TSMC and Samsung Remain Optimistic About AI Growth Amid Market Volatility

Taiwan Semi's Supplier Dismisses Selloff, Projects Strong AI Growth Surge - Taiwan Semiconductor (NYSE:TSM)

CEO Ming-Chi anticipates 2-3x yearly growth in equipment sales for AI semiconductors. Taiwan Semiconductor Manufacturing Co TSM supplier chief expressed conviction over artificial intelligence's potential to trigger the semiconductor industry's growth trajectory. Scientech Corp CEO Hsu Ming-Chi expects sequential quarterly sales growth in the second half of 2024, backed by the demand surge for AI applications it makes for Taiwan Semiconductor to produce AI chips for Nvidia Corp NVDA, Bloomberg Television cites an interview. In a way, Ming-Chi snubbed the current chip sector selloff led by Nvidia, which lost over 17% in the last five days. Advanced Micro Devices, Inc AMD and Taiwan Semiconductor lost 6% during the period. Nvidia's second-quarter print failed to impress the Street, triggering selloffs. Ming-Chi hailed it as the beginning of the AI frenzy, citing a two -- to three-fold annual growth in its equipment sales to Taiwan Semiconductor. He expects AI semiconductors to beat the global chip market growth of 8% in the last two decades. Taiwan Semiconductor Co-COO Y.J. Mii made similar claims at the Semicon Taiwan industry forum in Taipei this Wednesday, projecting a 50% compound growth rate for AI accelerator. Samsung Electronics' memory chip business President, Lee Jung-Bae, backed Mii's projection at the event. Recent reports claimed Taiwan Semiconductor and its partners are fast-tracking silicon photonics for AI, targeting a $500 million market by 2028. Apple Inc AAPL supplier Hon Hai Precision Industry Co, also known as Foxconn reported a 33% month-over-month topline growth in August 2024, bearing testimony to the continued AI frenzy. The results reflect a recovery from a smartphone slump, backed by demand for AI servers containing Nvidia's AI accelerators, Bloomberg reports. Taiwan Semiconductor stock has risen over 70% in the last 12 months. Investors can gain exposure to the stock through the SPDR S&P Emerging Asia Pacific ETF GMF and the ProShares Nanotechnology ETF TINY. Price Action: TSM stock is trading higher by 1.63% at $163.50 at the last check on Thursday. Photo by Jack Hong via Shutterstock Market News and Data brought to you by Benzinga APIs

Taiwan Semiconductor Bets on AI Growth Surge, Samsung Joins AI Optimism In Trade Show - Taiwan Semiconductor (NYSE:TSM)

Taiwan Semiconductor forecasts a 50% AI accelerator growth, while Samsung echoes optimism on AI's impact on their chip business. Taiwan Semiconductor Manufacturing Co TSM and Samsung Electronics SSNLF senior officials expressed their conviction on artificial intelligence prospects at the Semicon Taiwan industry forum in Taipei on Wednesday, as per Reuters. In July, Samsung reported its highest operating profit since the third quarter of 2022, driven by its chip division. According to analysts, Taiwan Semiconductor raised its full-year revenue forecast backed by AI frenzy and seasonal smartphone demand for both 3nm and 5nm. It is a key supplier to Nvidia Corp NVDA and Apple Inc AAPL. Taiwan Semiconductor Co-COO Y.J. Mii told Reuters that AI remained a major growth driver, projecting a 50% compound growth rate for AI accelerator for the next couple of years despite taking a toll on global jobs. Samsung Electronics' memory chip business President, Lee Jung-Bae, voiced a similar opinion about AI. Taiwan Semiconductor led the global foundry market, commanding a 62% share in the second quarter of 2024, followed by Samsung Electronics, which had a 3% share. Taiwan Semiconductor stock gained 70% in the last 12 months. Investors can gain exposure to the stock through First Trust NASDAQ Technology Dividend Index Fund TDIV and iShares Semiconductor ETF SOXX. Taiwan Semiconductor Stock Prediction For 2024 Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock. Shares of Taiwan Semiconductor have an average 1-year price target of $224.29, representing an expected upside of 37.62%. Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on Taiwan Semiconductor, while 7 analysts have bullish ratings. The street high price target from Susquehanna is $250.0, while the street low from Bernstein is $200.0. Price Action: TSM stock traded higher by 1.16% at $162.38 at the last check on Wednesday. Photo courtesy: Shutterstock Market News and Data brought to you by Benzinga APIs

