Looking for Exposure to TSLA Stock? Try These Two ETFs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 03 2025
0mins
Should l Buy TSM?
Source: TipRanks
Tesla's Growth and Market Position: Tesla (TSLA) shows strong growth potential in the electric vehicle market, supported by advancements in autonomous driving and cost efficiency, despite concerns over delivery drops. Investors can gain exposure to TSLA through ETFs like Nightview Fund (NITE) and Vanguard Consumer Discretionary ETF (VCR).
ETF Details and Performance: The NITE ETF, with a 19.1% allocation to TSLA, has a Moderate Buy rating and a 22.59% upside potential, while the VCR ETF, which holds 13.67% of TSLA, also has a Moderate Buy rating with a 23.65% upside potential, making both ETFs attractive options for investors seeking indirect exposure to Tesla.
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Analyst Views on TSM
Wall Street analysts forecast TSM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSM is 313.46 USD with a low forecast of 63.24 USD and a high forecast of 390.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 374.090
Low
63.24
Averages
313.46
High
390.00
Current: 374.090
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: The Leader in AI Chip Market
- Market Share Growth: TSMC currently accounts for nearly 75% of global chip manufacturing revenue, playing a crucial role in AI chip production, and is expected to further solidify its market position as big tech continues to invest in AI.
- Future Investment Outlook: Global data center investments are projected to approach $7 trillion by 2030, with TSMC benefiting as a primary chip supplier, driving an estimated 25% annual earnings growth in the future.
- Stock Performance: Despite a 65% increase in stock price over the past year, TSMC's price-to-earnings ratio remains below 25, indicating its investment value in the rapidly growing AI market, attracting investor interest.
- Competitive Advantage: TSMC's dominant position in AI chip production allows it to maintain an edge over competitors, making it unlikely for other foundries to displace it, with expectations of continued new highs in the coming year.
See More
Taiwan Semiconductor's Capital Budgeting Focuses on Front-End Technology
- Capital Budget Focus: Bank of America analyst Haas Liu noted that Taiwan Semiconductor's capital budgeting is skewed towards advanced front-end manufacturing and facility upgrades, indicating a strong commitment to future technology developments, particularly in 3nm and 2nm expansions.
- Quarterly Dividend Approval: On Tuesday, Taiwan Semiconductor approved a quarterly dividend of NT$6.0 per share and allocated $45 billion for fab construction and upgrades in advanced front-end and specialty technologies, demonstrating the company's ongoing investment in capacity and technological advancement.
- Significant Revenue Growth: Taiwan Semiconductor reported a 37% year-over-year revenue increase in January, reflecting its critical role in the AI boom and further solidifying its position as a key foundry supplier.
- Positive Future Outlook: Bank of America maintains a Buy rating with a price target of NT$2,360, indicating market optimism regarding the company's future capital expenditures and technological advancements, especially in AI and advanced packaging sectors.
See More
Why TSMC is Outperforming Nvidia
- Market Performance Comparison: Over the past six months, Nvidia's stock has risen only 3%, while TSMC's stock has surged over 43%, indicating differing market expectations and confidence in the two companies.
- Revenue Growth Expectations: TSMC anticipates a nearly 30% revenue increase in 2026, reaching $159 billion, driven by higher prices for its advanced chip nodes and increased production capacity, potentially elevating its market cap to $2.4 trillion.
- Industry Dependency: As a fabless semiconductor manufacturer, Nvidia relies on TSMC for chip production, while TSMC serves multiple companies, including Broadcom, AMD, and Qualcomm, solidifying its central role in the AI chip market.
- Valuation Discrepancy: Despite Nvidia's projected 52% revenue growth for fiscal 2027, its price-to-sales ratio stands at 24 times, significantly higher than TSMC's 15 times, suggesting that investors may find TSMC a more attractive value play.
See More
S&P 500 Overvaluation: Time to Consider International ETFs
- U.S. Market Struggles: The S&P 500 has had a shaky start this year, yet it remains up 75% over the past five years, with a current P/E ratio of 30, indicating a historically high valuation that may deter new investors.
