Nasdaq Index Rebounds as AMD Stock Rallies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 hours ago
0mins
Should l Buy TSM?
Source: Yahoo Finance
- Market Rebound: The Nasdaq composite index regained upward momentum on Thursday, closing higher after a seesaw session, reflecting investor anticipation of a pending ceasefire between Israel and Lebanon, which may alleviate market uncertainty.
- TSMC Stock Decline: Taiwan Semiconductor Manufacturing Company saw its stock drop by 3% following its earnings report; however, it remains near the high of its current base, indicating sustained market confidence in its long-term performance.
- AMD Stock Breakout: Advanced Micro Devices, a data-center chip innovator, experienced a breakout with its stock rallying nearly 8% on heavy turnover, signaling strong market recognition of its future growth potential.
- Improved Investor Sentiment: As concerns over geopolitical risks diminish, investor sentiment has improved, potentially driving more capital into tech stocks and further supporting the market's rebound.
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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: 375.100
Low
63.24
Averages
313.46
High
390.00
Current: 375.100
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 Reports Strong Q1 Earnings Exceeding Expectations
- Earnings Beat: TSMC's Q1 GAAP EPS of $3.49 surpassed expectations by $0.11, indicating robust performance in the semiconductor market and likely boosting investor confidence moving forward.
- Significant Revenue Growth: The company reported Q1 revenue of $35.9 billion, a 40.6% year-over-year increase, exceeding market expectations by $410 million, reflecting strong global demand for high-performance computing and AI chips, driving sustained growth.
- Advanced Process Revenue Share: Shipments of 3nm, 5nm, and 7nm technologies accounted for 25%, 36%, and 13% of total wafer revenue, respectively, with advanced technologies (7nm and above) making up 74% of total revenue, showcasing TSMC's competitiveness in the high-end market.
- Optimistic Market Outlook: With ongoing demand for AI, TSMC is expected to continue reporting strong quarterly results, fostering a positive market sentiment that may attract more investor interest.
See More
TSMC Files 2025 Annual Report with SEC
- Annual Report Submission: TSMC today filed its 2025 annual report with the U.S. Securities and Exchange Commission, available on its website, reflecting the company's commitment to transparency and regulatory compliance.
- Technological Strength: By 2025, TSMC deployed 305 distinct process technologies and manufactured 12,682 products for 534 customers, showcasing its leadership and innovation capabilities in the semiconductor industry.
- Global Operations: TSMC's global operations across Asia, Europe, and North America support its role as the world's leading dedicated semiconductor foundry, fostering a thriving ecosystem for global customers and partners.
- Corporate Citizenship: As a global enterprise, TSMC is committed to fulfilling its corporate citizenship responsibilities, actively participating in social and environmental sustainability, thereby further solidifying its reputation in the industry.
See More
Nvidia's Continued Leadership in the AI Market
- Significant Earnings Growth: Nvidia's stock has soared over 1,100% in the past five years, primarily due to its early entry into the AI market and the development of high-performance GPUs, which attracted substantial investor interest and drove explosive earnings growth.
- Strong Market Demand: TSMC reported a 58% increase in first-quarter profits, attributing this to AI chip demand, indicating that Nvidia, as a leader in AI chip design, is expanding its market opportunities and is expected to maintain strong performance in the coming months.
- Commitment to Technology Updates: Nvidia has pledged to update its chips annually, successfully launching Blackwell and Blackwell Ultra in the past year and a half, with the Vera Rubin system set for release in 2026, which will further solidify its market leadership and reduce competitive threats.
- Prospects of the AI Revolution: The shift towards agentic AI is driving increasing demand for high-performance products, suggesting that Nvidia's shareholders could achieve significant gains in the next phase of the AI revolution, reflecting the company's sustained strength in the upcoming quarters.
See More
TSMC Reports Record Profit in Q1 Driven by AI Demand
- Significant Profit Growth: TSMC reported a 58% year-over-year profit increase in Q1, reaching record levels, indicating strong demand for AI chips and reinforcing the company's leadership position in the market.
