Latest news with #TSM
Yahoo
4 hours ago
- Business
- Yahoo
Goldman Sachs Maintains a Buy Rating on Taiwan Semiconductor Manufacturing (NYSE:TSM) With a PT of $242
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the 13 Best Long Term Growth Stocks to Invest in Right Now. In a report released on June 25, Bruce Lu from Goldman Sachs maintained a Buy rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) with a price target of $242.00. A close-up of a complex network of integrated circuits used in logic semiconductors. The company reported its net revenue for May 2025 on June 10, which reached NT$320.516 billion. While the figure represents an 8.3% drop from April 2025, it also shows a significant 39.6% growth compared to May 2024. Taiwan Semiconductor Manufacturing Company Limited's (NYSE:TSM) total revenue for fiscal year 2025 as of May is around NT$1,509.34 billion, which translates to a 42.6% growth versus the same period last year. The revenue figures thus suggest strong year-over-year growth for the company, reflecting its solid market position in spite of short-term challenges and fluctuations. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the largest contract semiconductor manufacturer in the world. Some of its prominent customers include semiconductor companies that outsource all or a part of their chip production, including Advanced Micro Devices, Nvidia, Broadcom, and more. 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: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
2 days ago
- Business
- Yahoo
Here's Why Morgan Stanley Maintained a Hold Rating on Applied Materials (AMAT)
Applied Materials, Inc. (NASDAQ:AMAT) is one of the 12 Best Stocks to Buy and Hold for the Long Term. On June 16, Shane Brett CFA from Morgan Stanley maintained a Hold rating on Applied Materials, Inc. (NASDAQ:AMAT) with a price target of $158. The cautious rating is based on a mixed outlook on Taiwan Semiconductor Manufacturing (NYSE:TSM) and DRAM growth. Shane Brett noted Applied Materials, Inc. (NASDAQ:AMAT)'s DRAM revenue is expected to drop 12% in fiscal 2026. On the other hand, some analysts remain optimistic about the company driven by new technologies like Gate-All-Around (GAA) transistors and backside power delivery. The outlook regarding the company's valuation also presented variation, with some analysts believing the company's semiconductor equipment business (SPE) deserves higher trading multiple due to its growth prospects. On the other hand, some think current valuations are considerably elevated. Due to this mixed outlook around Applied Materials, Inc. (NASDAQ:AMAT), Brett maintained a Hold rating on the stock. A technician in a clean room assembling a semiconductor chip using a microscope. During the fiscal second quarter of 2025, Applied Materials, Inc. (NASDAQ:AMAT) reported a revenue of $7.1 billion, reflecting a 7% increase year-over-year. The growth was driven by solid performance across the board. Notably, the gross margins improved 170 basis points to 49.2% reflecting the highest quarterly margins since FQ4 2000. Looking ahead, management anticipates slight year-over-year growth with revenue between $7.15 billion and $7.25 billion. While we acknowledge the potential of AMAT 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: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
3 days ago
- Business
- Yahoo
Susquehanna Raised the PT on Taiwan Semiconductor Manufacturing (TSM), Keeping a Buy Rating
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the 12 Best Stocks to Buy and Hold for the Long Term. On June 17, Susquehanna raised the firm's price target on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) from $250 to $255 while keeping a Buy rating on the stock. The increased price target comes at a time when AI growth sentiment is weakening and global tariffs topped with geo-political uncertainties are posing challenges for the company. The firm noted recent checks indicate that increased demand for AI-related wafer shipments in Q2 is compensating for weaker shipments in the smartphone segment. Moreover, the surge in AI chip demand is a critical growth driver for Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as advanced chips used in AI applications are seeing robust orders, even as traditional consumer electronics like smartphones face cyclical softness. A close-up of a complex network of integrated circuits used in logic semiconductors. Susquehanna also highlighted that TSM is likely to remain the only leading-edge foundry provider through at least 2027, thereby reassuring its market-leading position. Moreover, Ariel Global Fund also noted Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q1 2025 investor letter, noting the company has a dominant share in the global foundry industry. Despite the recent shift in AI sentiment, the fund continues to see the company's earnings benefiting from long-term AI trends. Ariel Global Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q1 2025 investor letter: 'Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) shares declined on weakening sentiment regarding Artificial Intelligence (AI) growth, the impact of tariffs and global macroeconomic uncertainty. TSMC has a dominant share of the global foundry market and is an industry leader in terms of scale, technology, customer service and execution. As such, we expect the company's earnings will benefit from secular growth trends of AI longer-term. Meanwhile, TSMC remains committed to returning capital to shareholders through buybacks and dividends.' 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: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
3 days ago
- Business
- Yahoo
Taiwan Semiconductor Option Trade has a Profit Zone Between $220 and $250
