What's Going On With Taiwan Semi Stock On Monday?
Portfolio Pulse from Anusuya Lahiri
Taiwan Semiconductor Manufacturing Co (TSMC) is significantly expanding its U.S. investment to over $65 billion, supported by a $6.6 billion federal grant, to produce advanced 2-nanometer chips. This includes building a third chip manufacturing facility in Phoenix, Arizona, by 2030, marking the largest foreign direct investment in U.S. history for a greenfield project. TSMC also aims for 60% local procurement for its first chip manufacturing facility in Japan by 2030. Despite a severe earthquake in Taiwan, TSMC maintains its annual revenue growth forecast. TSMC stock has gained 59% in the last 12 months, and investors can also gain exposure through VanEck Semiconductor ETF (SMH) and iShares Semiconductor ETF (SOXX).
April 08, 2024 | 12:06 pm
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POSITIVE IMPACT
TSMC's expansion efforts and its role as a major supplier to Apple suggest a strengthened supply chain, potentially benefiting Apple's future product lines.
Given TSMC's significant role in Apple's supply chain, the expansion and investment in advanced manufacturing capabilities are likely to secure and enhance the supply chain, positively influencing Apple's ability to innovate and launch new products, potentially benefiting AAPL stock in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 75
POSITIVE IMPACT
As a key supplier to Nvidia, TSMC's expansion and commitment to advanced chip production may positively impact Nvidia's supply chain and future product offerings.
TSMC's role as a key supplier to Nvidia and its commitment to expanding production capabilities, especially in advanced chips, are likely to enhance Nvidia's supply chain reliability and support its future product innovations, potentially positively impacting Nvidia's stock in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 75
POSITIVE IMPACT
Investors can gain exposure to TSMC's growth through the VanEck Semiconductor ETF, which includes TSMC as part of its holdings.
As TSMC is included in the VanEck Semiconductor ETF's holdings, the company's significant investment and positive growth forecast are likely to contribute positively to the ETF's performance, making it an attractive option for investors looking to gain exposure to the semiconductor sector.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
The iShares Semiconductor ETF, which includes TSMC, offers investors an opportunity to benefit from TSMC's strategic investments and growth.
Given that TSMC is part of the iShares Semiconductor ETF's holdings, the company's aggressive expansion and positive outlook are expected to positively influence the ETF's performance, offering a valuable investment opportunity in the semiconductor industry.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
TSMC is expanding its U.S. investment to over $65 billion, including a new facility in Arizona, and maintains a positive revenue growth forecast despite a recent earthquake in Taiwan.
The significant U.S. investment and expansion, along with maintaining a positive revenue forecast despite potential disruptions, indicate strong future growth prospects for TSMC. This is likely to positively impact investor sentiment and TSMC's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100