Latest news with #TaiwanSemiconductor


Business Insider
a day ago
- Business
- Business Insider
BKNG, TSMC, and CAT: The 3 Stocks Immune to This Year's Market Volatility
The first half of 2025 was a gauntlet for markets. U.S.-China trade tensions reignited with tariffs averaging 15.8% by June, the highest since 1936, threatening to push consumer prices higher. Geopolitical flare-ups in the Middle East sent oil prices on a rollercoaster ride, while supply chain snags persisted. Moreover, inflation, while down from 2024's 2.9% to 2.7% by June, still hovers above the Fed's 2% target, with core inflation at 2.9% signaling persistent pressures. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. A tech sector correction and a volatile VIX added to the chaos. Yet, Booking Holdings (BKNG), Taiwan Semiconductor (TSM), and Caterpillar (CAT) powered through, hitting all-time highs. Here's why these three stocks are shining at the midway point of 2025, despite the chaotic market events that have unfolded over that time. Booking Holdings (NYSE:CAT) | Travel's Comeback King Booking Holdings is currently riding a wave of wanderlust, with its stock surging 15% year-to-date, hitting record highs, after its already 40%+ rally last year. Analysts at J.P. Morgan raised their price target to $6,000 in June, citing solid travel demand, with Q1 gross bookings up 10.2% year-over-year to $43.5 billion. As we advance, growth is expected to be powered by strong hotel and alternative accommodation bookings. Then you have their AI-driven personalization potential, such as tailored trip suggestions, which is likely to unlock significant value, thus keeping investors excited. All of this momentum, of course, is powered by a durable post-COVID rebound in global travel, especially in the Asia-Pacific region, where bookings grew 15% year-over-year, and a push into experiences, such as tours and activities, which now accounts for 12% of revenue. However, there are some headwinds, including rising fuel costs and foreign exchange fluctuations, which could put pressure on margins. I would also flag stiff competitive pressures from Airbnb (ABNB). Still, Booking's scale, with 1.8 million properties across its platforms, and data-driven edge make it a powerhouse in a world itching to explore. At 26 times this year's expected EPS, the valuation isn't crazy either. Is BKNG a Buy, Hold, or Sell? Currently, most analysts covering BKNG stock are bullish. The stock now carries a Moderate Buy consensus rating, based on 18 Buy and eight Hold ratings assigned over the past three months. Notably, no analyst has assigned the stock a sell rating. However, BKNG's average stock price target of $5,605.52 implies ~1% downside over the next twelve months, suggesting that Wall Street believes BKNG is already priced to perfection. TSMC (NYSE:TSM) | The Chipmaker of Tomorrow's World Taiwan Semiconductor is the backbone of the AI revolution, so it's not surprising its stock is up 25% year-to-date. The company's Q2 profit soared 61% to NT$361.56 billion (~$12.3 billion), with June revenue up 26.9% and first-half sales climbing 40%. Needham raised its price target to $270, citing AI chip demand through 2027, while Barclays has raised its target to $275 with a Strong Buy rating. Morgan Stanley views TSMC's 30% revenue growth forecast for 2025 as a buy signal, although Bernstein has trimmed its target to $249 due to a stronger Taiwan dollar. Overall, TSM's prospects remain excellent. The company dominates the global chip foundry market with a 60% share and accounts for 90% of advanced chip production, supplying giants such as Nvidia (NVDA) and Apple (AAPL). Their 3nm chips, which account for 22% of Q1 revenue, are fueling AI's rise. To counter tariff risks, such as the 32% tariffs Taiwan faces, they're expanding into Japan and the U.S., thereby bolstering supply chain resilience. Currency headwinds and trade tensions could pose challenges, but TSM's grip on cutting-edge technology keeps it indispensable. At 25x forward consensus EPS estimates, the stock remains attractively priced, in my view, especially considering that it is no longer a cyclical company, given the long-term tailwinds AI brings to the semiconductor space. Is TSMC a Good Stock to Buy? TSM is currently covered by six Wall Street analysts, all of whom hold a bullish outlook. The stock carries a Strong Buy consensus rating with all six analysts assigning a Buy rating over the past three months. TSM's average price target of $254.33 suggests ~3.5% upside potential over the next twelve months. Caterpillar (NYSE:CAT) | Digging Deep in a Shifting Economy Caterpillar is the quiet industrial giant, grinding out a 16% stock gain thus far this year despite economic headwinds. Its Q1 revenue rose 5% year-over-year, with strong margins in the Energy & Transportation segment. Additionally, J.P. Morgan raised its price target to $475 from $395 in July, citing global infrastructure spending and favorable legislative tailwinds, such as bonus depreciation, which are expected to benefit the stock. Demand in emerging markets, particularly for mining and power generation, continues to drive cash flow, and that trend doesn't seem to be fading away anytime soon. CAT's strength lies in its diversified portfolio, which ranges from bulldozers to generators, and capitalizes on global projects. Their pricing power offsets rising steel costs, though supply chain hiccups and softening U.S. demand pose risks. Still, their push into sustainable technology, like electric construction equipment, positions them for growth. I don't think Caterpillar is a cyclical industrial play, but a bet on a world that's always building. At 22x this year's expected earnings, CAT stock isn't exactly a value play, but I don't believe it's expensive either. Is Caterpillar a Buy or Sell? On Wall Street, CAT stock carries a Moderate Buy consensus rating based on eight Buy and six Hold ratings. Notably, no analyst rates the stock a sell. CAT's average stock price target of $410.43 implies roughly 2% downside potential over the next twelve months. Final Thoughts Despite a rocky macro backdrop, Booking, TSMC, and Caterpillar are proving that strong fundamentals and clear structural tailwinds can still drive outperformance. Whether it's surging travel demand, the unstoppable rise of AI, or global infrastructure buildouts, each company is leaning into its edge. Risks abound, from tariffs to FX shocks, but market leadership in today's climate isn't about perfection; it's about resilience. In a jittery market, investors seem to be rewarding clarity, scale, and execution, and these three names boast all these qualities in abundance.
