TSMC is thriving in the AI boom! Check out the leading stocks in the USA and Japan from its major customers and suppliers!
$Taiwan Semiconductor (TSM.US)$ofThe performance is favorable.On July 10, the revenue for June, which was announced, increased by 32.9% compared to the same month of the previous year, setting a new record for the same month.For the period from April to June, the revenue increased by 40% compared to the same period of the previous year, significantly exceeding the market's forecasted growth of 35.5%.The strength of TSMC, the world's largest foundry (semiconductor contract manufacturer), suggests that the boom in AI investment continues.TSMC's revenue is announced before the earnings report, making it a leading indicator of performance not only for TSMC itself, but also for related companies.Said.
From the perspective of the supply chain,Exceeding TSMC's financial estimates could indicate the following two points:。
1) Strong business from major customers ordering from TSMC
2) Not only TSMC, but also its major suppliers are performing well.
1) Strong business from major customers ordering from TSMC
2) Not only TSMC, but also its major suppliers are performing well.
So this time,We will check the leading stocks in the U.S. and Japan from TSMC's customers and suppliers.We will also confirm the recent trends of each company.Along with the expected performance and potential upside of their stock prices.In addition, high-tech stocks such as TSMC are being pushed by profit-taking sales at the moment. In addition to the sense of caution about high prices, the rotation from high-tech stocks is also having an impact. The U.S. CPI slowed more than expected, leading to increased speculation about interest rate cuts in September. This resulted in active movements of selling high-tech stocks and buying underperforming stocks in the U.S. stock market on July 11th. This kind of rotation may continue for a while, but ...The size of the benefit from the profit growth rate and the AI boomOn that note,Investing in high-tech stocks is more appealing in the medium to long termIt is considered.
On July 10th, TSMC recorded revenuefrom JuneIt was announced that it reached NT$207.9 billion (approximately 1 trillion 18 billion yen) in June. It was the highest level in the same month.It reached a record high.It happened.For the April-June (Q2) period, revenue increased by 40% compared to the same period last year.加(*)It significantly exceeded the market's expected increase of 35.5%.The 40% revenue growth rate is higher than the company's forecasted guidance of the mid-20% range.Suggests that the benefits of the AI investment boom are bigger than expected.Said.
(※Earnings announcement for the period from April to June is scheduled to be held on July 18).
Supported by a significant increase in revenue, it is expected that TSMC's profit growth will also accelerate.The adjusted earnings per share for the period from April to June are expected to increase by 30% compared to the same period of the previous year, and by 32% for the period from July to September (according to Bloomberg).After that, price increases are expected to contribute to improving profit margins.According to media reports, customers are willing to accept price increases related to TSMC's cutting-edge 3nm process that the company has presented. Based on this, TSMC is expected to enter into new medium- to long-term contracts with customers. The price increase demonstrates TSMC's strength in cutting-edge technology and is expected to contribute to the company's business expansion in the medium to long term.Stock priceThe semiconductor manufacturing equipment related to technologies like lasers is strong, with a psychological improvement due to the recovery of NVIDIA's stock in the U.S.The average target stock price comparison shows a 6% difference.Reflecting the recent trend.There is a 37% upside potential in comparison to the highest target stock price (*).is suggested.
(* The highest target stock price is the highest target stock price updated in the past month. Analysts tend to revise target stock prices based on relatively up-to-date company information.)
TSMC's major customers include Apple, NVIDIA, Taiwan's MediaTek, Broadcom, Qualcomm, AMD, and others.Apple is the largest customer.So, TSMC accounts for about 25% of the revenue.。NVIDIA accounts for 10%.、Broadcom, Qualcomm, and AMD each account for 6-7%.TSMC's strong revenue is believed to be supported by these major customers.
Here, we will check the performance outlook and potential upside of the five US-listed companies that account for over 5% of TSMC's revenue.
◆Although Apple's growth rate is in the single digits,the performance is expected to recover from the previous quarter.。
◆Despite the slowdown in iPhone sales and the delayed AI strategy, adjustments are being made.The company is reported to be aiming for a approximately 10% increase compared to the previous model for the next generation smart phone "iPhone 16". "The company is increasingly confident that the introduction of new AI services will stimulate demand for the new model." (Bloomberg report)
◆Stock pricehas already sharply rebounded since Juneexceeding the average target stock priceIndicating a 21% potential increase in comparison to the highest target stock price, reflecting the recent trendsis suggested.is suggested.
