Latest news with #CoWoS
Yahoo
6 days ago
- Business
- Yahoo
TSMC Q2 Earnings Preview: What to Expect from Upcoming Report
Taiwan Semiconductor Manufacturing (NYSE:TSM) is slated to release second-quarter results on Thursday, 17 July, with analysts projecting a sharp rise in earnings driven by booming demand for AI chips. The company is expected to post earnings per share of $2.37, reflecting a year-over-year increase of about 60%, according to analyst estimates. Revenue for fiscal 2025 is projected to reach nearly $114 billion, up from $87.9 billion in the prior year. TSMC has become a critical supplier in the artificial intelligence supply chain, with growing momentum behind its advanced chip packaging known as CoWoS. The company is forecast to double both its AI-related revenue and CoWoS capacity this year as tech giants rush to secure high-performance chipsets. The upbeat expectations come amid a broader rally in AI-linked semiconductor stocks. Investors will watch closely for updates on production scalability, margin trends, and how AI demand continues to shape the company's roadmap. TSMC's results will offer a key read on global AI infrastructure spending as chipmakers race to meet hyperscaler demand. Based on the one year price targets offered by 17 analysts, the average target price for Taiwan Semiconductor Manufacturing Co Ltd is $228.33 with a high estimate of $270.00 and a low estimate of $119.37. The average target implies a downside of -0.90% from the current price of $230.40. Based on GuruFocus estimates, the estimated GF Value for Taiwan Semiconductor Manufacturing Co Ltd in one year is $221.11, suggesting a downside of -4.03% from the current price of $230.40. Gf value is Gurufocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. For deeper insights, visit the forecast page. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
03-07-2025
- Business
- Yahoo
Morgan Stanley sees improved outlook for TSMC's U.S. investment under new policy
-- TSMC's U.S. expansion plans received a boost from newly enhanced tax incentives, which could ease the long-term profitability burden of its Arizona chip fabrication plants, according to Morgan Stanley. 'According to CNBC, under the latest 'big beautiful bill' passed by the U.S. Senate on July 1, tax credits for those semiconductor firms building capacity in the U.S. could rise from 25% to 35%,' Morgan Stanley wrote. The policy change is expected to benefit companies such as Intel (NASDAQ:INTC), Micron (NASDAQ:MU), and TSMC. The analysts said the revised credit structure 'reaffirms the policy encouragement' for semiconductor manufacturing in the U.S. and 'should reduce TSMC's profit burden for its U.S. capacity expansion.' They reiterated their Overweight rating on the stock, calling TSMC their Top Pick. While near-term growth is moderating, the firm remains bullish on TSMC's outlook. Morgan Stanley forecast third-quarter revenue to grow just 3% quarter-over-quarter in U.S. dollar terms, as some demand was 'pulled in by customers in 2Q25.' Gross margin is expected to drop 1.5 percentage points to 55.8% amid 'the TWD's recent strong appreciation against the USD.' Despite this, the bank expects full-year revenue growth guidance to be raised 'from mid-20% to high-20% due to strong AI demand.' A wafer price hike in 2026 and potential exemption from semiconductor tariffs were also cited as key re-rating catalysts. 'TSMC's 2026 CoWoS capacity expansion should be an important catalyst for global AI supply chain,' Morgan Stanley added, highlighting the company's pivotal role in the next leg of high-performance chip production. TSMC is set to report second-quarter earnings on July 17. Related articles Morgan Stanley sees improved outlook for TSMC's U.S. investment under new policy U.S., Europe push to build critical minerals supply chains as China dominates Citi names DuPont top chemicals pick, sees earnings support from electronics, FX
Yahoo
28-06-2025
- Business
- Yahoo
Goldman Sachs Adds TSM to Conviction Buy List—Here's Why
