TSMC (TSM), TJX Companies (TJX) and Lowe's (LOW) take the attention of today's Big 3. Scott Bauer with @ProsperTradingAcademy turns to example options trades for all three names while Rick Ducat breaks down the technical trends.
Chipmaker TSMC said it aims to invest $100 billion in chip manufacturing plants in the U.S. over the next four years as part of an effort to expand the company's global network of semiconductor factories.
Semiconductor stocks have been in impressive form on the market over the past three years, as the demand for chips used for training and deploying artificial intelligence (AI) models in data centers has shot up remarkably during this period.
TSMC (TSM) reachead $180.53 at the closing of the latest trading day, reflecting a -0.31% change compared to its last close.
TSMC's market position and growth prospects remain unparalleled, with significant upside potential due to a lack of real competition. TSMC's Arizona fab is well-received, potentially mitigating geopolitical risks but may reduce margins due to higher labor costs. TSMC is undervalued at a 26x multiple, with a fair value estimate of 30x, suggesting a 93% upside by FY26.
Since my last writing, TSM's earnings have evolved more toward more advanced 3 nm and 5 nm technologies. This shift creates two critical advantages. It helps to expand profit margins and also reduces the normal seasonality for smartphones.
U.S. President Donald Trump's nominee to a post overseeing export policy for China on Thursday called a report about Taiwan Semiconductor Manufacturing Co producing hundreds of thousands of chips for Huawei "a huge concern."
Taiwan Economy Minister Kuo Jyh-huei said on Thursday that chipmaker TSMC would need government permission for any overseas joint ventures, but the government will not interfere in its decisions.
When it comes to artificial intelligence (AI) chip stocks, my guess is that names such as Nvidia, Broadcom, or Advanced Micro Devices come to mind first. While all three companies are playing an integral role supplying data centers with the latest AI hardware, these chip designers have to give a lot of credit to the foundry services of Taiwan Semiconductor Manufacturing (TSM -1.19%).
Having risen 49.56% in the last 12 months to its press time price of $192.33, it can hardly be said that Taiwan Semiconductor Manufacturing (NYSE: TSM) has been a poor performer during the ongoing artificial intelligence (AI) boom.
With a discounted valuation relative to its growth trajectory and a multi-year AI-driven demand cycle underway, TSM presents a compelling investment option.
Zacks.com users have recently been watching TSMC (TSM) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.