β#TSMC #Nvidia #AIChipsπ Buffett was wrong: TSMC is poised for further growthβ
The world's leading chip maker is effectively capitalizing on market interest: the frenzied demand for artificial intelligence has led to a sharp increase in sales of TSMC products (over 40%), and the company's medium-term prospects are very optimistic.
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At the beginning of the year, the legendary Warren Buffett sold his $5 billion worth of TSMC shares, believing that geopolitical risks would make this investment unprofitable. However, time is running out, and the Taiwanese giant is moving steadily upward, so the "Oracle of Omaha" clearly missed the mark.
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TSMC is the base for the success of Wall Street giants like Apple (NASDAQ: AAPL ) and Nvidia (NASDAQ: NVDA ). Despite a lower market valuation than its customers, TSMC boasts skyrocketing sales and ambitious growth plans.
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TSMC recently crossed the coveted trillion-dollar market capitalization, and its latest sales figures confirm that this was no accident.
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In addition to speculative demand for AI chips, the company is buoyed by strategic partnership contracts with the U.S. in the trade war with China.
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In April, Biden announced that TSMC would be eligible for direct funding from the US Department of Commerce (approximately $6.6 billion). The chip lord will use the funds to build a third fab at its US site in Phoenix, Arizona, bringing the total investment in this industrial complex to over $65 billion.
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Shares of TSMC (NYSE: TSM ) have been rising since breaking above the $100 resistance. According to analysts, the current target price is above $190, which looks extremely positive and quite realistic.
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We are waiting for the company's following report on July 18. Make the correct conclusions, and do not miss the opportunity for a successful deal.
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Profits to yβall!