Chicago, IL – January 24, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include, Taiwan Semiconductor Manufacturing Company Ltd. TSM, Broadcom Inc. AVGO, Marvell Technology, Inc. MRVL and Apple Inc. AAPL.
Taiwan Semiconductor Manufacturing Company Ltd., better known as TSMC, saw its shares scale northward after posting record fourth-quarter net income, which topped analysts’ projections. The foundry behemoths’ fourth-quarter net profit soared 57% to $374.68 billion from a year earlier, driven by a surge in demand for artificial intelligence (AI) chipsets.
But it’s not the latest quarterly result that propelled its shares higher. The TSMC stock has already gained 91% in the past year with the advent of AI. However, can the TSMC stock sustain this growth and remain a good buy? Let’s see –
While the current quarterly results have boosted the TSMC stock, the long-term growth trajectory depends on the long-term growth prospects. TSMC’s first-quarter revenue guidance of $25 billion to $25.8 billion is 6% higher than expectations, suggesting strong near-term growth. Also, management expects a 20% revenue CAGR over the next five-year period, driven by growth opportunities in AI, 5G smartphones, and high-performance computing.
The rising demand for TSMC’s custom AI chips from Broadcom Inc. and Marvell Technology, Inc. has strengthened its future growth. Meanwhile, Apple Inc. has witnessed a rise in demand for its smartphones that require TSMC’s chips, a positive development for the latter. TSMC’s bright future is also due to the forthcoming launch of their highly efficient 2-nanometer (nm) chips this year, with pre-order demand exceeding 3 and 5nm.
TSMC’s dominant position in the global foundry market means the stock is well-poised to take advantage of the growing opportunities. After all, the semiconductor market worldwide is projected to generate $1.47 trillion in revenues in 2030 from $729 billion in 2022, per SNS Insider. Management mentioned that the U.S. government’s curb on chip sales to China is “manageable.”
Second, the new Stargate AI infrastructure program is expected to be a game changer for the TSMC stock. President Trump intends to allocate $500 billion for AI infrastructure, boosting AI stocks. TSMC stands to benefit as its advanced chips are essential for operating AI data centers.
The Zacks Analyst Blog: Taiwan Semiconductor Manufacturing, Broadcom, Marvell Technology and Apple
In this edition of The Zacks Analyst Blog, we will be taking a closer look at some of the top semiconductor companies in the industry, including Taiwan Semiconductor Manufacturing, Broadcom, Marvell Technology, and Apple.
Taiwan Semiconductor Manufacturing Company (TSMC) is the world’s largest dedicated independent semiconductor foundry, with a market capitalization of over $500 billion. TSMC is a key supplier for companies like Apple, NVIDIA, AMD, and Qualcomm, producing advanced chips for smartphones, PCs, and data centers. The company has been at the forefront of technological innovation, developing cutting-edge processes like 5nm and 3nm for its clients.
Broadcom Inc. is a global technology leader that designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions. Broadcom’s products are used in a wide variety of applications, including networking, storage, and wireless communication. The company has a market capitalization of over $200 billion and a strong track record of revenue growth and profitability.
Marvell Technology Group is a leading provider of semiconductor solutions for data infrastructure, including storage, networking, and connectivity. Marvell’s products are used in a wide range of applications, from cloud data centers to automotive and industrial markets. The company has a market capitalization of over $50 billion and has been growing its revenue and earnings at a rapid pace.
Apple Inc. is one of the most valuable companies in the world, with a market capitalization of over $2 trillion. While Apple is primarily known for its consumer electronics products like the iPhone, iPad, and Mac, the company also designs and manufactures its own custom chips, including the A-series processors used in its devices. Apple has been investing heavily in semiconductor technology, including the recent announcement of its plans to build its own silicon for its Mac computers.
Overall, these companies are at the forefront of semiconductor innovation and are well-positioned to benefit from the growing demand for advanced chips in a wide range of applications. Investors looking for exposure to the semiconductor industry should consider adding these companies to their portfolios.
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- Broadcom
- Marvell Technology
- Apple
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