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the . On June 25, Goldman Sachs raised its price target for Taiwan Semiconductor Manufacturing Co to NT$1,210 from NT$1,145, maintaining its 'Buy' rating, and placing it on its Conviction Buy list. The firm's price target raise reflects easing concerns related to large AI-chip order cuts and expanding demand for the company's advanced CoWoS packaging beyond artificial-intelligence workloads. The firm increased its earnings forecasts by 2%-6% for 2025-27 after boosting projected wafer revenue from 3-nanometre and 5-nanometre production, anticipating TSMC's dollar revenue to grow an estimated 29% next year and 17% in 2026. A close up of a computer server rack powering the backbone of a wireless infrastructure. The firm believes that due to an improved supply-chain coordination between TSMC and server builders, it is rather unlikely that there are any further reductions in AI processor orders. It also highlighted that more smartphone, server, and networking customers are now adopting CoWoS – a chip-on-wafer packaging technique. The CoWoS allows multiple chips to be combined inside a single module, helping diversify demand. 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: 10 AI Stocks in the Spotlight and . Disclosure: None. Sign in to access your portfolio
Yahoo
25-06-2025
- Business
- Yahoo
Goldman Sachs lifts TSMC target as AI and advanced-packaging demand broadens
-- Goldman Sachs raised its price target for Taiwan Semiconductor Manufacturing Co to NT$1,210 from NT$1,145, saying concerns about large AI-chip order cuts have eased while demand for the company's advanced CoWoS packaging is spreading beyond artificial-intelligence workloads. The brokerage increased its earnings forecasts for the world's biggest contract chipmaker by 2%-6% for 2025-27 after boosting projected wafer revenue from 3-nanometre and 5-nanometre production. It now expects TSMC's dollar revenue to grow roughly 29% next year and 17% in 2026. Goldman sees limited risk of further reductions in orders for AI processors, citing improved supply-chain coordination between TSMC and server builders. At the same time, it said more smartphone, server and networking customers are adopting CoWoS – a chip-on-wafer packaging technique that allows multiple chips to be combined inside a single module, helping diversify demand. The brokerage lifted its CoWoS shipment estimates to 664,000 wafers in 2025 and 1.56 million in 2027, and raised its capital-expenditure forecasts to US$42 billion for 2026 and US$50 billion for 2027 to reflect faster capacity expansion. Goldman also expects TSMC to impose another round of price increases on its most advanced manufacturing nodes and packaging services in 2026, supported by tight supply and limited competition. TSMC's Taipei-listed shares were last at NT$1,070, about 13% below the new target, while its New York-listed ADRs traded around $222.18 in afternoon trading on Wednesday. Related articles Goldman Sachs lifts TSMC target as AI and advanced-packaging demand broadens BMO cuts Triple Flag rating after 60% rally but lifts target Powell: Fed's interest rate control toolkit depends on bank reserves
CNBC
11-06-2025
- Business
- CNBC
3 key things Nvidia's CEO said in Paris, plus Capital One strikes a positive tone
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets: Stocks were slightly higher in afternoon trading Wednesday, as investors digested cooler-than-expected inflation data and signs of progress on trade between the U.S. and China. Sentiment also was helped by the 10-year Treasury note auction at 1 p.m. ET, which observers graded as largely successful. As we wrote earlier , cautious optimism is the best way to describe where things stand on inflation and U.S.-China tensions right now. They are not the all-clear sign to start aggressively buying stocks, but they are still welcome. Nvidia update: A few comments caught our attention from CEO Jensen Huang during a question-and-answer with equity analysts at Nvidia's GTC Paris event. They came after Huang's keynote presentation and a flurry of announcements related to AI infrastructure projects in Europe. Our colleagues at CNBC abroad have a story out on those updates . Now, here are some of the highlights from the Q & A. As more devices such as smartphones and computers become capable of running AI applications "on device," Huang was asked about what that means for Nvidia's business model, given its market-leading AI chips run in vast data centers. "The more AI they use on the device, the more AI you're going to use in the data center because you still have to train the model. You have to develop the model and verify the model, evaluate the model. And all of that's done in the data center. Our business is not on the phone." Huang said Nvidia and its supply chain partners have made a lot of progress addressing the supply shortages that plagued the company during the early years of the generative AI boom. "None of the supply is horribly difficult to get now. It's constrained, but we're still growing fairly fast. So nothing is sitting