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The Zacks Analyst Blog Highlights Taiwan Semiconductor Manufacturing, NVIDIA and Advanced Micro Devices

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For Immediate Release

Chicago, IL – October 17, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Taiwan Semiconductor Manufacturing Company Ltd. (TSM - Free Report) , NVIDIA (NVDA - Free Report) and Advanced Micro Devices (AMD - Free Report) .

Here are highlights from Wednesday’s Analyst Blog:

Increasing AI Investments to Boost Taiwan Semi's Q3 Stock Report

Taiwan Semiconductor Manufacturing Company Ltd. is scheduled to report third-quarter 2024 results on Oct. 17.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Taiwan Semiconductor is likely to record yet another strong financial performance this time around, driven by rising investments in artificial intelligence (AI). With its advanced product portfolio, the company is likely to have capitalized on the demand for high-performance computing and smartphone applications.

Click here to know how TSM's overall third-quarter results are likely to be.

TSM's Q3 Results to be Aided by AI Boom

The rapid expansion of the global AI market resulted in a surge in investment, driving demand for advanced technologies and infrastructure. With AI rapidly revolutionizing industries from cloud computing to consumer electronics, Taiwan Semiconductor's role as the world's largest contract chipmaker is poised to gain significant momentum. The company's strategic focus on cutting-edge AI technologies is expected to have been a key growth driver for its third-quarter earnings.

On its second-quarter earnings call, Taiwan Semiconductor reported robust demand for its 3-nanometer (nm) and 5-nm technologies, which were heavily utilized in AI and high-performance computing (HPC) applications. The company's increasing share of revenues from these advanced technologies reflects its strong positioning in AI-related markets. Notably, TSM's AI-related business, especially in CoWoS (Chip-on-Wafer-on-Substrate) advanced packaging, continues to grow rapidly, with demand consistently outpacing supply.

For the third quarter, Taiwan Semiconductor expects revenues to be between $22.4 billion and $23.2 billion, representing a 9.5% sequential increase at the mid-point. This growth is likely to have been driven by strong demand for AI applications and HPC. The company's investments in expanding 3-nm and 2-nm technology production, alongside increasing capacity for advanced packaging solutions, position TSM to capture further AI-driven business.

The semiconductor industry's ongoing AI revolution presents massive opportunities for TSM. AI accelerators, machine learning and neural networks require powerful, efficient chips capable of processing vast amounts of data. TSM's leadership in advanced process technologies, such as 3-nm and 5-nm nodes, enables it to meet the increasing computational demands of AI. The company's continuous ramp-up of 3-nm production, coupled with ongoing research into 2-nm technology, underscores its commitment to remaining at the forefront of semiconductor innovation.

In conclusion, Taiwan Semiconductor's robust investments in AI technologies are likely to have propelled its third-quarter 2024 earnings. As AI adoption accelerates across industries, TSM's leadership in cutting-edge semiconductor technology positions it as a key beneficiary of this transformative trend.

Robust Customer Base Drives TSM's Growth

Taiwan Semiconductor enjoys a strong customer momentum on the back of its powerful solutions. The company's customer base includes many semiconductor bigwigs, such as NVIDIA, Advanced Micro Devices, Broadcom, Infineon Technologies, MediaTek, NXP Semiconductors and Qualcomm.

In 2023, Taiwan Semiconductor's 10 large customers contributed 70% to the total revenues. The largest customer among them contributed 25% alone, whereas the second-largest customer accounted for 11% of the net revenues in the same year. Growing relationships with these behemoths are expected to have driven this Zacks Rank #2 (Buy) company's top-line growth in the to-be-reported quarter. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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