Stocks sink but TSMC, Samsung bullish on AI at major trade show

TAIPEI (Reuters) - Senior executives from two of the world's most important chipmakers, Taiwan's TSMC and South Korea's Samsung Electronics, offered bullish outlooks for artificial intelligence at a major trade show on Wednesday even as their stocks tanked on a fevered day on the markets. TSMC, the world's largest contract chipmaker, dropped as much as 5.5% while Samsung Electronics, the world's biggest maker of memory chips, closed down 3.5%. The losses came after global AI darling Nvidia was sold heavily overnight as investors reined in their optimism about the AI sector, as well as U.S. economic growth. Speaking to the Semicon Taiwan industry forum in Taipei, Y.J. Mii, TSMC Executive Vice President and Co-Chief Operating Officer, said AI remained a major growth driver even if it would cause many jobs globally to change or disappear. "I think in general we believe AI is a huge opportunity for all of us in this industry," he said. "We think there is good opportunity for growth. From an AI accelerator point of view probably for the next couple of years at least a 50% compound growth rate is achievable. As for longer term, we can wait to see how it goes." Sitting next to him on stage, Lee Jung-Bae, president of Samsung Electronics' memory chip business, said things were only getting started with AI and it was natural to have bumps on the road. "For the AI, I really think that we are at the beginning and there might be some ups and downs and there might be some chasms, but quite steady in the longer term," he said. "I believe, as far as the AI helps human beings I think it's going to be a new revolution for changing our everyday lives," he added. "I am cautiously optimistic for AI." In July, Samsung reported its highest operating profit since the third quarter of 2022, spurred by the chip division returning to form as the tech giant's cash cow after a slump caused by weak post-pandemic demand for gadgets that use the chips. The same month, TSMC raised its full-year revenue forecast given surging demand for AI chips. (Reporting by Ben Blanchard and Heekyong Yang; Editing by Christina Fincher)

Stocks sink but TSMC, Samsung bullish on AI at major trade show

The losses came after global AI darling Nvidia was sold heavily overnight as investors reined in their optimism about the AI sector, as well as U.S. economic growth. Speaking to the Semicon Taiwan industry forum in Taipei, Y.J. Mii, TSMC Executive Vice President and Co-Chief Operating Officer, said AI remained a major growth driver even if it would cause many jobs globally to change or disappear. "I think in general we believe AI is a huge opportunity for all of us in this industry," he said. "We think there is good opportunity for growth. From an AI accelerator point of view probably for the next couple of years at least a 50% compound growth rate is achievable. As for longer term, we can wait to see how it goes." Sitting next to him on stage, Lee Jung-Bae, president of Samsung Electronics' memory chip business, said things were only getting started with AI and it was natural to have bumps on the road. "For the AI, I really think that we are at the beginning and there might be some ups and downs and there might be some chasms, but quite steady in the longer term," he said. "I believe, as far as the AI helps human beings I think it's going to be a new revolution for changing our everyday lives," he added. "I am cautiously optimistic for AI." In July, Samsung reported its highest operating profit since the third quarter of 2022, spurred by the chip division returning to form as the tech giant's cash cow after a slump caused by weak post-pandemic demand for gadgets that use the chips. The same month, TSMC raised its full-year revenue forecast given surging demand for AI chips. (Reporting by Ben Blanchard and Heekyong Yang; Editing by Christina Fincher)

Stocks sink but TSMC, Samsung bullish on AI at major trade show

TSMC, the world's largest contract chipmaker, dropped as much as 5.5% while Samsung Electronics, the world's biggest maker of memory chips, closed down 3.5%. The losses came after global AI darling Nvidia was sold heavily overnight as investors reined in their optimism about the AI sector, as well as US economic growth.Senior executives from two of the world's most important chipmakers, Taiwan's TSMC and South Korea's Samsung Electronics, offered bullish outlooks for artificial intelligence at a major trade show on Wednesday even as their stocks tanked on a fevered day on the markets. TSMC, the world's largest contract chipmaker, dropped as much as 5.5% while Samsung Electronics, the world's biggest maker of memory chips, closed down 3.5%. The losses came after global AI darling Nvidia was sold heavily overnight as investors reined in their optimism about the AI sector, as well as US economic growth. Speaking to the Semicon Taiwan industry forum in Taipei, Y.J. Mii, TSMC Executive Vice President and Co-Chief Operating Officer, said AI remained a major growth driver even if it would cause many jobs globally to change or disappear. "I think in general we believe AI is a huge opportunity for all of us in this industry," he said. "We think there is good opportunity for growth. From an AI accelerator point of view probably for the next couple of years at least a 50% compound growth rate is achievable. As for longer term, we can wait to see how it goes." Sitting next to him on stage, Lee Jung-Bae, president of Samsung Electronics' memory chip business, said things were only getting started with AI and it was natural to have bumps on the road. "For the AI, I really think that we are at the beginning and there might be some ups and downs and there might be some chasms, but quite steady in the longer term," he said. "I believe, as far as the AI helps human beings I think it's going to be a new revolution for changing our everyday lives," he added. "I am cautiously optimistic for AI." In July, Samsung reported its highest operating profit since the third quarter of 2022, spurred by the chip division returning to form as the tech giant's cash cow after a slump caused by weak post-pandemic demand for gadgets that use the chips. The same month, TSMC raised its full-year revenue forecast given surging demand for AI chips.