- Tech Stocks Dominate: The recent rally has been primarily driven by a handful of mega-cap tech stocks, such as Nvidia, Microsoft, and Apple, leading to concerns about market overheating due to the lack of broader stock participation.
- International ETF Opportunity: The Vanguard Total International Stock ETF (VXUS) emerges as an ideal investment choice, featuring a low expense ratio of 0.05% and holding 8,646 stocks, providing extensive exposure to overseas markets, particularly in emerging markets and Europe.
- VXUS Strong Performance: VXUS has rallied 9% year-to-date while the S&P 500 has remained flat, indicating a shift among investors towards diversifying their portfolios away from the overheated U.S. market, which could further propel VXUS's growth.
See More
Wall Street Tech Stocks Lose Over $500 Billion in Value
- Market Value Loss: On Thursday, Wall Street's tech sector saw over $500 billion wiped off market value across 10 major companies, indicating a sharp decline in investor confidence amid simultaneous pressures on both software and hardware sectors.
- Cisco Earnings Impact: Cisco's stock plummeted 11% despite reporting earnings of $1.04 per share, exceeding expectations, as the company’s gross margin guidance of 65.5%-66.5% fell short of the 68% consensus, highlighting the impact of rising hardware costs.
- Memory Shortage Risks: Lenovo confirmed mounting pressure on PC shipments, with CEO Yang Yuanqing stating that while unit pressures are expected, the company aims to maintain profitability, reflecting growing concerns over memory shortages in the industry.
- Software Sector Decline: The iShares Expanded Tech-Software Sector ETF dropped over 3% on Thursday, with the sector down over 20% year-to-date, illustrating the ongoing impact of fears surrounding AI disruption on software stock performance.
See More
ASML Stock Expected to Surge Due to AI Market Expansion
- Surging Market Demand: ASML's stock has rallied about 90% over the past year, and as the AI market expands, it is expected to surge even higher, reflecting strong demand for its advanced lithography systems.
- Monopoly Advantage: As the world's only producer of extreme ultraviolet (EUV) lithography systems, ASML's technology is widely adopted by top semiconductor manufacturers like TSMC, Samsung, and Intel, ensuring its critical role in chip production.
- Revenue Growth Expectations: ASML anticipates its revenue will reach between €44 billion (approximately $52.3 billion) and €60 billion (approximately $71.3 billion) by 2030, indicating a 10% compound annual growth rate (CAGR) from 2025, showcasing its long-term growth potential.
- Strong Profitability: Although ASML's price-to-earnings ratio stands at 41, indicating a premium valuation, its dominance in crucial chipmaking technology and direct exposure to the booming AI market justify this premium, with expectations for continued stock price growth into 2026 and beyond.
See More
TSMC: The Leader in AI Chip Market
- Market Share Growth: TSMC currently accounts for nearly 75% of global chip manufacturing revenue, playing a crucial role in AI chip production, and is expected to further solidify its market position as big tech continues to invest in AI.
- Future Investment Outlook: Global data center investments are projected to approach $7 trillion by 2030, with TSMC benefiting as a primary chip supplier, driving an estimated 25% annual earnings growth in the future.
- Stock Performance: Despite a 65% increase in stock price over the past year, TSMC's price-to-earnings ratio remains below 25, indicating its investment value in the rapidly growing AI market, attracting investor interest.
- Competitive Advantage: TSMC's dominant position in AI chip production allows it to maintain an edge over competitors, making it unlikely for other foundries to displace it, with expectations of continued new highs in the coming year.
See More
Taiwan Semiconductor's Capital Budgeting Focuses on Front-End Technology
- Capital Budget Focus: Bank of America analyst Haas Liu noted that Taiwan Semiconductor's capital budgeting is skewed towards advanced front-end manufacturing and facility upgrades, indicating a strong commitment to future technology developments, particularly in 3nm and 2nm expansions.
- Quarterly Dividend Approval: On Tuesday, Taiwan Semiconductor approved a quarterly dividend of NT$6.0 per share and allocated $45 billion for fab construction and upgrades in advanced front-end and specialty technologies, demonstrating the company's ongoing investment in capacity and technological advancement.
- Significant Revenue Growth: Taiwan Semiconductor reported a 37% year-over-year revenue increase in January, reflecting its critical role in the AI boom and further solidifying its position as a key foundry supplier.
