Latest news with #TaiwanSemiconductor
Yahoo
5 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
Yahoo
3 days ago
- Business
- Yahoo
Billionaire Stanley Druckenmiller Just Loaded Up on My Favorite Artificial Intelligence (AI) Stock
The Duquesne Family Office purchased Taiwan Semiconductor shares in Q1. TSMC is expected to deliver strong growth over the next five years. The stock still trades at an attractive valuation. 10 stocks we like better than Taiwan Semiconductor Manufacturing › Individual investors should monitor the activities of some of the most successful investors. Billionaire hedge fund managers have access to more resources and information than individual investors, and following them is a great way to confirm decisions you've already made or generate ideas. One billionaire I follow is Stanley Druckenmiller, who runs the Duquesne Family Office. Every quarter, funds with more than $100 million in holdings must report their holdings at the end of the quarter. Then that information is made available to the public 45 days later in a 13-F form. The latest round of those was released on May 15 and included some valuable information. The Duquesne Family Office loaded up on my favorite way to invest in the artificial intelligence (AI) arms race: Taiwan Semiconductor (NYSE: TSM), also referred to as TSMC. I think this is a genius move by Druckenmiller. The Duquesne Family Office didn't just buy some shares of TSMC; it loaded up. Prior to Q1, it owned just over 100,000 shares of the company. It has massively increased its position this quarter and now owns just shy of 600,000 shares. Its TSMC stake now makes up about 3.33% of its total holdings and is one of its 10 largest positions. So what makes it so bullish on Taiwan Semiconductor? TSMC is the world's largest contract chip manufacturer, able to produce chips based on the unique designs of its customers. This is a mutually beneficial relationship, as this way clients don't need to maintain factories or spend resources on developing chip manufacturing technology, and TSMC doesn't need to design or market its chips. Based on how TSMC is positioned, the company doesn't need a winning AI technology to win the AI arms race; it just needs its clients to spend heavily on the computing power that fuels it. An investment in TSMC is a bet that the world will use more computing power and more advanced chips over time. That's a no-brainer, which is why the company is at the top of my list for best AI stocks in which to invest. Because of Taiwan Semiconductor's unique position of being a chip supplier to nearly every company involved in the AI arms race, it has unparalleled access to information about demand. Chip orders are placed years in advance, as evidenced by TSMC's Arizona factory already selling out production through 2027. So when management gives a projection, investors would be wise to listen. TSMC's management believes that AI demand will be so strong that its AI-related revenue will grow at a 45% compounded annual growth rate (CAGR) over the next five years. Overall revenue should increase at nearly a 20% CAGR, providing outstanding growth for investors. All of this information contributes to the Duquesne Family Office loading up on shares during Q1, but the last date at which it could have made this purchase was March 31, when the markets hadn't recovered from tariff-induced fears. So is it still a good buy now? Despite Taiwan Semiconductor's stock recovering in the past few weeks, it's still trading at a fairly attractive valuation. At less than 21 times forward earnings, TSMC trades at a discount to the broader market, as measured by the S&P 500 (SNPINDEX: ^GSPC), which trades for around 22.1 times forward earnings. Although you can't buy TSMC stock for as little as you could just a few weeks ago, it's still cheaper than the broader market and is expected to grow its revenue much faster than the market rises (around 10% per year). That's a recipe for a market-beating stock, which makes Taiwan Semiconductor a smart buy here. 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 $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor's total average return is 982% — 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 19, 2025 Keithen Drury has positions in Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. Billionaire Stanley Druckenmiller Just Loaded Up on My Favorite Artificial Intelligence (AI) Stock 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
Bloomberg
3 days ago
- Business
- Bloomberg
TSMC Evaluates Building Advanced Chip Plant in the UAE
Taiwan Semiconductor Manufacturing Co. is evaluating building an advanced production facility in the United Arab Emirates and has discussed the possibility with officials in President Donald Trump's administration, according to people familiar with the matter, a potentially major bet on the Middle East that would only come to fruition with Washington's approval. The company has had multiple meetings in recent months with Steve Witkoff, the US special envoy to the Middle East, and officials from MGX, an influential investment vehicle overseen by the UAE president's brother, the people said. Those conversations are a continuation of talks that began under President Joe Biden's administration but had died down by the end of his term.
