What's Going On With Nvidia Stock On Friday?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 18 2024
0mins
Should l Buy TSM?
Source: Benzinga
Nvidia Blackwell Chip Delay: Nvidia's Blackwell chips will not be available until early 2025, impacting major clients like Amazon Web Services and Dell Technologies, which are awaiting bulk production for their data centers. Despite the delays, Nvidia's CEO remains optimistic about demand and revenue projections.
Market Dynamics and Competition: Amazon has partnered with Databricks to offer affordable AI development tools using its Trainium chips, challenging Nvidia's market dominance. Meanwhile, Nvidia's stock has surged over 227% in the past year, driven by high demand for AI-related technologies.
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Analyst Views on TSM
Wall Street analysts forecast TSM stock price to fall
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 337.950
Low
63.24
Averages
313.46
High
390.00
Current: 337.950
Low
63.24
Averages
313.46
High
390.00
About TSM
Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based integrated circuit foundry service provider. The Company is primarily engaged in integrated circuit manufacturing services. It offers advanced process technologies, specialised process solutions, advanced photomask and silicon stacking, and packaging-related technologies, while supporting a comprehensive design ecosystem. The Company's products serve diverse electronic sectors including artificial intelligence, high-performance computing, wired and wireless communications, automotive and industrial equipment, personal computing, information applications, consumer electronics, smart internet of things, and wearable devices.
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.
TSMC to Begin Mass Production of 3nm Chips in Japan by 2028
- Advanced Process Expansion: TSMC plans to start mass production of 3nm chips at its Kumamoto facility in Japan by 2028, targeting a monthly capacity of 15,000 12-inch wafers, marking Japan's first domestic production of 3nm chips and enhancing its competitiveness in high-performance computing and AI.
- Significant Investment: The investment for the second fab plant has reached $17 billion, primarily supported by substantial Japanese government subsidies, reflecting TSMC's commitment to the Japanese market and its strategy to diversify production amid geopolitical risks.
- Notable Technology Upgrade: The upgrade from the initially planned 6-12nm processes to the advanced 3nm technology significantly expands semiconductor manufacturing capabilities, addressing the surging demand for AI chips and laying the groundwork for future electronic products.
- Deepening Strategic Cooperation: The project's advancement is bolstered by the trust between Taiwan and Japan, with TSMC CEO CC Wei announcing the initiative during talks with Japan's PM Sanae Takaichi in 2026, further solidifying bilateral cooperation in the semiconductor sector.
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- TSMC Expansion Plans: Taiwan Semiconductor Manufacturing Company (TSMC) plans to begin mass production of 3 nm chips at its second Japanese fab in 2028, targeting a monthly output of 15,000 12-inch wafers, marking a significant technological advancement and enhancing its competitive position.
- Broad Market Gains: The optimism surrounding Trump's remarks and the opening of a new quarter led to widespread gains in the stock market, with TSMC climbing 1.2% in premarket trading, reflecting positive sentiment regarding a potential resolution to the U.S.-Iran conflict.
- Retail Sentiment Shift: As of April 1, retail sentiment for TSMC on Stocktwits shifted from 'bearish' to 'neutral', with investors posting about increasing their positions, indicating a growing confidence in the company's future performance.
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- Micron Technology Outlook: Micron Technology (MU) shares have fallen approximately 15% in the past month despite exceeding fiscal Q2 expectations, with a forward P/E of just 3.5 times fiscal 2027 estimates, showcasing strong performance in the DRAM and NAND markets, and the potential to stabilize revenue through long-term contracts could break the cyclical pattern.
- Taiwan Semiconductor's Market Position: Taiwan Semiconductor Manufacturing (TSM) shares have pulled back about 10% over the past month, but as the world's largest chip manufacturer, its critical role in AI infrastructure cannot be overlooked, with expected demand for high-performance CPUs and the emerging robotaxi market driving long-term growth, despite short-term uncertainties from the Middle East situation.
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- Increased Google Holdings: Druckenmiller added 282,800 shares of Alphabet's Class A stock in Q4, boosting his stake by 277%, which reflects strong confidence in the company's growth potential, particularly driven by AI advancements.
- Amazon Investment Growth: He also increased his holdings in Amazon by 300,870 shares, a 69% rise, indicating optimism about Amazon's continued growth in cloud computing and e-commerce, especially with the integration of AI solutions.
- AI Market Potential: Druckenmiller's investment choices highlight AI as the biggest technological leap since the internet, with projections of over $15 trillion in global economic value by 2030, further solidifying Google's and Amazon's market leadership.
- Valuation Attractiveness: Both Google and Amazon are trading at relatively low valuations of 14.3 times and 9.7 times their projected future cash flows, respectively, which are below their historical averages, indicating significant potential for returns on AI investments that have caught Druckenmiller's attention.
See More
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- Advanced Process Expansion: TSMC plans to start mass production of 3nm chips at its Kumamoto facility in Japan by 2028, targeting a monthly capacity of 15,000 12-inch wafers, marking Japan's first domestic production of 3nm chips and enhancing its competitiveness in high-performance computing and AI.
- Significant Investment: The investment for the second fab plant has reached $17 billion, primarily supported by substantial Japanese government subsidies, reflecting TSMC's commitment to the Japanese market and its strategy to diversify production amid geopolitical risks.
