2024-07-18 10:57:09 ET
Summary
- Taiwan Semiconductor Manufacturing Company Limited's Q2 beat and raise continues to solidify its path towards a $1 trillion market cap.
- The robust results and upbeat outlook corroborates sustained demand for HPC hardware given ongoing AI momentum, complemented by a stronger-than-expected cyclical recovery in consumer devices.
- This continues to highlight competitive value in Taiwan Semiconductor's technology advantage, given its sole capability in producing at the most advanced nodes and packaging processes critical to high-growth innovations like AI.
Taiwan Semiconductor Manufacturing Company Limited aka TSMC ( TSM ) stock is likely on course towards a sustained $1 trillion market cap, as the underlying business continues to ride the coattails of the AI rally led by Nvidia ( NVDA ). The company’s latest Q2 beat and raise was largely expected, after it reported another quarter of stronger-than-expected growth earlier this month.
Unlike the lofty premiums observed in the Magnificent Seven, which have increasingly decoupled from their respective underlying fundamentals recently, TSM’s current valuation continues to be backed by tangible financial strength from its core operations. Specifically, TSM’s latest Q2 outperformance continues to demonstrate three key drivers to its valuation prospects that remain intact....
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For further details see:
3 Key Takeaways From TSMC's Q2 2024 Beat And Raise