Wall Street Journal
6 days ago
- Business
- Wall Street Journal
TSMC to Set Up Chip Design Hub in Germany
Taiwan Semiconductor Manufacturing Co. said it would establish a new chip-design center in Munich, Germany, a win for the European Union as Brussels seeks to become more self-sufficient in the production of semiconductors. TSMC 2330 -1.13%decrease; red down pointing triangle, the world's largest contract chip maker, said the facility would design high-performance and energy-efficient chips to be used across the automotive and industrial sectors as well as artificial intelligence.
Yahoo
25-05-2025
- Business
- Yahoo
4 Reasons to Buy Taiwan Semiconductor Manufacturing Stock Like There's No Tomorrow
Taiwan Semiconductor is building factories in key markets around the globe. Management is preparing to meet huge demand over the next five years. The market hasn't given the chipmaker the premium valuation it deserves. 10 stocks we like better than Taiwan Semiconductor Manufacturing › Taiwan Semiconductor Manufacturing (NYSE: TSM) is currently one of my top stock picks. Although there are concerns about Taiwan's geographical location, the company is taking steps to ease them. While it's doing that, there's a massive demand for chips, and TSMC is rolling out new technology later this year and next to meet that need. If you weren't aware already, TSMC makes the actual chips for most all the biggest semiconductor companies. Because of that neutral stance in the chip world, I think it's one of the best ways to play nearly every technological trend. When you trace almost every technology back to its chip roots, many roads lead to TSMC, which is why I'm so bullish. I've got four reasons investors should buy Taiwan Semiconductor's stock like there's no tomorrow, although there are likely many more out there. Two risks are typically discussed when discussing TSMC's stock: tariffs and China. There's a fear that China could take over Taiwan, but this move would send markets around the world into disarray. Tariffs are another concern, but currently there aren't any on semiconductors. While these two fears may not be an issue now, that doesn't mean they won't be in the future. To get ahead of that, Taiwan Semiconductor is diversifying its global footprint. It already has a $65 billion facility in the U.S., but it's deploying an additional $100 billion to build even more production capacity. TSMC is also building facilities in Germany and Japan, which helps decrease the risk of generating nearly all of its revenue from Taiwan. By increasing U.S. production, it's also decreasing its chances of being affected by tariffs. The demand for U.S.-produced chips is already high, and the Arizona facility has already sold out production capacity through 2027. Taiwan Semiconductor is making smart moves by investing in areas outside of Taiwan. This reduces a ton of risk with the stock. Although TSMC already has industry-leading 3 nanometer chips available, it's slated to launch 2nm and 1.6nm chips in late 2025 and 2026, respectively. While these chips can be configured to have greater speed, power consumption is the real innovation with these two technologies. When configured at the same speed level as 3nm chips, 2nm chips will see a 20% to 30% improvement in power consumption, and 1.6 nm chips will see a 15% to 20% improvement on top of that. Power consumption is a massive cost for operating data centers, and any technology that can improve this will be incredibly popular. This could be a huge growth driver for TSMC, as companies may find upgrading to computing units with 2nm or 1.6nm chips more cost-effective than running power-hungry older generations. Many tailwinds are blowing in TSMC's favor. The combination of new technology and an increasingly intense AI arms race has caused demand for TSMC's chips to boom. Management has discussed this at length during its conference calls, leading it to give investors guidance that AI-related chip revenue will grow around a 45% compound annual growth rate (CAGR) over the next five years. Companywide, it expects its revenue CAGR to approach 20%. That's monster growth over five years, and if management slightly exceeds expectations and delivers a 20% revenue CAGR, its revenue will increase by nearly 150%. Few companies can deliver that kind of growth, and if TSMC delivers on those projections, it will be a must-own stock. Typically, when a stock is projected to grow at a market-beating rate over a considerable time period, it trades at a premium to the broader stock market. However, that's not the case with Taiwan Semiconductor's stock. At just shy of 21 times forward earnings, TSMC's stock is cheaper than the S&P 500, which trades for around 22 times forward earnings. This means that Taiwan Semi's stock isn't priced at a premium, and investors can have confidence that they're not overpaying. Taiwan Semiconductor has multiple strong reasons to buy the stock now. With the stock priced at the market average, it looks like one investors can buy like there's no tomorrow. 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 $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% 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 19, 2025 Keithen Drury has positions in Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. 4 Reasons to Buy Taiwan Semiconductor Manufacturing Stock Like There's No Tomorrow 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
