Taiwan Semiconductor (#TAIWANSM)

Taiwan Semiconductor (#TAIWANSM) Weekly Special Report based on 1.00 Lot Calculation:

CHIP INDUSTRY

• MARKET POTENTIAL: The global semiconductor market was valued at $520 billion in 2023 and is expected to reach a value of $1.0 to 1.3 trillion by 2030. This is an increase of around 92% to 150% in total, with an average annual growth rate of approximately 8.9% to 11.9%.
• TAIWAN MARKET SHARE (2024): According to Statista.com, Taiwan Semiconductor market share was 61.7% in 2024, followed by Samsung (11%).

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 revenues, about 10% are contributed by Nvidia, 25% by Apple, 6.5% by Broadcom, 6.5% by Qualcomm, 5.5% by AMD. In other words, more than 50% of Taiwan Semiconductor´s sales come from large and well-known customers (Apple, Nvidia, Broadcom, AMD and Qualcomm).

TAIWAN SEMICONDUCTOR: NEWS AND EVENTS

• EVENT (THURSDAY, JANUARY 16, PREMARKET): Q4 EARNINGS REPORT. Taiwan Semiconductor is expected to print $26.33 billion in revenue for Q4 of 2024. This is an increase of 34% from the same period last year ($19.62 billion). In addition, the company is expected to post Earnings Per Share (EPS) of $2.18, which would be an increase of 51% from the same period last year ($1.44).
• COMPANY EARNINGS PERFORMANCE (LAST 6 QUARTERS): According to Bloomberg, Taiwan Semiconductor has beaten earnings expectations 5 times over the past 6 quarters, and beaten revenue expectations 5 times over the past 6 quarters.
• LAST TIME (Q3 EARNINGS RELEASED ON OCTOBER 17, 2024): Taiwan Semiconductor beat revenue estimates of 23.345 billion dollars printing a figure of 23.52 billion dollars for Q3 of 2024. Meanwhile, the company printed Net Income of $10.07 billion, beating analysts’ estimates for $9.29 billion. STOCK PERFORMANCE ON OCTOBER 17, 2024: The stock rose 13.48% to hit a session high of $212.14, up from its open price of $186.94.

Please note that past performance does not guarantee future performance.

• DONALD TRUMP ANNOUNCES $20 BILLION FOREIGN INVESTMENTS TO BUILD NEW U.S. DATA CENTERS. President-elect Donald Trump announced a $20 billion foreign investment to build new data centers in the United States. Emirati billionaire Hussain Sajwani, a Trump associate and founder of the property development company DAMAC Properties, is pledging the money, Trump said.

STOCK PRICE ACTION:

• STOCK PRICE ACTION: Taiwan Semiconductor stock hit an all-time high of $222.20 on January 6, 2025. The current price stands at $207. If the Sequehanna forecast ($265) is realized, this would provide an upside potential of around 28%. However, it could also decline.
• ANALYST OPINION: Sequehanna forecasts $265. Goldman Sachs forecasts $254. HSBC forecasts $250.

#TAIWANSM, January 9, 2025
Current Price: 207

Example of calculation based on weekly trend direction for 1 Lot¹

1. 1.00 lot is equivalent of 1000 units
2. Calculations for exchange rate used as of 11:45 (GMT) 09/01/2025

There is a possibility to use Stop-Loss and Take-Profit

• You may wish to consider closing your position in profit, even if it is lower than suggested one.
• Trailing stop technique could protect the profit.