Veteran investor connects with Taiwan Semiconductor after sales

This has nothing to do with the automobile.

Duesenberg Automobile & Motors Co. changed into an American racing and luxury car manufacturer founded in Indianapolis in 1920.

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The company is assumed for popularizing the straight-eight engine and 4-wheel hydraulic brakes, and Duesenberg made the first American car to win a Grand Prix race.

People would often consult with a Duesenberg vehicle as "a doozy," alternatively the automobile's nickname is now now not related to the word that means  "extra special," "outstanding" or "thought about one of a sort."

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That doozy had staked its place all of the way through the vernacular years before the Duesenbergs hit the road.

And it truly is that this definition that TheStreet Pro's Chris Versace employed in his recent column, "TSM’s Quarterly Sales Bonanza Boosts Outlook for Several Portfolio Stocks."

"September sales from Taiwan Semiconductor landed this morning, and, boy, changed into the report a doozy," he said.

TSCM shares surged from last year

"Sales for the month rose just shy of forty% year over year, bringing the company’s September-ending quarter sales up a staggering 39% year over year and up just over 6% compared with the previous quarter," Versace added.

TSM produces high-end semiconductors for such tech superstars as Nvidia, Apple, Improved Micro Devices (AMD) and Marvell.

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While the company does now now not offer any end-market color in these monthly revenue reports, Versace said, judging by recent comments from Nvidia (NVDA) CEO Jensen Huang pointing to AI chip demand being “insane” and Hon Hai Chairman Young Liu that demand is “crazy,” “we can deduce TSM’s High-Performance Computing segment revenue changed into robust.“

The HPC segment is many of the most important because it houses TSM's synthetic-intelligence and data-center chip revenue, and Versace says the present quarter is shaping up very nicely, now now not handiest for Nvidia but for Marvell (MRVL) along with.

Versace wrote about Hon Hai in an earlier column, saying the company's September revenue rose almost 34% sequentially and greater than 10% from a year earlier.

"The company shared that it saw strong demand for AI servers continuing, which pushed its Cloud and Networking Products segment ahead while new product launches for its Smart Consumer Electronics segment ended in strong sequential growth," he said.

Taiwan Semiconductor (TSM) shares are up nearly seventy 9% year-to-date and have greater than doubled (up 109%) from a year ago.

The research firm TrendForce estimated that the company's share of global foundry revenue this year will probably be about sixty four%, up from fifty one% in 2019, The Wall Boulevard Journal reported.

MediaTek, the arena's top smartphone-chip developer by shipments said on Oct. 9 that its new 5G mobile chipset, the Dimensity 9400, is made with Taiwan Semi’s most modern generation three-nanometer process technology, which Apple (AAPL) uses for its AI-capable iPhone Sixteen series, based on Nikkei Asia.

The chip sector has been posting some impressive numbers today.

Global semiconductor sales hit $53.1 billion in August, the Semiconductor Industry Association said, up 20.6% from a year earlier and three.5% higher from July.

“The worldwide semiconductor market continued to grow substantially in August, hitting its best possible-ever sales total for the month of August, and month-to-month sales increased for the fifth consecutive month,” John Neuffer, SIA president and CEO, said in an announcement.

TheStreet Pro waiting for TSCM earnings report

“Year-to-year sales increased by the largest percentage since April 2022, driven by a forty three.9% year-to-year sales extend into the Americas, and month-to-month sales were up across all regions for the first time since October 2023," he said.

Versace said the following potential catalyst for Nvidia and Marvell shares may possibly be AMD's “Advancing AI” event, which kicked off on Oct. 10.

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"We’ll be trying to find comments from [AMD] CEO Lisa Su that back the colour comments from Nvidia’s Jensen and Hon Hai’s Liu," he said. "If Su’s comments don’t match that degree of enthusiasm, it might probably solidify the view that Nvidia is that a reasonably good buy in an identical fashion ahead than AMD."

Su gave the keynote address at the event, based on IT Pro, and said that AMD is "the reality is committed" to driving open innovation in high performance computing and AI infrastructure.

"When TSM reports its quarterly results next week, we’ll get more color on its end-market breakdown, including how strong HPC changed into over the three months compared with year-ago levels," Versace said. "Which could provide us reason to revisit our NVDA price target, which currently sits at $100 and fifty five."

The quarterly deep dive also will provide color on the smartphone market, he added. It can possibly be TSMC’s 2d largest market at the back of high-performance computing.

"That, together with its conference-call comments about the smartphone and PC markets, stands out as the following known catalyst for our shares of Qualcomm (QCOM) , Universal Display (OLED) , and Apple," Versace said.

With this report in hand, he added "we reiterate our One ratings on NVDA, MRVL, QCOM and OLED shares."

"We continue to think the phased rollout of Apple Intelligence will trigger off a long iPhone upgrade cycle, keeping us bullish on AAPL shares over the medium to long run," Versace said.

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