Taiwan Semiconductor (TSM) stock is showing impressive price action and it could continue to grind higher in the lead up to earnings on July 17th. One way to take advantage of that directional opinion is via a diagonal call spread. $2M Insider Buy on Robinhood Makes History: Should You Buy HOOD Stock, Too? Carnival Corp's Free Cash Flow Surges - CCL Stock Looks Deeply Undervalued Exelon Corp (EXC) Draws Bullish Options Bets After Unusual Volume Spike Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Let's look at an example using Taiwan Semiconductor. Taiwan Semiconductor Diagonal Put Spread Example The trade I'm looking at is selling a July 18 call with a strike price of $240 and buying an August 1 call with a strike price of $245. As of yesterday's close, the July 18 call could be sold for around $1.90 and the August 1st call could be bought for 2.40. The trade would result in a net debit of $50. The maximum risk on the trade is calculated by taking the difference in the spread (5) multiplied by 100 and adding the premium paid ($50). That gives a maximum loss of $550. The maximum potential gain is around $550 which would occur if TSM closes right at $240 on July 18. The trade has a nice profit zone in between $220 and $250. Aiming for a return of around 10-15% makes sense and I would set a similar stop loss. The worst-case scenario is a sharp rally in TSM stock early in the trade. For this reason, if the stock rises above $240 in the next few days, I would also consider closing the trade early to minimize losses. The ideal scenario is a slow grind higher up to the $240 level around mid-July. The initial trade set up has a delta of 1 meaning the position is roughly equivalent to owning 1 share of TSM stock. Note that this delta number can change significantly as the stock starts to move. Below is the payoff graph with the blue line representing the profit or loss at expiration and the purple line being the trade as of today. Provided TSM stock stays below $240 in the next week or so, the trade should be ok. Taiwan Semiconductor Company Details The Barchart Technical Opinion rating is a 56% Buy with a Strengthening short term outlook on maintaining the current direction. Taiwan Semiconductor Manufacturer Co is the world's largest dedicated integrated circuit foundry. As a foundry, the Company manufactures ICs for its customers based on their proprietary IC designs using its advanced production processes. TSMC's goal is to establish itself as one of the world's leading semiconductor companies by building upon the strengths thathave made it the leading IC foundry in the world. Of the 11 Analysts following TSM there are 8 Strong Buy, 2 Moderate Buy and 1 Hold recommendations. Please remember that options are risky, and investors can lose 100% of their investment. This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions. On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Globe and Mail
3 days ago
- Business
- Globe and Mail
2 Hot Stocks Riding the AI Wave
Artificial intelligence (AI) is a game-changing technology with the potential to disrupt industries and deliver massive productivity gains. While companies like OpenAI and Anthropic, which develop top-tier AI models, generate a lot of headlines, there are plenty of publicly traded companies successfully riding the AI wave as well. Two prime examples are Oracle (NYSE: ORCL) and Taiwan Semiconductor Manufacturing (NYSE: TSM), both of which look like great AI bets. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Booming cloud-computing growth As Amazon Web Services (AWS) and Microsoft Azure became the top two players in the public cloud-computing market, Oracle was largely left out. However, soaring demand for AI computing capacity has changed the story. Oracle has been rapidly building out AI-enabled data centers, and the results have been impressive. Oracle's cloud-infrastructure revenue surged by 52% year over year in the final quarter of fiscal 2025 to $3 billion. That's still small relative to the market leaders, but Oracle is growing much faster. Amazingly, growth is set to accelerate. Oracle expects cloud-infrastructure revenue to grow by more than 70% in fiscal 2026 as more data centers come online and its infrastructure investments pay off. The cloud-infrastructure business is now large enough that Oracle's overall revenue growth is likely to accelerate in fiscal 2026 thanks to that blockbuster growth. Revenue was up 8% in fiscal 2025 to $57.4 billion, and it should accelerate to double digits in fiscal 2026. Beyond cloud infrastructure, Oracle's cloud-software business is also growing swiftly. Overall, cloud-application revenue rose by 12% in the fourth quarter to $3.7 billion, with both Fusion Cloud ERP and NetSuite Cloud ERP reaching the $1 billion market. This is offsetting lower on-premise software license revenue and weaker growth in hardware and services. Oracle has undoubtedly found its niche in the cloud-infrastructure market, and it's aggressively building out more capacity to meet demand. As long as the AI boom continues, Oracle is set to be an unlikely AI winner. The AI chip king Essentially, all the AI accelerators powering the AI revolution, from Nvidia, AMD, and others, are manufactured by TSMC. As tech giants increasingly design their own AI chips, TSMC is the manufacturer of choice. For the first five months of 2025, TSMC's revenue has risen by more than 42% year over year as demand for AI chips soars. TSMC is pouring capital into new manufacturing facilities. The company is planning a total investment in U.S. facilities of $165 billion over multiple years, which will involve multiple new fabs, new advanced packaging facilities, and an R&D center. In 2025 alone, TSMC's global capital spending is expected to be as high as $42 billion. These investments will support the company's upcoming process technologies, including its 2nm-class N2 process and the A16 process slated for 2026. There's certainly some competition brewing. Intel has made some noise with its 18A process, which delivers large improvements over older processes and should be competitive with what TSMC has to offer. However, Intel has struggled to win external foundry customers and has delayed multiple new facilities amid its financial struggles. Intel could win some AI chip orders, but TSMC will almost certainly remain the top dog in foundry business for the foreseeable future. AMD believes the AI chip market will expand to $500 billion by 2028. If that estimate is even close to accurate, TSMC will be a major beneficiary. Being based in Taiwan does introduce some risks for investors given recent developments in U.S. trade policy, but the company is well positioned to continue riding the AI wave to much higher revenue over the next few years. Should you invest $1,000 in Oracle right now? Before you buy stock in Oracle, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Oracle 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 $676,023!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,692!* Now, it's worth noting Stock Advisor 's total average return is793% — a market-crushing outperformance compared to173%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Timothy Green has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Intel, Microsoft, Nvidia, Oracle, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft, short August 2025 $24 calls on Intel, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