- Notable Technology Upgrade: The upgrade from the initially planned 6-12nm processes to the advanced 3nm technology significantly expands semiconductor manufacturing capabilities, addressing the surging demand for AI chips and laying the groundwork for future electronic products.
- Deepening Strategic Cooperation: The project's advancement is bolstered by the trust between Taiwan and Japan, with TSMC CEO CC Wei announcing the initiative during talks with Japan's PM Sanae Takaichi in 2026, further solidifying bilateral cooperation in the semiconductor sector.
See More
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- Market Optimism: President Trump's statement that the Iran war could end in 'two to three weeks' sparked optimism across the market, leading major chip stocks like Nvidia, Intel, and AMD to rise approximately 0.5% in premarket trading on Wednesday.
- TSMC Expansion Plans: Taiwan Semiconductor Manufacturing Company (TSMC) plans to begin mass production of 3 nm chips at its second Japanese fab in 2028, targeting a monthly output of 15,000 12-inch wafers, marking a significant technological advancement and enhancing its competitive position.
- Broad Market Gains: The optimism surrounding Trump's remarks and the opening of a new quarter led to widespread gains in the stock market, with TSMC climbing 1.2% in premarket trading, reflecting positive sentiment regarding a potential resolution to the U.S.-Iran conflict.
- Retail Sentiment Shift: As of April 1, retail sentiment for TSMC on Stocktwits shifted from 'bearish' to 'neutral', with investors posting about increasing their positions, indicating a growing confidence in the company's future performance.
See More
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- Nvidia's Market Performance: Nvidia (NVDA) shares have declined about 7.5% over the past month, and while its strong earnings report failed to alleviate long-term growth concerns, the surge in AI infrastructure spending, with the five largest hyperscalers projected to spend around $700 billion this year, indicates robust market demand and future growth potential.
- Micron Technology Outlook: Micron Technology (MU) shares have fallen approximately 15% in the past month despite exceeding fiscal Q2 expectations, with a forward P/E of just 3.5 times fiscal 2027 estimates, showcasing strong performance in the DRAM and NAND markets, and the potential to stabilize revenue through long-term contracts could break the cyclical pattern.
- Taiwan Semiconductor's Market Position: Taiwan Semiconductor Manufacturing (TSM) shares have pulled back about 10% over the past month, but as the world's largest chip manufacturer, its critical role in AI infrastructure cannot be overlooked, with expected demand for high-performance CPUs and the emerging robotaxi market driving long-term growth, despite short-term uncertainties from the Middle East situation.
- Investment Opportunities in AI Infrastructure: With the rapid advancement of AI technology, companies like Nvidia, Micron, and TSMC are becoming focal points for investors, especially in the context of current stock price pullbacks, suggesting that investing in these firms could yield substantial returns.
See More
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- Market Capital Showdown: In this episode, Motley Fool analysts Emily Flippen and Bill Barker faced off in a market cap range challenge involving 10 companies, engaging listeners and enhancing the show's interactivity.
- Championship Battle: Emily, the reigning Market Cap Game Show world champion, showcased her investment analysis skills against Bill, ultimately winning with a score of 7 to 3, solidifying her champion status.
- Investor Education: The show utilized a fun game format to help listeners understand the significance of market caps, increasing public interest in investing and promoting financial literacy.
- Industry Insights: Analysts discussed the market performance of various companies, including Adyen and PayCom, providing deep insights into current market dynamics to assist investors in making informed decisions.
See More
Druckenmiller Increases Holdings in Alphabet and Amazon Stocks
- Stock Accumulation: In the fourth quarter, Druckenmiller increased his holdings by 282,800 shares of Alphabet (GOOGL) and 300,870 shares of Amazon (AMZN), boosting his stakes by 277% and 69% respectively, indicating strong confidence in both companies.
- AI Investment Surge: Druckenmiller's interest in Alphabet and Amazon stems from their integration of generative AI solutions into cloud infrastructure, which has driven growth, particularly with Google Cloud achieving a 48% revenue increase in Q4.
- Market Valuation Advantage: Alphabet and Amazon are trading at 14.3 times and 9.7 times their projected cash flows respectively, both significantly below their average multiples over the past five years, highlighting a valuation discount that has attracted Druckenmiller's attention.
- Industry Influence: Druckenmiller's investment strategy underscores the importance of AI technology, with projections indicating that AI will create over $15 trillion in global economic value by 2030, further solidifying Alphabet and Amazon's leadership positions in the market.
See More
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- Increased Google Holdings: Druckenmiller added 282,800 shares of Alphabet's Class A stock in Q4, boosting his stake by 277%, which reflects strong confidence in the company's growth potential, particularly driven by AI advancements.
- Amazon Investment Growth: He also increased his holdings in Amazon by 300,870 shares, a 69% rise, indicating optimism about Amazon's continued growth in cloud computing and e-commerce, especially with the integration of AI solutions.
- AI Market Potential: Druckenmiller's investment choices highlight AI as the biggest technological leap since the internet, with projections of over $15 trillion in global economic value by 2030, further solidifying Google's and Amazon's market leadership.
- Valuation Attractiveness: Both Google and Amazon are trading at relatively low valuations of 14.3 times and 9.7 times their projected future cash flows, respectively, which are below their historical averages, indicating significant potential for returns on AI investments that have caught Druckenmiller's attention.
See More
