Are you looking to make smart investment decisions in the semiconductor industry? Well, we have some exclusive insights for you here at Extreme Investor Network.
One of the key players in the semiconductor sector, Taiwan Semiconductor (TSMC), has caught the attention of analysts at Morgan Stanley. They believe that TSMC could see a significant boost in its share price based on the outlook provided by chip giant Nvidia. As the sole supplier for Nvidia’s AI GPU, TSMC stands to benefit from Nvidia’s strong revenue guidance.
Nvidia is set to report its results after the market closes on Wednesday, and investors are eagerly awaiting their July revenue guidance. This guidance is considered a crucial indicator of AI server demand, with Morgan Stanley estimating revenues to reach $26 billion in the current quarter. With AI enthusiasm on the rise and more AI graphics processing units expected from Nvidia utilizing TSMC’s capacity, the outlook for TSMC looks promising.
Morgan Stanley has outlined three potential scenarios based on Nvidia’s guidance. If Nvidia meets expectations with revenue between $26 billion and $28 billion, Taiwan Semiconductor could see a 1% uptick in its share price. A beat on guidance could lead to a 3% advance, while falling short could result in a 2% drop.
With shares of Taiwan Semiconductor already up 47% this year, there is certainly excitement surrounding the company’s potential for growth. Stay tuned to Extreme Investor Network for more exclusive insights and analysis on the latest investment opportunities in the semiconductor industry. Make sure you’re ahead of the curve with our expert advice and unique perspectives. Happy investing!