around. We don't have ... a bunch of these supercomputers sitting around. They build what we ask them to build. So, we have to forecast it. But we're not limited by CoWoS. We're not limited by HBM. I just have to forecast, and our lead times are probably more than a year." (CoWoS is a method of chip packaging that had previously been a bottleneck for Nvidia's chipmaking partner Taiwan Semiconductor Manufacturing Co . HBM is shorthand for high-bandwidth memory chips, and tight supply also has been a sticking point in recent years.) Finally, Huang was asked about Nvidia's visibility into demand for next year, particularly in light of some of the European AI infrastructure announcements. While U.S. cloud computing giants like Amazon and Microsoft are Nvidia's biggest customers, the company has wisely been diversifying its revenue streams with "sovereign AI" projects in other parts of the world. Last month it was the Middle East, and now Europe is the focus. "Everything that I told you guys today is in addition to the [U.S. cloud service providers]. And most of Europe is underserved today. And even the parts that are served, the newest generation of [Nvidia] chips don't come out. You know, there are so many developers and researchers that are still using Amperes. They don't even have Hoppers barely. So that's the opportunity for the local [cloud service providers]. They could deploy the best as soon as possible. ... So all of this is incremental." (Ampere is Nvidia's AI chip architecture that went into full production in 2020, followed by the Hopper architecture in 2022. The generation that is ramping up now is Blackwell.) Consumer health: Capital One CEO Richard Fairbank struck a fairly positive tone on the state of the U.S. consumer despite macroeconomic uncertainty from President Donald Trump's tariffs, speaking Tuesday at Morgan Stanley's U.S. financials conference. "Despite all the noise out there and the tariff news and everything, even when we look at the very latest daily data on things like spending data or anything related to consumer behavior, we just don't see an effect. It's as if our consumers aren't really reading the same newspaper that we are. So, I'm cautiously optimistic about what I see." For the company specifically, Fairbank pointed out that since the fourth quarter of 2024, Capital One's delinquency trends have steadily improved. Zooming out further, the longtime executive also cited Friday's nonfarm payroll numbers , which indicated that overall job and real wage gains were both better than feared in May. All of this bodes well for Capital One's own financials. Its clients are not only able to pay back their minimums on their credit cards during a period of economic uncertainty, but also are still managing to spend consistently. At face value, Fairbank's remarks also are encouraging for our other consumer-facing names. Think retailers like Costco , Home Depot and Amazon , or chains like Starbucks and Texas Roadhouse , to name a few. If the consumer continues to spend, that's more sales for companies like these — and it's supportive for the U.S. economy overall, given the importance of private consumption to gross domestic product. Not every Wall Street executive is on the same page as Fairbank, though. At the same Morgan Stanley event Tuesday, JPMorgan CEO Jamie Dimon warned that the U.S. economy is vulnerable to a downturn. "I think there's a chance real numbers will deteriorate soon," he said. Up next: Oracle is set to report earnings after the bell, providing another look at data center demand and, perhaps, some thoughts on the energy requirements needed to build more AI infrastructure. On Thursday morning, we'll get the May producer price index report. The CPI report on Wednesday certainly carries more weight given that it revolves around what consumers actually pay. However, this PPI report should be a particular interest as investors look for clues as to what import tariffs have been doing to input costs and whether that could raise consumer prices in the near-term future. As of Wednesday evening, economists polled by Dow Jones are expecting see a 0.2% monthly increase, or 0.3% when stripping food and energy. Lastly, BlackRock's Investor Day ( webcast ) kicks off at 8:00 a.m. ET, which should provide more insight into how private market investments like Preqin are expected to contribute to growth in the future. — Investing Club portfolio analyst Zev Fima contributed to this report. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. 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