The Zacks Analyst Blog Taiwan Semiconductor Manufacturing, Broadcom, Marvell Technology and Apple

For Immediate ReleasesChicago, 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.Here are highlights from Friday’s Analyst Blog:3 Reasons to Buy TSMC Stock Beyond Record Q4 Net Profit 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 –3 Reasons to Be Bullish on TSMC StockWhile 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.Third, the TSMC stock is likely to rise because the company generates profits efficiently, with a net profit margin of 40.52%, slightly more than the Semiconductor - Circuit Foundry industry’s 40.51%, indicating a high margin.Consider Buying TSMC StockWith the TSMC stock poised to gain in the long term due to multiple growth opportunities, a new Stargate AI infrastructure project, and strong fundamentals, it is judicious for investors to place their bets on the stock now. Brokers also expect the TSMC stock to rise and have raised its average short-term price target by 7.5% to $235.13 from the previous $218.70. The highest short-term price target is $265, indicating an upside of 21.2%.Additionally, TSMC’s earnings per share are estimated to increase by 21% from last year. The Zacks Consensus Estimate is $9.12. TSMC, therefore, rightfully has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                     https://www.zacks.com                                                Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Marvell Technology, Inc. (MRVL): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. 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