Taiwan Semiconductor Fuels Japan's Land Boom With New Chip Plants: Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 17 2024
0mins
Should l Buy AMZN?
Source: Benzinga
Taiwan Semiconductor's Impact on Japan: Taiwan Semiconductor Manufacturing Co (TSMC) has significantly contributed to a 33.3% increase in land prices in Japan due to its new chip plants, with plans for further investments totaling $13.5 billion and $20 billion for additional facilities.
Stock Performance and Market Position: TSMC's stock has surged over 88% in the past year, driven by demand from major tech companies for AI technology, despite a recent decline of 1.14% in stock price.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMZN is 294.69 USD with a low forecast of 250.00 USD and a high forecast of 340.00 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.
47 Analyst Rating
46 Buy
1 Hold
0 Sell
Strong Buy
Current: 204.080
Low
250.00
Averages
294.69
High
340.00
Current: 204.080
Low
250.00
Averages
294.69
High
340.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
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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- Enhanced Patient Experience: John Love, Vice President of Amazon Pharmacy, stated that by combining pharmacy expertise with logistics networks, they aim to remove critical barriers for patients in accessing medications, thereby accelerating the start of treatment and improving overall medication experiences.
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- Market Panic Overreaction: AWS Chief Matt Garman stated that investor fears regarding AI models potentially slowing software company growth are overblown, emphasizing that core business metrics have not deteriorated, reflecting an excessive market reaction to technology stocks.
- AI-Driven Industry Transformation: Garman noted that AI will change how software is consumed and built, and while large SaaS providers face challenges, they still have an advantage in innovation and must continuously evolve to avoid disruption.
- Sustained Customer Demand: AWS anticipates that customers will require more compute technology and infrastructure than ever before, whether self-built, AI-based, or purchased from SaaS vendors, indicating ongoing demand for cloud services and market potential.
See More
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- Microsoft's Earnings Reaction: Despite reporting a 17% year-over-year revenue increase and a 21% rise in operating income, Microsoft's stock fell 17% due to concerns over its plan to spend over $100 billion on capex this year, indicating market skepticism about its AI investments.
- SaaS Sector Struggles: Software companies like Salesforce and Adobe have seen significant stock price declines as investors fear that advancements in AI will severely disrupt the enterprise software industry, leading to a phenomenon dubbed the
See More
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- Market Performance Decline: Despite becoming the largest company in the world by sales over the past 12 months, Amazon's stock has dropped 8% in the past year, reflecting market concerns about its future performance, prompting investors to carefully assess the timing of potential purchases.
- Increased Capital Expenditure: Amazon plans to raise its capital expenditure to $200 billion by 2026 to capitalize on significant opportunities in cloud computing and artificial intelligence, with CEO Andy Jassy emphasizing that building the necessary infrastructure is crucial to seizing these opportunities.
- Accelerated Cloud Growth: Amazon Web Services (AWS) experienced a 24% year-over-year sales growth in the fourth quarter, with a 60% sequential increase in customers using its AI builder, Bedrock, indicating strong market demand for its cloud services.
- Cash Flow Changes: Although Amazon's price-to-earnings ratio is near a multi-decade low of 29, its free cash flow has decreased to $11.2 billion year-over-year, primarily due to spending on AI investments, making the current stock price decline somewhat justifiable, with patient investors likely to see returns in the future.
See More
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- Investor Concerns: Major AI and software stocks have declined year-to-date due to worries about AI spending and industry disruption, with Amazon and Microsoft seeing stock drops of approximately 9% and 17%, respectively, reflecting market skepticism about their planned capital expenditures of $200 billion and $100 billion.
- SaaS Industry Crisis: As AI technology advances, investors are increasingly anxious about the future of software-as-a-service (SaaS) companies, with some labeling the situation as the 'SaaSpocalypse,' leading to significant declines in stocks like Salesforce and Adobe, indicating concerns over traditional software profitability.
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