- Robust Customer Demand: As AI technology rapidly evolves, chip designers like Nvidia are increasingly turning to TSMC for manufacturing support, reflecting an expanding market for high-performance GPUs that further solidifies TSMC's business foundation.
- Optimistic Future Outlook: TSMC's CEO C.C. Wei noted that the shift towards agentic AI is driving the need for greater computational power, which not only benefits Nvidia's revenue growth but also positions it favorably against competitors.
- Sustained Market Leadership: TSMC's ongoing profitability and confidence in AI trends suggest that Nvidia will continue to maintain its market leadership in the coming quarters, with investors anticipating significant wins in the AI revolution.
See More
Market Speculation Risks Resurface
- Speculation Warning: CNBC's Jim Cramer warns that signs of excessive speculation are resurfacing in the market, recalling how last year's speculative stocks led to significant investor losses, indicating that current market enthusiasm may be outpacing necessary investment discipline.
- High-Risk Investment Areas: Cramer highlights high-risk sectors such as unprofitable nuclear startups, quantum computing, and space-related stocks, acknowledging their long-term potential but expressing concern that many smaller companies lack viable business models, which could lead to investor losses again.
- Mature Company Recommendations: For investors seeking exposure to these industries, Cramer recommends established companies with stable earnings and complementary business lines, such as Constellation Energy and GE Vernova, which have extensive experience in nuclear and renewable energy.
- AI Compute Infrastructure: Cramer sharply criticizes Allbirds' pivot plan, noting its stock surged 582% post-announcement but then fell 36%, advising investors to focus on stronger semiconductor firms like Nvidia and TSMC for a more reliable play in the AI compute boom.
See More
AMD Stock Rises on AI Demand Surge
- Stock Price Surge: AMD closed at $278.26 on Thursday, up 7.80%, reflecting investor optimism regarding AI-driven demand, indicating a growing confidence in the semiconductor sector.
- Trading Volume Spike: The trading volume reached 62.8 million shares, about 65% above the three-month average of 38 million shares, demonstrating strong investor interest in AMD's future growth potential.
- Industry Outlook: Despite a slight decline in competitor Nvidia's stock, AMD benefits from TSMC's impressive 41% sales growth in Q1 and an expected 32% revenue increase in Q2, providing a positive market backdrop for AMD's performance.
- Valuation Perspective: Although AMD's stock has tripled over the past year, its forward P/E ratio of 39 remains reasonable given its 32% sales growth last quarter, highlighting the company's potential in the rapidly growing AI market.
See More
TSMC Reports Strong Q1 Earnings Exceeding Expectations
- Earnings Beat: TSMC's Q1 GAAP EPS of $3.49 surpassed expectations by $0.11, indicating robust performance in the semiconductor market and likely boosting investor confidence moving forward.
- Significant Revenue Growth: The company reported Q1 revenue of $35.9 billion, a 40.6% year-over-year increase, exceeding market expectations by $410 million, reflecting strong global demand for high-performance computing and AI chips, driving sustained growth.
- Advanced Process Revenue Share: Shipments of 3nm, 5nm, and 7nm technologies accounted for 25%, 36%, and 13% of total wafer revenue, respectively, with advanced technologies (7nm and above) making up 74% of total revenue, showcasing TSMC's competitiveness in the high-end market.
- Optimistic Market Outlook: With ongoing demand for AI, TSMC is expected to continue reporting strong quarterly results, fostering a positive market sentiment that may attract more investor interest.
See More
TSMC Files 2025 Annual Report with SEC
- Annual Report Submission: TSMC today filed its 2025 annual report with the U.S. Securities and Exchange Commission, available on its website, reflecting the company's commitment to transparency and regulatory compliance.
- Technological Strength: By 2025, TSMC deployed 305 distinct process technologies and manufactured 12,682 products for 534 customers, showcasing its leadership and innovation capabilities in the semiconductor industry.
- Global Operations: TSMC's global operations across Asia, Europe, and North America support its role as the world's leading dedicated semiconductor foundry, fostering a thriving ecosystem for global customers and partners.
