Latest news with #C.C.Wei
Yahoo
6 days ago
- Business
- Yahoo
1 No-Brainer AI Stock That Could Soar By 150% In 5 Years
Taiwan Semiconductor is in a neutral position for the AI arms race. Management has given a bold growth prediction for the next five years. The stock doesn't have a huge premium attached to it. 10 stocks we like better than Taiwan Semiconductor Manufacturing › The long-term returns for the broader stock market are about 10% annually, which causes the market to double around once every seven years. So, if you can pinpoint stocks that can soar 150% over the next five years, you'll have a great chance of beating the market with some margin of safety built in. One AI stock I've identified that can achieve that is Taiwan Semiconductor Manufacturing (NYSE: TSM). Taiwan Semiconductor is the leading chip fabricator worldwide and has nearly every big tech company as a client for its chips. Thanks to Taiwan Semiconductor's positioning, it can accurately project years into the future, which is where the 150% return level comes from. If you want to add another stock to your portfolio or increase your current TSMC holding, now could be an excellent time before the market wakes up to Taiwan Semiconductor's substantial opportunity. Taiwan Semiconductor, or TSMC, is a chip fabricator, and these orders are often placed years in advance due to high demand. For example, Taiwan Semiconductor's existing Arizona facility already sold out production through 2027, which means it likely has orders in its system for that facility through at least 2028. While there are some tariff concerns, semiconductors are exempt from reciprocal tariff levies as of this moment (although that could easily change). Furthermore, TSMC's CEO C.C. Wei stated in its first-quarter conference call that "we have not seen any change in our customers' behavior so far" when commenting on tariffs. Taiwan Semiconductor is more than generous with information to investors, offering monthly revenue updates throughout the year. In April, its revenue (in New Taiwan Dollars) was up 48% year over year and 40% in May. These numbers can fluctuate from year to year depending on how many working days there are from year to year (there were 23 working days in May during 2024 while only 22 in 2025), but it's still useful to check in on TSMC to get an idea of any large demand shifts. Clearly, Taiwan Semiconductor is doing great, but the 150% increase projection deals with the next five years, not the next five months. Management's long-term guidance given at the beginning of 2025 was for the company to grow AI-related revenue at a compounded annual growth rate (CAGR) of 45% for the next five years. That means AI-related revenue will rise 541% over the next five years. Overall revenue is expected to rise at nearly a 20% CAGR. If it achieves that level, then revenue will increase at a 149% pace. With fully mature companies like Taiwan Semiconductor, stock performance can be tied to revenue growth if margins aren't shrinking. Otherwise, returns are highly correlated to profit growth. As long as TSMC maintains its margins, profit and revenue growth likely will be equal. However, there is one caveat to this argument. Correlating stock returns with revenue growth is only true if the valuation is reasonable. A contracting multiple can wipe out a ton of revenue growth, but fortunately for investors, TSMC is valued at a reasonable level. At 22.9 times forward earnings, Taiwan Semiconductor is trading at nearly the same level as the broader market, as measured by the S&P 500 index, which trades at 22.5 times forward earnings. Common sense would lead investors to believe that because TSMC is expected to grow faster than the market, it should be valued at a premium to the market, but that's not the case. This mismatch will allow investors the chance to make a huge profit from buying and holding TSMC's stock for the next few years. Taiwan Semiconductor is one of the best stocks to buy on the market, and with its neutral position in the AI arms race, it's about as close as it gets to a surefire investment in the AI realm. 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 $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% 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 9, 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. 1 No-Brainer AI Stock That Could Soar By 150% In 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
India Gazette
6 days ago
- Business
- India Gazette
Race for advanced 2nm semiconductor chips heats up in H2 2025 as TSMC, Samsung, Intel gear up for production
