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Tag: BARGAIN
Here’s 1 Trillion-Dollar Artificial Intelligence (AI) Chip Stock to Buy Hand Over Fist While It’s Still a Bargain
Taiwan Semiconductor is a newer member of the trillion-dollar club after its stock soared 90% in 2024.
There are currently 10 public companies in the world boasting a market capitalization over $1 trillion. Among newer entrants into the trillion-dollar club is chip stock Taiwan Semiconductor Manufacturing (TSM -1.22%).
In 2024, the company, also known as TSMC, gained 90% — essentially doubling the company’s market cap from roughly $500 billion to more than $1 trillion today. Indeed, this is a steep increase in valuation in just 12 months, but what if I told you the stock is still a bargain?
Below, I’ll make the case for why TSMC is attractively priced right now and why it should be on growth investors’ radar.
Examining TSMC’s current financial profile
In the table below, you can see TSMC’s annual growth figures for both revenue and profit across the last several quarters:
Metric Q1 2024 Q2 2024 Q3 2024 Q4 2024 Revenue growth (YOY) 16.5% 40.1% 39.0% 38.8% Earnings per share growth (YOY) 8.9% 36.3% 54.2% 57.0% Data source: Taiwan Semiconductor. YOY = year over year.
Over the last 12 months, TSMC has rapidly accelerated its top-line growth. But more importantly, the company’s gross margin is widening, leading to strong earnings growth as well. With a financial profile like this, it makes sense that shares of TSMC have been soaring to new heights.
Moreover, industry trends suggest the company’s long-term growth potential looks equally robust. Hyperscalers such as Microsoft, Alphabet, Amazon, and Oracle all plan on spending billions on AI infrastructure over the next several years, which will require TSMC’s leading foundry operations.
Data by YCharts.
To my eyes, the revenue and earnings projections illustrated above suggest TSMC is well positioned to continue capturing a significant portion of AI spending as new data centers and chipware emerge onto the scene.
And yet, even with impressive revenue and earnings-per-share projections, TSMC stock is far from expensive.
Image source: Getty Images.
Investors could be significantly underpricing this AI gem
It’s understandable to believe you already missed the boat with TSMC. Stocks do not rise at a 90% pace forever, and a trillion-dollar valuation could give the illusion that shares of TSMC don’t have much higher to go.
The stock trades for $223 as of this writing — nearly an all-time high. Looking at the momentum fueling TSMC could further suggest the stock is overvalued.
However, even with its soaring share price, TSMC’s forward price-to-earnings (P/E) ratio is only 25. I say “only” because the average forward P/E of the S&P 500 is 24.
As I outlined in the table and chart in the prior section, TSMC is a rare example of a business this size that’s accelerating it top- and-bottom-line growth. More importantly, the company’s EPS growth is climbing at a faster rate than sales. This is important to understand because when you analyze TSMC using earnings-based methodologies, the company’s valuation begins to appear much more reasonable.
To me, the current valuation expansion occurring for TSMC is completely appropriate. This is a period of normalization after it traded at a discount to other chip companies for a prolonged period.
I’m bullish that secular tailwinds fueling AI will remain strong, thereby supporting TSMC’s leading position in the chip industry. For this reason, Taiwan Semi could witness many more years of compounding revenue and earnings growth. At its current levels, investors should be pouncing on this growth stock.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adam Spatacco has positions in Alphabet, Amazon, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, Oracle, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Are you looking for the next big investment opportunity in the world of artificial intelligence (AI)? Look no further than this trillion-dollar AI chip stock that is currently flying under the radar. With the potential to revolutionize the way we use technology, this stock is a must-buy for investors looking to capitalize on the AI boom.As AI continues to reshape industries and drive innovation, the demand for high-performance AI chips is only going to increase. This company is at the forefront of developing cutting-edge AI chip technology that is set to disrupt the market and deliver massive returns for shareholders.
Despite its incredible growth potential, this stock is still trading at a bargain price, making it the perfect time to buy in before it takes off. Don’t miss out on this trillion-dollar opportunity to invest in the future of AI technology. Buy this stock hand over fist and watch your portfolio soar to new heights.
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Faustian Bargain: The Soviet-German Partnership and the Origins of the Second World War
Price: $21.07
(as of Jan 02,2025 03:41:44 UTC – Details)
ASIN : B098XSS8T3
Publisher : Oxford University Press (May 28, 2021)
Publication date : May 28, 2021
Language : English
File size : 20999 KB
Text-to-Speech : Enabled
Screen Reader : Supported
Enhanced typesetting : Enabled
X-Ray : Not Enabled
Word Wise : Enabled
Print length : 368 pagesCustomers say
Customers find the book’s research thorough and interesting. They praise the writing style as scholarly and well-written. Many readers recommend it for military history fans, especially those interested in WW2 and the Eastern Front. However, some find the content wordy and overly simplified.
AI-generated from the text of customer reviews
The Faustian Bargain between the Soviet Union and Nazi Germany is a crucial aspect of understanding the origins of the Second World War. In this post, we will delve into the complex dynamics of this partnership and how it ultimately contributed to the outbreak of one of the deadliest conflicts in human history.The Molotov-Ribbentrop Pact, also known as the Nazi-Soviet Pact, was signed on August 23, 1939, just days before the start of World War II. This non-aggression pact between the Soviet Union and Germany contained a secret protocol that divided Eastern Europe into spheres of influence, effectively giving Stalin the green light to occupy the Baltic states, parts of Poland, and other territories.
The motivations behind this pact were multifaceted. For Stalin, it was a strategic move to buy time and strengthen his regime by avoiding a two-front war with Germany and the Allies. He also saw an opportunity to expand Soviet influence in Eastern Europe. For Hitler, the pact provided a temporary reprieve from the threat of a Soviet invasion and allowed him to focus on his military campaigns in Western Europe.
However, this alliance of convenience would not last. In June 1941, Hitler broke the pact and launched Operation Barbarossa, the invasion of the Soviet Union. The Soviet-German partnership had come to a bloody end, and the two totalitarian regimes were now locked in a brutal struggle for dominance over Eastern Europe.
The Faustian Bargain between the Soviet Union and Nazi Germany had far-reaching consequences for the course of the Second World War. It not only facilitated the initial stages of the conflict but also sowed the seeds of mistrust and animosity between the two powers that would shape the post-war world order.
In conclusion, the Soviet-German partnership was a pivotal moment in the lead-up to the Second World War. The decisions made by Stalin and Hitler in the signing of the Molotov-Ribbentrop Pact had profound and lasting effects on the course of history. Understanding this Faustian Bargain is crucial to grasping the complex web of alliances and betrayals that ultimately led to one of the most devastating conflicts in human history.
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BARGAIN T-Force Vulcan 16GB (2 x 8GB) PC RAM DDR5 5200 Memory READ
BARGAIN T-Force Vulcan 16GB (2 x 8GB) PC RAM DDR5 5200 Memory READ
Price : 39.99
Ends on : N/A
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If you’re in the market for high-quality RAM at a bargain price, look no further than the T-Force Vulcan 16GB DDR5 5200 Memory. This kit includes two 8GB RAM sticks, providing you with plenty of memory for all your gaming and multitasking needs.Not only does this RAM kit offer impressive performance, but it also comes at an unbeatable price. With DDR5 technology, you can expect faster speeds and improved efficiency compared to DDR4 memory.
Upgrade your PC’s performance without breaking the bank with the T-Force Vulcan 16GB DDR5 5200 Memory. Don’t miss out on this incredible deal!
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