Sign up to save your podcasts
Or
Share Taiwan Semi's Upbeat Forecast Boosts Chip Stocks
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
Taiwan Semi's Upbeat Forecast Boosts Chip Stocks
Taiwan Semiconductor $TSM, the world's largest chipmaking foundry, today just issued the largest CapEx forecast of its company's history.Does this mean the chip industry is finally escaping from its cyclical lows, and is ready for a rebound in 2025?
TSMC's 4Q 2024 results showcased a 38% year-over-year increase in revenue and a 57% increase in earnings.
Those were good numbers. But there might be even better news on the horizon.
Management just approved a 2025 capital budget of between $38 billion and $42 billion. 70% of that is dedicated to "advanced technology production" -- i.e. building new fabs to manufacture the cutting-edge chips demanded by AI.
This aggressive CapEx forecast is good news for TSMC and also for the entire semiconductor industry. The company will be spending that 2025 budget on equipment vendors such as $ASML, Applied Materials $AMAT, and Axcelis Technologies $ACLS and also on boatload of supporting functions.
Meanwhile, creative innovations are also unlocking new opportunities. Taiwan Semi is transitioning the fundamental architecture of its transistors from FinFET to gate-all-around.
It's updating the foundation its entire house is built on; changing the physical design of the smallest building blocks of its circuits to support more efficient and powerful processors.
The next few years will be an exciting time for this industry. The semiconductor renaissance looks well-primed to begin a new chapter.
See all of our @7investing coverage on $TSMC -- including our current Conviction Rating on the stock -- at:https://7investing.com/company_name/taiwan-semiconductor-manufacturing-company/
View all episodes
By 7investing
4.1
8787 ratings
Taiwan Semiconductor $TSM, the world's largest chipmaking foundry, today just issued the largest CapEx forecast of its company's history.Does this mean the chip industry is finally escaping from its cyclical lows, and is ready for a rebound in 2025?
TSMC's 4Q 2024 results showcased a 38% year-over-year increase in revenue and a 57% increase in earnings.
Those were good numbers. But there might be even better news on the horizon.
Management just approved a 2025 capital budget of between $38 billion and $42 billion. 70% of that is dedicated to "advanced technology production" -- i.e. building new fabs to manufacture the cutting-edge chips demanded by AI.
This aggressive CapEx forecast is good news for TSMC and also for the entire semiconductor industry. The company will be spending that 2025 budget on equipment vendors such as $ASML, Applied Materials $AMAT, and Axcelis Technologies $ACLS and also on boatload of supporting functions.
Meanwhile, creative innovations are also unlocking new opportunities. Taiwan Semi is transitioning the fundamental architecture of its transistors from FinFET to gate-all-around.
It's updating the foundation its entire house is built on; changing the physical design of the smallest building blocks of its circuits to support more efficient and powerful processors.
The next few years will be an exciting time for this industry. The semiconductor renaissance looks well-primed to begin a new chapter.
See all of our @7investing coverage on $TSMC -- including our current Conviction Rating on the stock -- at:https://7investing.com/company_name/taiwan-semiconductor-manufacturing-company/
More shows like The 7investing Podcast
View all
Motley Fool Money
3,195 Listeners
We Study Billionaires - The Investor’s Podcast Network
3,369 Listeners
Rule Breaker Investing
939 Listeners
FYI - For Your Innovation
394 Listeners
Animal Spirits Podcast
2,000 Listeners
Stock Club
88 Listeners
Chit Chat Stocks
188 Listeners
The Acquirers Podcast
306 Listeners
Investing With IBD
384 Listeners
The Compound and Friends
2,058 Listeners
The Intrinsic Value Podcast - The Investor’s Podcast Network
563 Listeners
Barron's Streetwise
1,546 Listeners
Barron's Live
195 Listeners
Business Breakdowns
353 Listeners
BG2Pod with Brad Gerstner and Bill Gurley
469 Listeners