New Delhi [India], June 16 (ANI): The global race to lead in next-generation 2-nanometer (nm) semiconductors is expected to intensify in the second half of 2025, with top foundries TSMC and Samsung Electronics preparing to begin mass production. At the same time, Intel is also looking to outpace its rivals with the launch of its more advanced 1.8nm process technology. According to a report by The Korea Herald, Taiwan's TSMC has already started receiving client orders for its 2nm process node. The chips are expected to be produced at its Baoshan and Kaohsiung factories in Taiwan in the latter half of the year. This marks a major milestone for TSMC, as it is adopting gate-all-around (GAA) transistor architecture for the first time in its 2nm chips. The new node promises 10-15 per cent better performance, 25-30 per cent lower power consumption, and a 15 per cent boost in transistor density compared to the current 3nm technology. Meanwhile, Samsung Electronics, the second-largest foundry player, is also targeting mass production of 2nm chips in the second half of 2025. The company confirmed in its latest earnings report that it will begin producing mobile chips using its 2nm node this year. Although it didn't mention the specific product, it is widely believed to be the Exynos 2600 chip, expected to power the upcoming Galaxy S26 series in early 2026. Samsung was the first to adopt GAA technology with its 3nm chips, but initially struggled with low yield rates. The company now aims to improve its 2nm production efficiency using its earlier experience. As per The Korea Herald, TSMC currently dominates the global foundry market, holding a 67.6 per cent share in Q1 2025. It added that TSMC's 2nm yield rate has surpassed 60 per cent, a key level for stable mass production. In comparison, Samsung's yield rate reportedly stands at around 40 per cent, with a market share of 7.7 per cent. Despite the tough competition, the 2nm market outlook remains strong. TSMC Chairman C.C. Wei said that demand for 2nm chips has already surpassed that of the 3nm generation, driven by demand from smartphones and high-performance computing. He also noted that the number of 2nm chip designs, or 'tape-outs,' in the first two years is expected to exceed those of previous nodes like 3nm, 4nm, and 5nm. Counterpoint Research has predicted that TSMC will reach full utilization of its 2nm production capacity by the fourth quarter of 2025, faster than for any previous node. Key clients are expected to include Apple, Qualcomm, MediaTek, AMD, and even Intel. To stay competitive, Samsung is making strategic moves to strengthen its foundry business. The company recently hired Margaret Han, a former TSMC executive, to lead its US foundry operations. Meanwhile, US chipmaker Intel is placing its bets on the 1.8nm process, known as 18A, to turn around its foundry business. Kevin O'Buckley, general manager of Intel Foundry Services, admitted that the company had missed some of its earlier deadlines but confirmed that 18A is now on track for high-volume manufacturing in the second half of 2025. He stated, 'I'll be very direct to admit we did not deliver all of our schedules for 18A.' Intel hopes to challenge both TSMC and Samsung in the advanced node race with this new process. (ANI)
Yahoo
12-06-2025
- Business
- Yahoo
Silent Giant TSMC Returns to the Peak of its Powers as the AI Boom Continues
AI and U.S. growth stocks have rebounded to record highs after their slump in February and March, rewarding those who bought the dip, especially in the IT and AI sectors. At the heart of this resurgence is Taiwan Semiconductor Manufacturing (TSM), better known as simply 'TSMC', the silent powerhouse behind the AI boom. The stock is within grasp of yet another historic high around the $225 mark. 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 TSMC produces the chips that drive everything from Nvidia's GPUs to Apple's iPhones, and it's now experiencing accelerated growth fueled by surging AI demand, global factory expansion, and massive capital investment. Despite its strong rebound and concerns about exuberant valuations, TSMC still appears attractively priced. Given how sharply TSM has bounced back, the stock could become the ultimate Tech play, with its best days still ahead. Many tech giants are currently riding the AI wave, but when it comes to TSMC, it's more appropriate to say that the company is steering it. As the world's largest contract chipmaker, it produces the advanced processors that Nvidia, AMD (AMD), and Apple (AAPL) rely on to bring AI to life. In TSMC's latest earnings call in April, CEO C.C. Wei revealed that AI chip revenue, which tripled in 2024, is expected to double again this year. This is currently a major tailwind for TSMC, driving a 41.6% year-over-year revenue surge. Specifically, advanced 3nm and 5nm chips, critical for AI's heavy lifting, made up 73% of wafer sales. With cloud giants like Microsoft (MSFT) and Amazon (AMZN) building AI data centers at breakneck speed, the company's factories are running at full capacity, with no signs that demand is slowing down anytime soon. In the meantime, with AI entering the sphere of national security, TSMC has been incentivized to not keep its magic in Taiwan. It's spreading its wings to secure its AI dominance and sidestep geopolitical risks. The company is investing $165 billion in U.S. factories, with Arizona's first fab already fully booked by heavyweights like Nvidia and Qualcomm (QCOM). Here's how all these giants stack up on TipRanks' stock