Qualcomm Will Benefit From Edge AI Strength In Smartphones And PCs, Analyst Says
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 14 2024
0mins
Should l Buy TSM?
Source: Benzinga
Qualcomm's Market Performance: Qualcomm shares are down 1.92% at $166.22, despite an Overweight rating and a $225 price target from KeyBanc Capital Markets due to strong positioning in AI for smartphones and PCs, as well as growth in the auto sector.
Financial Results and Guidance: Qualcomm reported Q3 revenues of $9.4 billion, exceeding estimates, with EPS of $2.33. However, guidance for Q4 indicates potential challenges, including the impact of losing its license to sell to Huawei, projecting revenue between $9.5 billion and $10.3 billion.
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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: 368.100
Low
63.24
Averages
313.46
High
390.00
Current: 368.100
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: 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
DA Davidson Initiates Buy Rating on TSMC with $450 Target
- Coverage Initiation: DA Davidson has initiated coverage on Taiwan Semiconductor (TSM) with a Buy rating and a $450 price target, reflecting confidence in its strong execution in advanced manufacturing, which is expected to drive sustained advantages in the growing AI compute demand.
- Stock Price Increase: TSM shares rose fractionally in premarket trading, indicating a positive market reaction to the analyst's rating, which may attract more investor interest and enhance its market performance.
- AI Compute Demand Driver: Analysts noted that TSM's advantages in leading-edge manufacturing will be reinforced as AI compute demand scales, creating a self-reinforcing competitive edge that suggests significant growth potential for the company.
- Significant Sales Growth: TSM's January sales surged 37% year-over-year, further solidifying market confidence in its future performance and demonstrating the company's continued leadership position in the semiconductor industry.
See More
Latest Wall Street Rating Updates
- Coinbase Rating Maintained: Bernstein reiterates Coinbase as outperform, noting that despite Q4 revenue missing estimates by 3% and a 28% drop in adjusted EPS to $0.66, the stock remains undervalued, indicating long-term optimism.
- Instacart's Strong Performance: Barclays maintains an overweight rating on Instacart, highlighting its rare beat-and-raise earnings report in the internet earnings cycle, suggesting a unique advantage in a competitive market that may attract more investor interest.
- Airbnb Upgraded to Buy: Deutsche Bank upgrades Airbnb from hold to buy, stating that while it faces AI disruption risks, its unique supply chain offers more insulation compared to peers, which is likely to draw more investor attention.
- CrowdStrike's Attractive Valuation: HSBC upgrades CrowdStrike from hold to buy, citing attractive current valuation and projecting a non-GAAP EPS CAGR of 38.3% over FY26-29, indicating strong growth potential.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, including upgrades, downgrades, and initiations, reflecting varying market perspectives on these firms.
- Market Focus: Analysts' views on TSM stock have garnered investor attention, indicating ongoing interest and potential investment opportunities within the semiconductor sector.
- Impact of Rating Changes: These rating adjustments may influence investor decisions, particularly in the current economic climate where analysts' opinions are considered vital market signals.
- Source of Information: A complete overview of analyst rating changes can be found on Benzinga's analyst ratings page, providing a comprehensive market perspective and data support.
See More
AI Wave and Market Bubble Warning
- Market Performance Weakness: In 2026, the S&P 500 has gained less than 2% while the Nasdaq Composite remains unchanged, indicating a weakening market sentiment that investors need to navigate cautiously amid current volatility.
- Valuation Metrics Warning: The S&P 500 Shiller CAPE ratio is hovering near 40, a level only seen before the 2000 internet bubble, raising concerns among investors about a potential repeat of 1999, necessitating vigilance regarding underlying risks.
- AI vs. Internet Bubble Comparison: While the current AI revolution is often labeled a bubble, unlike the late 1990s, companies like Amazon, Google, and Microsoft are generating profits, suggesting a more sustainable business model amidst the AI wave.
- Investment Strategy Adjustment: As market uncertainty increases, investors should reduce exposure to volatile stocks and shift towards blue-chip stocks with resilient business models to mitigate risks and capitalize on buying opportunities during market corrections.
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
DA Davidson Initiates Buy Rating on TSMC with $450 Target
- Coverage Initiation: DA Davidson has initiated coverage on Taiwan Semiconductor (TSM) with a Buy rating and a $450 price target, reflecting confidence in its strong execution in advanced manufacturing, which is expected to drive sustained advantages in the growing AI compute demand.
- Stock Price Increase: TSM shares rose fractionally in premarket trading, indicating a positive market reaction to the analyst's rating, which may attract more investor interest and enhance its market performance.
- AI Compute Demand Driver: Analysts noted that TSM's advantages in leading-edge manufacturing will be reinforced as AI compute demand scales, creating a self-reinforcing competitive edge that suggests significant growth potential for the company.
- Significant Sales Growth: TSM's January sales surged 37% year-over-year, further solidifying market confidence in its future performance and demonstrating the company's continued leadership position in the semiconductor industry.
See More
Latest Wall Street Rating Updates
- Coinbase Rating Maintained: Bernstein reiterates Coinbase as outperform, noting that despite Q4 revenue missing estimates by 3% and a 28% drop in adjusted EPS to $0.66, the stock remains undervalued, indicating long-term optimism.
- Instacart's Strong Performance: Barclays maintains an overweight rating on Instacart, highlighting its rare beat-and-raise earnings report in the internet earnings cycle, suggesting a unique advantage in a competitive market that may attract more investor interest.
- Airbnb Upgraded to Buy: Deutsche Bank upgrades Airbnb from hold to buy, stating that while it faces AI disruption risks, its unique supply chain offers more insulation compared to peers, which is likely to draw more investor attention.
- CrowdStrike's Attractive Valuation: HSBC upgrades CrowdStrike from hold to buy, citing attractive current valuation and projecting a non-GAAP EPS CAGR of 38.3% over FY26-29, indicating strong growth potential.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, including upgrades, downgrades, and initiations, reflecting varying market perspectives on these firms.
- Market Focus: Analysts' views on TSM stock have garnered investor attention, indicating ongoing interest and potential investment opportunities within the semiconductor sector.
- Impact of Rating Changes: These rating adjustments may influence investor decisions, particularly in the current economic climate where analysts' opinions are considered vital market signals.
- Source of Information: A complete overview of analyst rating changes can be found on Benzinga's analyst ratings page, providing a comprehensive market perspective and data support.
See More
AI Wave and Market Bubble Warning
- Market Performance Weakness: In 2026, the S&P 500 has gained less than 2% while the Nasdaq Composite remains unchanged, indicating a weakening market sentiment that investors need to navigate cautiously amid current volatility.
- Valuation Metrics Warning: The S&P 500 Shiller CAPE ratio is hovering near 40, a level only seen before the 2000 internet bubble, raising concerns among investors about a potential repeat of 1999, necessitating vigilance regarding underlying risks.
- AI vs. Internet Bubble Comparison: While the current AI revolution is often labeled a bubble, unlike the late 1990s, companies like Amazon, Google, and Microsoft are generating profits, suggesting a more sustainable business model amidst the AI wave.
- Investment Strategy Adjustment: As market uncertainty increases, investors should reduce exposure to volatile stocks and shift towards blue-chip stocks with resilient business models to mitigate risks and capitalize on buying opportunities during market corrections.
See More