◆Despite the slowdown in iPhone sales and the delayed AI strategy, adjustments are being made.The company is reported to be aiming for a approximately 10% increase compared to the previous model for the next generation smart phone "iPhone 16". "The company is increasingly confident that the introduction of new AI services will stimulate demand for the new model." (Bloomberg report)
◆Stock pricehas already sharply rebounded since Juneexceeding the average target stock priceIndicating a 21% potential increase in comparison to the highest target stock price, reflecting the recent trendsis suggested.is suggested.
◆On a quarterly basis, it is expected to slow down from its rapid growth, but the growth rate is still high.It is still one of the top tech stocks in terms of growth rate.It is the leading player among the major tech stocks.
◆It has announced earnings that have exceeded market expectations for the past six consecutive quarters.Analysts have subsequently revised their target stock prices upwards, as it is currently the best-selling next-generation AI semiconductor, H100.Both H200 and the latest AI semiconductors Blackwell are experiencing strong demand.Both productsAs shipments begin (in the second half of the year), their contribution to performance will increase significantly.Is expected.
◆Stock prices continued to rise, temporarily surpassing the average target price, but with the current stock price adjustment and the increase in the target stock price by analysts,there is upside potential in the stock price.generated.On average, there is a 7% target stock price comparison.Reflecting the recent trend.There is a 57% potential for increase in the highest target stock price comparison.is suggested.
◆It has announced earnings that have exceeded market expectations for the past six consecutive quarters.Analysts have subsequently revised their target stock prices upwards, as it is currently the best-selling next-generation AI semiconductor, H100.Both H200 and the latest AI semiconductors Blackwell are experiencing strong demand.Both productsAs shipments begin (in the second half of the year), their contribution to performance will increase significantly.Is expected.
◆Stock prices continued to rise, temporarily surpassing the average target price, but with the current stock price adjustment and the increase in the target stock price by analysts,there is upside potential in the stock price.generated.On average, there is a 7% target stock price comparison.Reflecting the recent trend.There is a 57% potential for increase in the highest target stock price comparison.is suggested.
◆There is a forecast for continued stable high growth in revenue.。Earnings per shareAfter increasing in the current quarter,The outlook for accelerated growth。
◆Benefiting from the AI boom, it has two major businesses,Semiconductors and cloud servicesholding. In addition to Apple, major customers include alphabet and meta, which are developing custom semiconductors. nnvidia's major customers areWe are also creating custom AI semiconductors for hyperscalers.、Sales related to AI semiconductors have seen a rapid increase since last year.If sales of Apple's AI service-equipped iPhones are strong, it is expected that the traditional semiconductor business will also benefit.
◆Stock price Compared to the average target stock price, +13%、There is a 41% upside potential in comparison to the highest target stock price.is suggested.
◆Benefiting from the AI boom, it has two major businesses,Semiconductors and cloud servicesholding. In addition to Apple, major customers include alphabet and meta, which are developing custom semiconductors. nnvidia's major customers areWe are also creating custom AI semiconductors for hyperscalers.、Sales related to AI semiconductors have seen a rapid increase since last year.If sales of Apple's AI service-equipped iPhones are strong, it is expected that the traditional semiconductor business will also benefit.
◆Stock price Compared to the average target stock price, +13%、There is a 41% upside potential in comparison to the highest target stock price.is suggested.
◆Performance is expected to expand steadily.。
◆Smartphone manufacturers such as Apple and Samsung Electronics are major customers.The company strongly announced its focus on AI development by the end of 2023.、They have announced the launch of AI chips for smartphones and notebooks.Done. $Dell Technologies (DELL.US)$The AI computer they announced in May of this year uses Qualcomm chips. In the future,We can expect benefits from the popularization of AI smartphones and AI computers.。
◆Stock price 4% compared to the average target stock price.、with a potential increase of 35% compared to the highest target stock priceis suggested.