Yahoo
a day ago
- Business
- Yahoo
NVDA vs. TSM: Which Semiconductor Stock Is the Better AI Investment?
NVIDIA Corporation NVDA and Taiwan Semiconductor Manufacturing Company TSM, also known as TSMC, are two of the most important companies in the global AI chip supply chain. NVIDIA designs the powerful graphics processing units (GPUs) that run advanced AI models, while Taiwan Semiconductor manufactures those chips using its leading-edge process technologies. Both companies are critical to AI infrastructure, but which one offers the better investment opportunity right now? Let's break it down by looking at their financial performance, challenges and growth outlook. The Case for NVIDIA NVIDIA is at the center of AI computing, with its products widely used across data centers, gaming and autonomous vehicles. The company continues to see strong demand from cloud providers, enterprises and startups building AI systems. In the first quarter of fiscal 2026, NVIDIA's data center revenues rose 73% year over year to $39.1 billion, showing the strength of this part of its business. Its newer Hopper 200 and Blackwell GPU platforms are being adopted quickly as customers work to grow their AI infrastructure. Much of this demand comes from large cloud providers that depend on NVIDIA GPUs for their AI workloads. The Blackwell architecture promises significantly higher performance, and upcoming versions like Blackwell Ultra and Vera Rubin are expected to strengthen NVIDIA's position further as AI demand keeps growing. However, the company faces near-term challenges from export restrictions. New U.S. rules stopped NVIDIA from selling its H20 chips to China, leading to lost sales of $2.5 billion in the first quarter. NVIDIA expects to lose another $8 billion in H20 sales during the second quarter. These restrictions are already slowing NVIDIA's growth. The company's revenue forecast for the second quarter is $45 billion, implying a modest 2% sequential increase, well below the double-digit growth it has posted in the previous nine quarters. While NVIDIA's long-term prospects are still strong, near-term uncertainty has clearly increased. The Case for Taiwan Semiconductor TSM manufactures chips for the world's top tech companies, including NVIDIA, Advanced Micro Devices and Broadcom. Taiwan Semiconductor is known for its advanced production capabilities and has already moved into 3nm production, with 2nm coming soon. Its large scale allows it to handle rising AI chip demand better than most competitors. In the second quarter of 2025, Taiwan Semiconductor Manufacturing reported a 39% increase in revenues and a 61% jump in profit. Its 3nm and 5nm chips accounted for nearly 60% of wafer sales. AI-related revenues tripled in 2024 and are expected to double again in 2025. With AI likely to be a long-term driver, TSMC's future growth potential looks strong. Buoyed by strong demand for its 3nm and 5nm chips, Taiwan Semiconductor raised its revenue growth guidance for full-year 2025 to 30% from mind-20% projected earlier. For the third quarter, TSMC expects revenues in the range of $31.8-$33 billion, calling for a sequential increase of 6%-10%. Taiwan Semiconductor is also investing heavily to stay ahead. It plans to spend up to $42 billion in 2025, mostly on advanced manufacturing. This is up from $29.8 billion in 2024 and shows its commitment to keeping its lead in cutting-edge chip production. NVDA vs. TSM: EPS Estimate Trends The Zacks Consensus Estimate projects NVIDIA's earnings per share (EPS) to rise 42.1% in fiscal 2026 and 32.1% in fiscal 2027. Over the past seven days, earnings estimates have been revised upward, showing strong confidence. Image Source: Zacks Investment Research The consensus mark for Taiwan Semiconductor's earnings also demonstrates strong growth ahead. EPS is expected to grow 34.7% in 2025 and 15.2% in 2026. The EPS estimate trend for TSMC has been moving upward over the last 30 days. Image Source: Zacks Investment Research NVDA vs. TSM: Price Performance & Valuation Check Shares of NVIDIA and Taiwan Semiconductor have performed well so far in 2025 despite severe market volatility due to macro uncertainty and geopolitical tension. NVIDIA shares have risen 28.9% year to date, while Taiwan Semiconductor has soared 24.1%. Image Source: Zacks Investment Research On the valuation front, Taiwan Semiconductor