- Positive Future Outlook: Bank of America maintains a Buy rating with a price target of NT$2,360, indicating market optimism regarding the company's future capital expenditures and technological advancements, especially in AI and advanced packaging sectors.
See More
Why TSMC is Outperforming Nvidia
- Market Performance Comparison: Over the past six months, Nvidia's stock has risen only 3%, while TSMC's stock has surged over 43%, indicating differing market expectations and confidence in the two companies.
- Revenue Growth Expectations: TSMC anticipates a nearly 30% revenue increase in 2026, reaching $159 billion, driven by higher prices for its advanced chip nodes and increased production capacity, potentially elevating its market cap to $2.4 trillion.
- Industry Dependency: As a fabless semiconductor manufacturer, Nvidia relies on TSMC for chip production, while TSMC serves multiple companies, including Broadcom, AMD, and Qualcomm, solidifying its central role in the AI chip market.
- Valuation Discrepancy: Despite Nvidia's projected 52% revenue growth for fiscal 2027, its price-to-sales ratio stands at 24 times, significantly higher than TSMC's 15 times, suggesting that investors may find TSMC a more attractive value play.
See More
S&P 500 Overvaluation: Time to Consider International ETFs
- U.S. Market Struggles: The S&P 500 has had a shaky start this year, yet it remains up 75% over the past five years, with a current P/E ratio of 30, indicating a historically high valuation that may deter new investors.
- Tech Stocks Dominate: The recent rally has been primarily driven by a handful of mega-cap tech stocks, such as Nvidia, Microsoft, and Apple, leading to concerns about market overheating due to the lack of broader stock participation.
- International ETF Opportunity: The Vanguard Total International Stock ETF (VXUS) emerges as an ideal investment choice, featuring a low expense ratio of 0.05% and holding 8,646 stocks, providing extensive exposure to overseas markets, particularly in emerging markets and Europe.
- VXUS Strong Performance: VXUS has rallied 9% year-to-date while the S&P 500 has remained flat, indicating a shift among investors towards diversifying their portfolios away from the overheated U.S. market, which could further propel VXUS's growth.
See More
Wall Street Tech Stocks Lose Over $500 Billion in Value
- Market Value Loss: On Thursday, Wall Street's tech sector saw over $500 billion wiped off market value across 10 major companies, indicating a sharp decline in investor confidence amid simultaneous pressures on both software and hardware sectors.
- Cisco Earnings Impact: Cisco's stock plummeted 11% despite reporting earnings of $1.04 per share, exceeding expectations, as the company’s gross margin guidance of 65.5%-66.5% fell short of the 68% consensus, highlighting the impact of rising hardware costs.
- Memory Shortage Risks: Lenovo confirmed mounting pressure on PC shipments, with CEO Yang Yuanqing stating that while unit pressures are expected, the company aims to maintain profitability, reflecting growing concerns over memory shortages in the industry.
- Software Sector Decline: The iShares Expanded Tech-Software Sector ETF dropped over 3% on Thursday, with the sector down over 20% year-to-date, illustrating the ongoing impact of fears surrounding AI disruption on software stock performance.
See More
ASML Stock Expected to Surge Due to AI Market Expansion
- Surging Market Demand: ASML's stock has rallied about 90% over the past year, and as the AI market expands, it is expected to surge even higher, reflecting strong demand for its advanced lithography systems.
- Monopoly Advantage: As the world's only producer of extreme ultraviolet (EUV) lithography systems, ASML's technology is widely adopted by top semiconductor manufacturers like TSMC, Samsung, and Intel, ensuring its critical role in chip production.
- Revenue Growth Expectations: ASML anticipates its revenue will reach between €44 billion (approximately $52.3 billion) and €60 billion (approximately $71.3 billion) by 2030, indicating a 10% compound annual growth rate (CAGR) from 2025, showcasing its long-term growth potential.
- Strong Profitability: Although ASML's price-to-earnings ratio stands at 41, indicating a premium valuation, its dominance in crucial chipmaking technology and direct exposure to the booming AI market justify this premium, with expectations for continued stock price growth into 2026 and beyond.
See More
