Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
In a market landscape clouded by recession fears, sell-offs and rebounds, Macquarie has identified 10 Asian stocks it believes are primed for a comeback.
TSMC's revenue growth could accelerate in the future thanks to the secular growth in the semiconductor market. The stock has outperformed the broader market handsomely in the past five years, a trend that's likely to continue in the next five years as well.
TSMC is already working on its next chip generation. Management raised revenue guidance during its last quarter.
TSMC is not the only chip stock facing geopolitical risks. The company has typically traded at a lower valuation than its largest customers and will likely continue to do so.
TSM has proven yet again why it is the clear global foundry winner during the AI boom, as observed in its growing wins, expanding gross margins, and higher market shares. Combined with the excellent 2nm demand/ yields and raised capex guidance, it is apparent that we remain in the early innings of sustainable growth. The recent meltdown has been great indeed, offering the chance for opportunistic investors to add/ dollar cost average with AI-related demand still structurally robust.
TSMC (TSM) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
How much demand is there for AI solutions?
Taiwan Semiconductor Manufacturing (NYSE: TSM ), the world's largest chip manufacturer, reported very strong second-quarter results and is clearly benefiting tremendously from the proliferation of artificial intelligence. Moreover, the valuation of Taiwan Semiconductor stock is undemanding while the firm has multiple, strong, positive catalysts.
TSMC reported strong 2Q24 results, exceeding guidance and consensus expectations. Outlook also beat expectations, with revenue outlook in USD terms raised. TSMC expects strong structural AI demand and cyclical smartphone demand to drive second half of 2024.
Nvidia relies heavily on TSMC for its GPU manufacturing. TSMC expects AI chips to be around 20% of its total revenue within the next five years.
TSMC is the world's leading semiconductor contract manufacturer. The company has benefited from the rise in demand for AI-related chips.