trades at a more reasonable level. Its price-to-earnings (P/E) multiple is 23.93X, far below NVIDIA's 35.57X. This suggests that TSM offers better value relative to its growth potential. Image Source: Zacks Investment Research TSM: A Better Bet Than NVDA While NVIDIA continues to lead in AI chip design and has a powerful product roadmap, it also faces short-term hurdles, especially from export restrictions that limit its access to the massive Chinese market. Its stock is also more expensive, leaving less room for upside if growth slows. Meanwhile, Taiwan Semiconductor sits at the core of the AI chip supply chain with less geopolitical risk and a more reasonable valuation. Its growth outlook is strong, backed by rising AI demand and major investments in future technology. For investors looking for a solid AI play with a better risk-reward balance, Taiwan Semiconductor is the smarter choice today. TSM carries a Zacks Rank #2 (Buy), making it a clear winner over NVDA, which has a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 NVIDIA Corporation (NVDA) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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 Standard
2 days ago
- Business
- Business Standard
China's Shanghai Composite index hits thre year high
Asian stocks gave up early gains to end mixed on Friday as tariff-related worries offset encouraging tech earnings and positive U.S. economic data. The dollar index pulled back slightly after Federal Reserve Governor Christopher Waller said policymakers should cut interest rates this month to counter rising growth and job market risks. Gold edged up slightly on dollar weakness while oil held a gain on brewing Middle East tensions and data signaling strong U.S. demand. China's Shanghai Composite index rose half a percent to 3,534.48 amid expectations the government may roll out more stimulus to boost domestic demand. Meanwhile, according to a statement from the Chinese commerce ministry released today, China has called on the United States to abandon zero-sum thinking and continue to lift "unjustified" trade and economic restrictions. Hong Kong's Hang Seng index rallied 1.33 percent to 24,825.66 buoyed by a positive outlook from Taiwan Semiconductor and strong earnings from Netflix. Chinese Shanghai Composite index and Hong Kong's Hang Seng index both hit three-year highs today.


Bloomberg
2 days ago
- Business
- Bloomberg
Bloomberg Daybreak Asia: Stocks Edge Higher; Japan's Inflation Remains Elevated
Asian stocks made a modest gain at the open Friday as a global equity rally gained fresh vigor on strong economic data that eased concerns about the US economy. The MSCI Asia Pacific Index rose 0.2% at the open. Equity-index futures for US gained after the S&P 500 and Nasdaq 100 set closing highs Thursday. Tech stocks rose as a bullish outlook from Taiwan Semiconductor Manufacturing Co. bolstered confidence in artificial-intelligence spending. Netflix Inc. also reported strong earnings and raised its forecast. We get market insights from Brian Vendig, Chief Investment Officer at MJP Wealth Advisors. Plus - Japan's key price measure cooled a tad more than expected while remaining well above the Bank of Japan's target, keeping pressure on Prime Minister Shigeru Ishiba to mollify voters as he heads into Sunday's national election. Consumer prices excluding fresh food rose 3.3% from a year earlier in June, slowing from a 3.7% gain - a two-year high - in the previous month, the Ministry of Internal Affairs and Communications reported Friday. We get reaction from former BOJ board member Sayuri Shirai, now Professor of Economics at Keio University. She speaks with Bloomberg's Shery Ahn and Haidi Stroud-Watts on The Asia Trade.


Washington Post
2 days ago
- Business
- Washington Post
How major US stock indexes fared Thursday, 7/17/2025
Wall Street rose to more records following some better-than-expected updates on the economy. The S&P 500 climbed 0.5% Thursday, beating the all-time high it set last week. The Dow Jones Industrial Average added 0.5%, and the Nasdaq composite gained 0.7%. PepsiCo jumped 7.5% after delivering revenue and profit that topped Wall Street's expectations. A strong profit report from Taiwan Semiconductor Manufacturing Co. lifted tech stocks. That helped offset drops for some big health care companies following their latest profit reports.