TSM Stock Recent News

Taiwan Semiconductor Manufacturing NYSE: TSM is making a massive investment in the United States. This move may be the biggest economic success for the Trump administration so far.

Intel is facing tough times after its stock plunged 60% in 2024 and it ousted its CEO Pat Gelsinger. Lip-Bu Tan has been tapped as new CEO for the semiconductor company as it has struggled with both chip manufacturing and chip designing.

Tech stocks have hit a rough patch, dragging the broader market lower after leading the rally in 2023 and 2024.

The semiconductor industry has been the center of attention for investors looking to get into the United States technology sector. However, after a couple of years of nothing but upside, it seems that all of the good news had been priced into the stratospheric rallies seen in names like NVIDIA Co. NASDAQ: NVDA, but that volatility might be about to reverse on a new announcement.

Investing in tech stocks right now can look like a dangerous proposition, given the weakness in the markets of late. If tariffs and trade wars sink the economy into a recession, tech spending could come under pressure, and the growth in artificial intelligence (AI) could slow drastically.

The market sell-off focusing on technology stocks has hit several of my top stocks fairly hard. However, I don't think that this is the time to panic; instead, investors should look at this sell-off as a buying opportunity.

TSMC investors endured a brutal round trip as Mr. Market sent the stock spiraling downward. TSMC's reliance on key US customers and geopolitical tensions pose risks, but AI growth and capex investments underpin long-term prospects. TSMC's dominance in advanced chip production is crucial for the AI ambitions of US chip designers.

Technology stocks witnessed a significant pullback of late, as evidenced by the 13% decline in the Nasdaq-100 Technology Sector index in the past month. Investor sentiment soured due to the trade war sparked by the tariffs announced by the Trump administration on Canada, Mexico, and China, which led those nations to announce retaliatory tariffs on U.S. goods.

TSMC dominates the semiconductor market with advanced 3 nm chips, crucial for AI, robotics, and defense, making it a strategic asset. The stock's recent 20% drop offers an excellent entry point, with TSMC outperforming the S&P 500 over the last 10 years. TSMC's solid financials include a 59% gross margin, 49% operating margin, and a strong balance sheet with $76.3 bn in cash.

Taiwan Semiconductor Manufacturing Company is increasingly expanding its market share lead as the prime foundry. Recent capital expenditure fears driven by DeepSeek have been dispelled as hyperscalers increase their spending forecasts. TSMC has the first-mover advantage as the most advanced foundry, deterring other competitors from trying to compete.