Taiwan Semiconductor (#TAIWANSM) Weekly Special Report based on 1.00 Lot Calculation:
CHIP INDUSTRY
- MARKET POTENTIAL: The global semiconductor market was valued at $466.32 billion in 2022 and is expected to reach a value of $908.92 billion by 2030. This is an increase of around 95% in total, or up to around 13.5% each year on average.
- TAIWAN MARKET SHARE (2023): According to Statista.com, Taiwan Semiconductor's market share was 61.2% in 2023. It was followed by Samsung (11.3%), GlobalFoundries (5.8%) etc.
TAIWAN SEMICONDUCTOR: THE COMPANY
- Taiwan Semiconductor is a global leader in semiconductor fabrication and makes the vast majority of the world’s leading-edge logic chips, used in emerging technologies such as artificial intelligence. Its focus on areas such as artificial intelligence and automotive technology positions the company as a strategic partner for innovative companies seeking cutting-edge solutions.
- DEPENDENCE OF LARGE TECHNOLOGY COMPANIES: Nvidia is one of Taiwan Semiconductor´s main customers. Of Taiwan Semiconductor's total revenue in 2023, about 10% was contributed by Nvidia, 25% by Apple, 10% by AMD and 9% by Qualcomm. In other words, 50% of Taiwan Semiconductor´s sales come from large and well-known customers (Apple, Nvidia, AMD and Qualcomm).
TAIWAN SEMICONDUCTOR: NEWS AND EVENTS
- EVENT (THURSDAY, APRIL 18, PREMARKET): Q1 EARNINGS REPORT. Taiwan Semiconductor is expected to print $18.18 billion in revenue for Q1 of 2024. This is an increase of 8.7% from the same period last year ($16.73 billion). In addition, the company is expected to post a net income of $6.66 billion.
- COMPANY EARNINGS PERFORMANCE: According to Bloomberg, Taiwan Semiconductor has beat earnings expectations 6 times over the past 6 quarters, and beat revenue expectations 3 times over the past 6 quarters.
- TAIWAN SEMICONDUCTOR STOCK PRICE RISES 6.38% AFTER EARNINGS ON AVERAGE. According to the table below, Taiwan Semiconductor stock on average rose 6.38% after earnings. The average is calculated for the period of the last six quarters, during which period the Artificial Intelligence remained in the spotlight.
Data Source: Bloomberg
Please note that past performance does not guarantee future performance.
- U.S OFFERS AID PACKAGE OF $6.6 BILLION (April 8): Biden administration announces $6.6 billion aid package for Taiwan Semiconductor as pushes for chip security. Taiwan Semiconductor’s new factory in Arizona is estimated to cost $40B. This funding will support Taiwan Semiconductor’s investment of more than $65 billion in three manufacturing plants in Phoenix.
STOCK PRICE ACTION:
- STOCK PRICE ACTION: Taiwan Semiconductor stock hit an all-time high of $158.40 on March 8, 2024. The current price stands at $146. If the Goldman Sachs forecast is realized this would provide an upside potential of around 29%. However, the price could decline.
- ANALYST OPINION: Goldman Sachs forecasts $188. HSBC forecasts $164.
Taiwan Semiconductor, April 11, 2024
Current Price: 146.00
|
TSM |
Weekly |
|
Trend direction |
|
|
200.00 |
|
|
180.00 |
|
|
160.00 |
|
|
135.00 |
|
|
132.00 |
|
|
130.00 |
Example of calculation based on weekly trend direction for 1.00 Lot1
|
|
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|
Pivot Points |
||||||
|
Profit or loss in $ |
54,000.00 |
34,000.00 |
14,000.00 |
-11,000.00 |
-14,000.00 |
-16,000.00 |
|
Profit or loss in €² |
50,209.44 |
31,613.35 |
13,017.26 |
-10,227.85 |
-13,017.26 |
-14,876.87 |
|
Profit or loss in £² |
42,959.26 |
27,048.42 |
11,137.58 |
-8,750.96 |
-11,137.58 |
-12,728.67 |
|
Profit or loss in C$² |
73,678.41 |
46,390.11 |
19,101.81 |
-15,008.57 |
-19,101.81 |
-21,830.64 |
- 1.00 lot is equivalent of 1000 units
- Calculations for exchange rate used as of 10:00 (GMT+1) 11/04/2024
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