Jeff Bezos Next Trillion Dollar Bet (Shocking)
Sponsored
If you've followed Jeff Bezos you know he's made a career out of spotting breakthrough technology long before his competitors… Whether it was the internet in 1994… Cloud computing in 2006… Or Alexa and A.I. in 2014… Bezos made himself the richest man in the world by looking around corners and spotting trends years ahead of everyone else… And on December 31st, 2021, Bezos has done it again… He's gone all in on the biggest tech breakthrough in history… And before you start guessing, this has nothing to do with A.I. or ChatGPT… Instead, it has to do with a technology Bank of America called, “Bigger than fire and bigger than all the revolutions that humanity has seen.” And this technology is going to change everything… 99% of Americans have no idea of what's about to happen… But I've put together a full presentation to explain what's going on… Go here now to see the full details.
By Rich Smith, The Motley Fool
Taiwan Semiconductor Manufacturing (TSM) stock was up 2.1% through 2 p.m. ET Tuesday. As hometown daily paper DigiTimes reported this morning, Intel has tapped TSMC to manufacture its new line of 3nm semiconductor chips for notebook computers.
What's more, production of the chips is already commencing.
What it means for Intel… and for TSMC
This sounds like good news for Intel… and for TSMC. In a related story from May, DigiTimes noted that TSMC had already hit a 95% “utilization rate” for 3nm chip production, meaning that production capacity was just about maxed out. Intel may have been just in time to secure its contract to supply the 3nm chips it has designed.
The news should be even better for TSMC, however. If production capacity was at 95% a month ago, then signing up a big customer like Intel has probably pushed that utilization rate up very close to 100% by now. This in turn implies that TSMC is getting all its money's worth out of the manufacturing equipment it has installed, and is probably working at very high efficiency — implying strong profit margins.
More than that, though, with demand for its 3nm chips so high, you have to assume that TSMC has strong pricing power for its services, implying even stronger profit margins.
*****************
CEO Says This Is Worth 9 Amazons
What in the world could be worth 9 Amazons?
The answer is a radical breakthrough that Wired says is “the rocket fuel of AI.”
******************
Is TSMC stock a buy?
Indeed, yet another DigiTimes story from just this past weekend seems to confirm that this is what's happening, and that semiconductor chip customers “are bracing for TSMC forthcoming price increases.”
Data from S&P Global Market Intelligence show that TSMC endured three straight quarters of falling gross profit margins starting at the end of 2022, but margins have more or less stabilized over the last three quarters. Now, they're likely headed back up.
At 28.5 times trailing earnings, I wouldn't call TSMC a “cheap stock” exactly. But long-term estimates show earnings growing at nearly 21% per year. With even faster growth rates projected this year and next, now might be a good time to buy TSMC stock.
Tiny $6 AI Stock Primed to Skyrocket
Sponsored
During his time as a Vice President for a major Wall Street bank… Ross Givens exploited his privileged position to help make his clients filthy rich. That was his job. Today, he's re-deploying this knowledge to help the ordinary Joe unlock the most explosive moneymaking opportunity in America. It centers on an extraordinary “$6 AI Wonder Stock”… This single stock gives you the opportunity to “lock in” the retirement of your dreams… Who knows? Perhaps even set you up for millionaire status. It will blow your mind. You can get the full details here in his new video.
But hurry… Things are moving super-fast. The longer you wait, the more returns you could be giving up… Go here ASAP to find out more about this “$6 AI Wonder Stock”.