comparison tool: Moreover, in Europe, a new $10 billion plant in Dresden, Germany, and a chip design center in Munich are positioning TSMC to capture the continent's growing AI market. Beyond the motive of diversifying supply chain and hedging geopolitical risk, TSMC has managed to secure long-term, high-value contracts with global tech titans through these moves, as they, in turn, can make such commitments with notably less risk involved. Wei emphasized that these expansions will cement TSMC's leadership for decades, even as U.S. trade policies loom as a potential headwind. By building closer to its customers, TSMC ensures its chips remain the go-to for AI innovation. TSMC is doubling down on AI with an aggressive capital expenditure plan of $38–$42 billion for this year, up from $29.8 billion in 2024. Over 70% of that spending is allocated to next-generation 3nm and 2nm chip production, set to launch later this year, which will deliver the performance needed to stay well ahead in the AI race. Realistically, few competitors are even operating at TSMC's level. This investment reflects a broader trend, as tech giants invest billions in AI infrastructure. TSMC sits at the center of this transformation, converting that capital into the cutting-edge chips driving AI's next evolution. As CEO C.C. Wei put it, 'AI demand is insatiable,' and TSMC is positioning itself to meet it, powering years of potential growth. Here's where the investment case gets compelling: despite TSMC's explosive growth, the stock remains attractively valued. With Wall Street projecting a 33% jump in EPS this year, TSMC trades at a forward P/E of just 22. For a cyclical chipmaker, that might seem high, but TSMC isn't a typical semiconductor company. The AI boom is a multi-year tailwind, driving sustained top and bottom-line growth. With over 60% global foundry market share and ongoing global expansion, TSMC's scale and strategic positioning make that valuation look like a bargain—even if EPS growth slows in future years. Wall Street appears strongly bullish on TSMC's prospects, further emboldening the stock's recent rebound alongside most other high-growth tech stocks. TSMC stock carries a Strong Buy consensus rating, with seven analysts currently bullish and one neutral. TSMC's average stock price target of $223 indicates a modest 5% upside potential over the coming twelve months, amid a broader long-term trend that is expected to deliver amiable returns for several years to come. Calling TSMC just a chipmaker misses the bigger picture—it's the backbone of the AI era. With AI demand soaring, global fabs in development, and billions in capex reinforcing its dominance, TSMC's growth story is far from over. Trading at a forward P/E of ~26, the stock offers a rare opportunity to own a high-growth industry leader at a reasonable valuation. Yes, geopolitical risks remain, but TSMC's strategic positioning keeps it ahead of the curve. For investors looking to ride the AI wave, TSM may be one of the shrewdest long-term bets available. Disclaimer & DisclosureReport an Issue Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
Business Insider
12-06-2025
- Business
- Business Insider
Silent Giant TSMC Returns to the Peak of its Powers as the AI Boom Continues
AI and U.S. growth stocks have rebounded to record highs after their slump in February and March, rewarding those who bought the dip, especially in the IT and AI sectors. At the heart of this resurgence is Taiwan Semiconductor Manufacturing (TSM), better known as simply 'TSMC', the silent powerhouse behind the AI boom. The stock is within grasp of yet another historic high around the $225 mark. Confident Investing Starts Here: TSMC produces the chips that drive everything from Nvidia's GPUs to Apple's iPhones, and it's now experiencing accelerated growth fueled by surging AI demand, global factory expansion, and massive capital investment. Despite its strong rebound and concerns about exuberant valuations, TSMC still appears attractively priced. Given how sharply TSM has bounced back, the stock could become the ultimate Tech play, with its best days still ahead. AI's Engine Room: TSMC's Chip Dominance Many tech giants are currently riding the AI wave, but when it comes to TSMC, it's more appropriate to say that the company is steering it. As the world's largest contract chipmaker, it produces the advanced processors that Nvidia, AMD (AMD), and Apple (AAPL) rely on to bring AI to life. In TSMC's latest earnings call in April, CEO C.C. Wei revealed that AI chip revenue, which tripled in 2024, is expected to double again this year. This is currently a major tailwind for TSMC, driving a 41.6% year-over-year revenue surge. Specifically, advanced 3nm and 5nm chips, critical for AI's heavy lifting, made up 73% of wafer sales. With cloud giants like Microsoft (MSFT) and Amazon (AMZN) building AI data centers at breakneck speed, the company's factories are running at full capacity, with no signs that demand is slowing down anytime soon. Going Global: TSMC's Strategic Power Move In the meantime, with