Taiwan Semi Rides AI Wave, Reports $7.1B Revenue In May
Portfolio Pulse from Anusuya Lahiri
Taiwan Semiconductor Manufacturing Co (TSMC) reported a 30% increase in May sales, driven by high demand for AI and recovering consumer electronics. TSMC produces semiconductors for Nvidia, Apple, and AMD, and expects AI development to drive sector recovery in 2024. Nvidia and Alphabet have significantly boosted the number of generative AI unicorns. TSMC stock gained 62% in the last 12 months.
June 07, 2024 | 12:56 pm
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POSITIVE IMPACT
TSMC produces semiconductors for Apple, which benefits from TSMC's advanced manufacturing capabilities and high margins.
Apple's reliance on TSMC for advanced semiconductors is likely to positively impact Apple's stock price due to TSMC's high margins and advanced manufacturing capabilities.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
TSMC produces semiconductors for AMD, which benefits from TSMC's advanced manufacturing capabilities and high margins.
AMD's reliance on TSMC for advanced semiconductors is likely to positively impact AMD's stock price due to TSMC's high margins and advanced manufacturing capabilities.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
Investors can gain exposure to the semiconductor sector via First Trust Nasdaq Semiconductor ETF, which includes companies like TSMC.
The positive outlook for TSMC and the semiconductor sector is likely to benefit FTXL, which includes semiconductor companies in its portfolio.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
TSMC produces advanced AI accelerators for Nvidia, which has significantly boosted the number of generative AI unicorns. This partnership is likely to benefit Nvidia.
Nvidia's reliance on TSMC for advanced AI accelerators and its investment in generative AI startups are likely to positively impact Nvidia's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 80
POSITIVE IMPACT
TSMC reported a 30% increase in May sales, driven by high demand for AI and recovering consumer electronics. The company expects AI development to drive sector recovery in 2024.
The significant increase in sales and positive outlook for AI-driven growth are likely to boost investor confidence in TSMC, positively impacting its stock price in the short term.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
ProShares UltraShort Semiconductors ETF may be negatively impacted by the positive outlook for TSMC and the semiconductor sector.
The positive outlook for TSMC and the semiconductor sector is likely to negatively impact SSG, which is designed to perform inversely to the semiconductor sector.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50