia : Shares of the world's largest semiconductor manufacturer Taiwan Semi were higher Friday after the company reported better-than-expected sales April sales — up 22.2% month over month and 48.1% year over year. These strong results suggest that the AI infrastructure ramp remains in full swing, though it's unclear if some of April's growth was driven by customers accelerating purchases to avoid tariffs or changes in trade policy. Taiwan Semi is Nvidia's primary chip supplier, so an increase in its sales is generally seen as a positive indicator for Nvidia as well. Nvidia traded lower on Friday, but is on pace for a positive week. On Friday, Reuters reported that Nvidia plans to release a downgraded version of its H20 AI chips for China in the next two months that are compliant with U.S. export restrictions. The stock probably isn't moving on this report because a similar story was reported by The Information last week. It also remains unclear how these dumb-downed chips for China stack up against local competition from Huawei, but our inclination is to say that customers will always take as many Nvidia chips as they can get. Other tariff and trade restrictions remain an overhang . A spokesperson for Nvidia declined to comment to the Club on the Reuters report. Next week : Earnings slow down next week with only about 9 companies in the S & P 500 scheduled to report and zero in the portfolio. The two most notable companies are Cisco and Walmart . Cisco's results will give us a view into the state of enterprise spending, while Walmart results will tell us how consumer spending is holding up. On the data side, it's inflation week with both the consumer price index (CPI) and producer price index (PPI) reports. We'll also see April retail sales and University of Michigan consumer sentiment and inflation expectations. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. Nvidia CEO Jensen Huang speaks during the Hill & Valley Forum at the US Capitol Visitor Center Auditorium in Washington, DC, on April 30, 2025. Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street.
