timothy sykes logo

Stock News

Could TSMC’s New Partnerships Boost Its Stock Performance?

Timothy SykesAvatar
Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs

Taiwan Semiconductor Manufacturing Company Ltd.’s shares saw a notable rise of 3.92 percent on Thursday. This uptick can be attributed to several key factors, including positive industry trends and potential advancements in semiconductor technology. Additionally, recent news highlighting the successful partnership with major tech firms and expansion plans into new markets have bolstered investor confidence, driving the stock price higher.

  • AMD, together with TSMC, won the contract over Intel to design and fabricate chips for Sony’s PS6. This marks a significant win, potentially adding billions in revenue.
  • ByteDance is partnering with TSMC to mass produce two AI chips by 2026, aiming to reduce reliance on Nvidia’s chips for AI model development and operation.
  • The European Commission approved a EUR 5B measure to support a microchip manufacturing plant in Dresden, supported by TSM among other companies.
  • Intel’s strategic pivot to use an external node, likely from TSMC, for its Arrow Lake processors, signals a significant opportunity for TSMC, potentially increasing its business dealings with Intel.

Candlestick Chart

Live Update at 08:36:09 EST: On Thursday, September 19, 2024 Taiwan Semiconductor Manufacturing Company Ltd. stock [NYSE: TSM] is trending up by 3.92%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick overview of Taiwan Semiconductor Manufacturing Company’s Financials:

Post image

Get my weekly watchlist, free

Sign up to jump start your trading education!

The TSM stock has been on a rollercoaster recently. On 19 Sep 2024, its stock opened at $174.38, hitting a high of $175.22 before closing at $173.88. A snapshot of TSMC’s financial health tells us a lot about why investors are keeping a close eye. Breaking it down, the company boasts a pre-tax profit margin of 42.3. Not many companies can show off those kinds of margins.

TSMC’s revenue hit a whopping $2.16 trillion, with earnings per share sitting at 416.8074. It’s clear, this company brings in serious cash. Under valuation measures, the price-to-earnings ratio is 40.16, high but forgivable for a tech behemoth. The enterprise value standing tall at $867.95 billion lets us know TSMC is seen as valuable beyond just stock price.

Current Market Insights:

  • AMD clinching the contract with TSMC over Intel is a huge win. Imagine designing the next wave of gaming consoles! Sony’s PS6 will be running on TSMC-built chips. Gamers, tech buffs, and general investors watch, as TSMC stands to pocket billions.
  • ByteDance making moves with TSMC? That’s about as close to a home run as you can get in today’s tech-driven world. Producing two AI chips by 2026 shows foresight and ambition. It’s a partnership aimed at reducing dependency on Nvidia’s market-dominating chips. Exciting times ahead, and it’s clear TSMC is more than keeping pace—they’re setting it.
  • Europe’s move to greenlight a EUR 5B measure in Dresden isn’t just news; it’s a beacon. TSM ain’t alone, but their involvement in this project? It could lead to a significant bump in capabilities and reach.
  • Intel seeking external nodes for Arrow Lake processors, probably from TSMC. This is like watching an old rival extend an olive branch and paves the way for more collaborations, likely increasing TSMC’s business share with one of its biggest competitors.

Speculated Stock Performance Based on the News:

These partnerships and strategic wins indicate more than just added zeros to TSMC’s revenue. They reflect strategic growth and market positioning. TSMC tightening its grip on the AI, gaming, and semi sector means we could see further upticks in stock value, contingent on how these projects deliver and the overall market sentiment.

More Breaking News

Impactful News and What It Means for the Market:

Walking through the recent headlines, each piece of news isn’t just a buzz; it has real implications. For example, the AMD-TSMC-Sony contract isn’t just about winning over Intel— it’s a declaration. It shows TSMC’s dominance in the semiconductor space, signaling reliability and performance capabilities.

Next, ByteDance and TSM’s partnership targeting Nvidia’s hegemony in AI chips gives TSMC an incredibly bullish outlook. Unlike other fleeting news, this partnership could disrupt current market leaders. The stocks might reflect higher expectations eventually translating into stronger positions for TSMC in the AI domain.

Then there’s the European Commission’s €5B endorsement, symbolizing confidence. Imagine a new manufacturing haven emerging in Dresden. Future production scales up efficiency and output capacity for TSMC—essentially underlining dominance in Europe and stretching its geopolitical importance.

Lastly, Intel’s reliance on TSMC’s nodes opens untold doors. Picture Intel chips humming with TSMC efficacy. This isn’t just a one-off— it’s a roadmap towards potentially more deals, shared tech innovations, and growing revenue streams between both tech giants.

Conclusion:

Summing up, Taiwan Semiconductor Manufacturing Company’s future looks bright, painted with new partnerships, strategic wins, and sizable financial yields. These developments likely won’t just fade away. They could critically reshape TSMC’s market presence, stock performance, and influence. So, investors better buckle up. This ride seems far from over!

In today’s volatile market, TSMC has shown both resilience and forward-thinking. With these partnerships in motion, we’re looking at a potential game-changer— not just for TSMC but the entire semiconductor space. The confluence of innovative leaps and strategic collaborations paints a promising picture. The question remains: Will you be watching from the sidelines, or are you buckling in for the journey?

Curious about this stock and eager to learn more? Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success. Start your journey towards financial growth and trading mastery!

But wait, there’s more! Elevate your trading game with StocksToTrade, the ultimate platform for traders. With specialized tools for swing and day trading, StocksToTrade harnesses the power of Artificial Intelligence to guide you through the market’s twists and turns. Discover insights on Robinhood penny stocks and top biotech picks to fuel your trading journey:

Ready to embark on your financial adventure? Click the links and let the journey unfold.

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply
Author card Timothy Sykes picture

Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”