Taiwan Semiconductor Reports 37% Sales Growth in January
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy NVDA?
Source: NASDAQ.COM
- Significant Sales Growth: Taiwan Semiconductor's January sales surged nearly 37% year-over-year, exceeding the company's historical average and pushing its stock to all-time highs, indicating strong market demand for chips that could positively impact Nvidia's performance.
- Demand Expectations: As the primary manufacturer of Nvidia chips, Taiwan Semiconductor's robust sales suggest a potential increase in demand for Nvidia's products, which is encouraging news for shareholders, especially ahead of the upcoming earnings report.
- Supportive Macro Data: Analysts at UBS noted that Taiwan's Ministry of Finance reported an 8% increase in exports of automatic data-processing equipment excluding laptops in January, which is typically a positive market signal and may indicate growth potential for Nvidia's data center division.
- Attractive Valuation: Despite Nvidia's stock rising nearly 42% over the past year, its current price-to-earnings ratio is below 25 times, significantly lower than the five-year historical average of 35 times, suggesting a favorable buying opportunity for long-term investors ahead of the earnings report.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 186.940
Low
200.00
Averages
264.97
High
352.00
Current: 186.940
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Alphabet's AI Success: Alphabet's Gemini chatbot has reached 750 million monthly active users, a 67% increase in nine months, and its collaboration with Apple to integrate Gemini into Siri is expected to generate billions in revenue, further boosting its cloud computing growth.
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- New Architecture Driving Growth: Nvidia's upcoming Rubin chip architecture offers significant efficiency improvements over the previous Blackwell generation, requiring only one Rubin chip for every four Blackwell chips for AI model training, which will encourage more companies to upgrade their GPUs, thus driving sustained growth for Nvidia.
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- AI Investment: The company is increasing its investments in artificial intelligence and machine learning to enhance its vehicles' self-driving capabilities, a strategy that will further solidify Tesla's leadership position in the electric vehicle market.
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