AI entering the sphere of national security, TSMC has been incentivized to not keep its magic in Taiwan. It's spreading its wings to secure its AI dominance and sidestep geopolitical risks. The company is investing $165 billion in U.S. factories, with Arizona's first fab already fully booked by heavyweights like Nvidia and Qualcomm (QCOM). Here's how all these giants stack up on TipRanks' stock comparison tool: Moreover, in Europe, a new $10 billion plant in Dresden, Germany, and a chip design center in Munich are positioning TSMC to capture the continent's growing AI market. Beyond the motive of diversifying supply chain and hedging geopolitical risk, TSMC has managed to secure long-term, high-value contracts with global tech titans through these moves, as they, in turn, can make such commitments with notably less risk involved. Wei emphasized that these expansions will cement TSMC's leadership for decades, even as U.S. trade policies loom as a potential headwind. By building closer to its customers, TSMC ensures its chips remain the go-to for AI innovation. Betting Big: Capex Fuels the AI Future TSMC is doubling down on AI with an aggressive capital expenditure plan of $38–$42 billion for this year, up from $29.8 billion in 2024. Over 70% of that spending is allocated to next-generation 3nm and 2nm chip production, set to launch later this year, which will deliver the performance needed to stay well ahead in the AI race. Realistically, few competitors are even operating at TSMC's level. This investment reflects a broader trend, as tech giants invest billions in AI infrastructure. TSMC sits at the center of this transformation, converting that capital into the cutting-edge chips driving AI's next evolution. As CEO C.C. Wei put it, 'AI demand is insatiable,' and TSMC is positioning itself to meet it, powering years of potential growth. TSMC Valuation Defies Expectations Here's where the investment case gets compelling: despite TSMC's explosive growth, the stock remains attractively valued. With Wall Street projecting a 33% jump in EPS this year, TSMC trades at a forward P/E of just 22. For a cyclical chipmaker, that might seem high, but TSMC isn't a typical semiconductor company. The AI boom is a multi-year tailwind, driving sustained top and bottom-line growth. With over 60% global foundry market share and ongoing global expansion, TSMC's scale and strategic positioning make that valuation look like a bargain—even if EPS growth slows in future years. Is TSMC Stock a Buy, Sell, or Hold? Wall Street appears strongly bullish on TSMC's prospects, further emboldening the stock's recent rebound alongside most other high-growth tech stocks. TSMC stock carries a Strong Buy consensus rating, with seven analysts currently bullish and one neutral. TSMC's average stock price target of $223 indicates a modest 5% upside potential over the coming twelve months, amid a broader long-term trend that is expected to deliver amiable returns for several years to come. The AI Bet You Can't Overlook Calling TSMC just a chipmaker misses the bigger picture—it's the backbone of the AI era. With AI demand soaring, global fabs in development, and billions in capex reinforcing its dominance, TSMC's growth story is far from over. Trading at a forward P/E of ~26, the stock offers a rare opportunity to own a high-growth industry leader at a reasonable valuation. Yes, geopolitical risks remain, but TSMC's strategic positioning keeps it ahead of the curve. For investors looking to ride the AI wave, TSM may be one of the shrewdest long-term bets available.
Yahoo
11-06-2025
- Business
- Yahoo
TSMC (TSM) Reports 40% Revenue Surge in May as AI Chip Demand Booms
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the 1. On June 10, the company reported its May revenue, which surged 40% year-over-year to NT$320.5 billion ($10.7 billion) as demand remained high for its AI chips. The contract chipmaker, which supplies to tech giants such as Apple and Nvidia, had its revenue up 39.6% from a year earlier but down 8% from April's figure. According to TSMC's CEO C.C. Wei, April softening was seasonal, and the company is ramping advanced nodes to ease bottlenecks. Its capacity expansions in Arizona and Taiwan are progressing according to plan. Moreover, new EUV tools and packaging lines are launching to boost throughput for the latest H100 and next-gen Gaudi GPUs. A macro view of a 5G/4G chips and modules, displaying the cutting edge technology of the company. Back in March, Wei joined President Donald Trump in announcing his intent to invest $100 billion in U.S.-based chip-manufacturing facilities. He acknowledged TSMC's projection of 'full-year 2025 revenue to increase by close to mid-20s percent in U.S. dollar terms' in the company's first-quarter earnings call in April. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells advanced chips used in artificial intelligence applications. While we acknowledge the potential of TSM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. 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