- Corporate Citizenship: As a global enterprise, TSMC is committed to fulfilling its corporate citizenship responsibilities, actively participating in social and environmental sustainability, thereby further solidifying its reputation in the industry.
See More
Nvidia's Continued Leadership in the AI Market
- Significant Earnings Growth: Nvidia's stock has soared over 1,100% in the past five years, primarily due to its early entry into the AI market and the development of high-performance GPUs, which attracted substantial investor interest and drove explosive earnings growth.
- Strong Market Demand: TSMC reported a 58% increase in first-quarter profits, attributing this to AI chip demand, indicating that Nvidia, as a leader in AI chip design, is expanding its market opportunities and is expected to maintain strong performance in the coming months.
- Commitment to Technology Updates: Nvidia has pledged to update its chips annually, successfully launching Blackwell and Blackwell Ultra in the past year and a half, with the Vera Rubin system set for release in 2026, which will further solidify its market leadership and reduce competitive threats.
- Prospects of the AI Revolution: The shift towards agentic AI is driving increasing demand for high-performance products, suggesting that Nvidia's shareholders could achieve significant gains in the next phase of the AI revolution, reflecting the company's sustained strength in the upcoming quarters.
See More
TSMC Reports Record Profit in Q1 Driven by AI Demand
- Significant Profit Growth: TSMC reported a 58% year-over-year profit increase in Q1, reaching record levels, indicating strong demand for AI chips and reinforcing the company's leadership position in the market.
- Robust Customer Demand: As AI technology rapidly evolves, chip designers like Nvidia are increasingly turning to TSMC for manufacturing support, reflecting an expanding market for high-performance GPUs that further solidifies TSMC's business foundation.
- Optimistic Future Outlook: TSMC's CEO C.C. Wei noted that the shift towards agentic AI is driving the need for greater computational power, which not only benefits Nvidia's revenue growth but also positions it favorably against competitors.
- Sustained Market Leadership: TSMC's ongoing profitability and confidence in AI trends suggest that Nvidia will continue to maintain its market leadership in the coming quarters, with investors anticipating significant wins in the AI revolution.
See More
Market Speculation Risks Resurface
- Speculation Warning: CNBC's Jim Cramer warns that signs of excessive speculation are resurfacing in the market, recalling how last year's speculative stocks led to significant investor losses, indicating that current market enthusiasm may be outpacing necessary investment discipline.
- High-Risk Investment Areas: Cramer highlights high-risk sectors such as unprofitable nuclear startups, quantum computing, and space-related stocks, acknowledging their long-term potential but expressing concern that many smaller companies lack viable business models, which could lead to investor losses again.
- Mature Company Recommendations: For investors seeking exposure to these industries, Cramer recommends established companies with stable earnings and complementary business lines, such as Constellation Energy and GE Vernova, which have extensive experience in nuclear and renewable energy.
- AI Compute Infrastructure: Cramer sharply criticizes Allbirds' pivot plan, noting its stock surged 582% post-announcement but then fell 36%, advising investors to focus on stronger semiconductor firms like Nvidia and TSMC for a more reliable play in the AI compute boom.
See More
AMD Stock Rises on AI Demand Surge
- Stock Price Surge: AMD closed at $278.26 on Thursday, up 7.80%, reflecting investor optimism regarding AI-driven demand, indicating a growing confidence in the semiconductor sector.
- Trading Volume Spike: The trading volume reached 62.8 million shares, about 65% above the three-month average of 38 million shares, demonstrating strong investor interest in AMD's future growth potential.
- Industry Outlook: Despite a slight decline in competitor Nvidia's stock, AMD benefits from TSMC's impressive 41% sales growth in Q1 and an expected 32% revenue increase in Q2, providing a positive market backdrop for AMD's performance.
- Valuation Perspective: Although AMD's stock has tripled over the past year, its forward P/E ratio of 39 remains reasonable given its 32% sales growth last quarter, highlighting the company's potential in the rapidly growing AI market.
See More
