Taiwan Semiconductor Just Became Even More of an AI Anchor On Nvidia’s -25% Plummet

Résumé détaillé

While one AI chip giant spirals through scandal and a leadership vacuum, a quieter company keeps collecting a check on every chip that ships. One investor explains why he keeps buying it, and why he passes on a famous rival.

I added to my Taiwan Semiconductor (NYSE:TSM) position again this week, and every new data point reinforces my conviction to keep buying. Over the past month, Nvidia (NASDAQ:NVDA) shares fell 27.28%. My foundry shares slipped 8.87% over the same stretch. That gap shows me which company actually holds the AI build-out together.

Nvidia's slide sped up after reports that Jensen Huang had an affair with a woman U.S. officials reportedly concluded was "a Chinese intelligence asset". Then came his resignation as CEO. As investors lose trust in a single chip designer, I expect more of them to look at the picks-and-shovels companies that supply the whole industry (we covered seven of those AI suppliers, from power to cooling, in a free report you can grab here).

TSMC makes the chips, so it gets paid for every wafer no matter which designer wins. The chief executive put it plainly on the October call: "Therefore, all the AI players are working with TSMC." He also said "Demand is still far above our capability to supply today." When a company holds the rarest capacity in technology, I want to own it no matter whose logo ends up on the chip.

For many Americans, funding a 401(k) only leads to more retirement questions. Should you roll your 401k into an IRA, and when? What's the tax impact if the rollover check gets made out to the wrong name? When do required withdrawals begin, and how much do you have to take?

One key factor is how much of the leading edge TSMC controls. Nodes of 7nm and below made up 79% of wafer revenue in the third quarter. The 2nm share rose to 8% from 3% one quarter earlier, and high-performance computing accounted for 68% of revenue.

Growth keeps showing up in earnings as well. Third-quarter EPS came in at $4.60 against a consensus of $4.46. Management raised its full-year forecast to about 44% revenue growth in U.S. dollars, up from slightly above 40%. October revenue rose 59.7% year over year.

I also still get a reasonable price and a growing income stream.

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Début de l'article, extrait de Yahoo Finance. Pour lire la suite, ouvrez l'article chez le média.