◆Smartphone manufacturers such as Apple and Samsung Electronics are major customers.The company strongly announced its focus on AI development by the end of 2023.、They have announced the launch of AI chips for smartphones and notebooks.Done. $Dell Technologies (DELL.US)$The AI computer they announced in May of this year uses Qualcomm chips. In the future,We can expect benefits from the popularization of AI smartphones and AI computers.。
◆Stock price 4% compared to the average target stock price.、with a potential increase of 35% compared to the highest target stock priceis suggested.
◆Performance is In the short term, there is a large fluctuation However,In the medium to long term, there is a prospect of recovery 。
◆In the AI semiconductor field, there is a strong image of NVIDIA's dominance, and AMD is launching new products while trailing behind NVIDIA. AI semiconductor revenue is already contributing to performance.However,Not as much as NVIDIA, but it is expected that the expansion of the AI semiconductor market will also benefit the company.The proliferation of AI computers may also push up future performance.
◆Stock price 4% compared to the average target stock price., the highestThere is a 21% upside potential compared to the target stock price.is suggested.
◆In the AI semiconductor field, there is a strong image of NVIDIA's dominance, and AMD is launching new products while trailing behind NVIDIA. AI semiconductor revenue is already contributing to performance.However,Not as much as NVIDIA, but it is expected that the expansion of the AI semiconductor market will also benefit the company.The proliferation of AI computers may also push up future performance.
◆Stock price 4% compared to the average target stock price., the highestThere is a 21% upside potential compared to the target stock price.is suggested.
TSMC's major suppliers include US companies such as ASML, Applied Materials, and Lam Research, as well as Japanese companies such as Tokyo Electron, AGC, Shin-Etsu Chemical, and SCREEN. These companies can be broadly divided into two groups: semiconductor manufacturing equipment companies and semiconductor material companies.
★ $ASML Holding (ASML.US)$
Percentage of TSMC's costsis seen.ASML, a major player in advanced lithography, has a market share of 40%, which is high.This is because ASML almost monopolizes the advanced lithography market and has a high unit price per product.From ASML's perspective, TSMC is a major customer.TSMC's contribution to ASML's revenue composition is also about 30%, which is high. Therefore,it is expected that ASML will benefit greatly from TSMC's business expansion.In fact, after TSMC announced its revenue in June, analysts raised ASML's target stock price.Stock price A 9% comparison to the average target stock price、There is a 22% upside potential compared to the highest target stock priceis suggested.
Percentage of TSMC's costsis seen.ASML, a major player in advanced lithography, has a market share of 40%, which is high.This is because ASML almost monopolizes the advanced lithography market and has a high unit price per product.From ASML's perspective, TSMC is a major customer.TSMC's contribution to ASML's revenue composition is also about 30%, which is high. Therefore,it is expected that ASML will benefit greatly from TSMC's business expansion.In fact, after TSMC announced its revenue in June, analysts raised ASML's target stock price.Stock price A 9% comparison to the average target stock price、There is a 22% upside potential compared to the highest target stock priceis suggested.
Next, stocks with relatively high sales ratios to TSMC $Applied Materials (AMAT.US)$Ya $Tokyo Electron (8035.JP)$、 $Lam Research (LRCX.US)$、 $KLA Corp (KLAC.US)$、 $Screen Holdings (7735.JP)$、 $Shin-Etsu Chemical (4063.JP)$There are various options.Not as much as ASML, but these companies are also expected to benefit from TSMC's business expansion.We decided to check the performance outlook and potential stock price increases of the above companies collectively.
U.S. semiconductor manufacturing equipment manufacturers.However,Growth rate of performanceFrom that perspective,The order is expected to be Lam Research, KLA, and Applied Materials.。Deviation ratio from the target stock price.However,There is not much difference between Lam Research and Applied Materials.in terms of deviation ratio from the highest target stock price,there is a potential for over 20% increase.is suggested.Japanese stocks performance outlookHowever,Tokyo Electron and SCREEN are expected to be relatively solid。potential for stock price increaseHowever,Both companies are suggesting.Larger than the USA semiconductor manufacturing equipment brand.It is suggested.。
Created on July 12, 2024, Market analyst Amelia.
Source: Created by moomoo Securities from Bloomberg
Source: Created by moomoo Securities from Bloomberg
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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