All right, welcome back to the Tech Corner. I'm George Tillis, and your market's contributor here with the Schwab Network. Today, we're going to be covering time on Summit Conductor.
In fact, this is the second time we've covered this stock. If you want to watch the first video, please click above.
事實上，這是我們第二次討論這檔股票。如果您想觀看第一部影片，請點擊上方。
00:17
The time on Summit Conductor is a major pivotal player in the global semiconductor industry, manufacturing, packaging, testing, and selling of integrated circuits. The company offers a variety of wafer fabrication processes, including complementary, metal oxide, Summit Conductor, Logic, Mix Signal, Radio Frequency, and Embedded Memory Technologies.
TSM's products are integral to the various high-speed computing applications, smartphones, Internet of Things, automotive, as well as a wide array of digital consumer electronics.
台積電的產品對於各種高速運算應用、智慧型手機、物聯網、汽車
00:47
TSM is a dominant player in the global foundry market, holding a significant share in the customers, including Apple, Broadcom, NVIDIA, as well as Qualcomm. The majority of sales for TSM are in the United States, with approximately 75% of their sales, and approximately 9% are
Now, from a competitive landscape, TSM faces competition from several key players, including US-based names like Intel Incorporated, which is known for its integrated manufacturing capabilities and efforts to expand its foundry business in the US. Global Foundries Incorporated, which is also a prominent player in the foundry space, offering a wide range of Summit Conductor
Manufacturing Services, as well as Korean giant Samsung Electronics, which is a major competitor with significant investments, both in the United States, as well as the mainstream Asian markets.
製造服務，以及韓國巨頭三星電子，三星電子是一個主要的競爭對手，在美國以及主流亞洲市場都有重大投資。
01:38
Now, when it comes to value, TSM's unique value proposition lies in its technological leadership in advanced Summit Conductor nodes, such as the three- and two-nanometer mode processes and its ability to manufacture high-performance chips on a massive scale. The company is a key enabler of AI hardware, due to its extensive customer base, including tech giants
like NVIDIA, Apple, as well as AMD. TSM's strategic global expansion, along with its new fabs of the United States, Japan, and Germany, enhances positions globally by reducing its reliance on Taiwan, and strengthening its roles in the global supply chain.
Lastly, what's really unique about TSM is it's the largest dedicated chip manufacturer in the world, with roughly 75% global market share.
最後，台積電真正獨特之處在於它是世界上最大的專業晶片製造商，擁有約 75% 的全球市場份額。
02:19
Now, in recent news, going back to October 17th of this year, the company reported quarterly profits for Q3, where they demonstrated strong execution, both in artificial intelligence, as well as high-performance computing demand, driven by 41% year-to-year revenue growth,
with continued diversification of global capacity outlook. The company's net income also jumped over 39% to $33.10 billion, beating both on the top and bottom line estimates.
You've got to keep in mind that in March of this last year, TSM announced an additional $100 billion investment in U.S. chip manufacturing. This was on top of $65 billion that it announced back in April of 2024. Actually, as of recent, TSM also notifies its some of its major
clients, including Apple, of upcoming price hikes. These price hikes could be between 8% and 10% and could impact across multiple product lines, including advanced nodes used in electronics such as smartphones and GPUs. Now, there are many positives, as always, to consider with TSM. First off, the company's Q3 highlights resulted in structural strength,
with impressive revenue growth over 40% supported by diversified global capacity and ongoing AI and high-performance computing demand. Its technological edge and expertise in advanced chip manufacturing ensures its critical role in the AI industry, with strong financials
and global presence supporting its resilient growth potential. It also exhibits foreign estimated revenue growth that's still exceptional at over 29%. Far surpassing its five-year historical averages, EBITDA growth at over 29% of sales is almost 10% higher than its
five-year historical average. When it comes to profitability, the net income margin is still outstanding. At over 43% of sales, this is far in excess of the sector median, which is close to 11%. This essentially shows TSM is not only large in terms of scale and revenue, but is generating a lot of profits from its operations. Despite the positives for TSM,
there's ongoing challenges we have to be mindful of as well. TSM faces valuation challenges, as its P/E ratio has reached multi-year highs, potentially limiting upside price performance, despite robust fundamentals. There are some production constraints the company is facing, which actually may be challenging to forward EPS growth. The company's reliance on cyclical
tensions, high overseas fab costs may actually increase threatening margins.
緊張局勢，海外高昂的晶圓廠成本實際上可能會威脅到利潤率。
04:42
Lastly, export restrictions and geopolitical risks, particularly related to US-China trade relations, could impact TSM's global operations and its high conviction status, as it becomes increasingly tied to US policy and markets. Now, let's look at the technical picture for TSM.
Overall momentum is slowing, and if support levels are violated, further weakness in the stock is possible. The MACD is indicating that the near-term trend is bearish at this time, and TSM chart formation shows signs of reversing its recent trend, as indicated with price trading below the 20, as well as 50-day moving averages.
Now, upside to momentum as measured by the weekly RSI is below 70, falling. This indicates that TSM may be under distribution, further illustrating potential near-term weakness.
Now, despite the stock trading below its 20 and 50-day moving averages, the stock is still trending above its 200-day moving average, which indicates that the intermediate-term price pattern remains up. But it still may be in the midst of a short-term consolidation, along with the broader market. Now, in summary, despite macro risks, such as export
controls, tariffs, and geopolitics, as well as heavy investment needs, TSM's technology leadership scale and global footprint positioned it at the center of semiconductor, artificial intelligence, and high-performance computing growth. With best-in-class, advanced-node execution, and deep-customer relationships, TSM remains a pivotal player, enabling the next wave of computing,
while pursuing geographic diversification to enhance supply resiliency for years to come.
同時尋求地理多元化，以在未來數年增強供應鏈韌性。
06:08
Now, that's it for this week's edition of the Tech Corner. Please join us next week, where we're going to be highlighting semiconductor giant NVIDIA Incorporated.
本週的「科技角落」到此結束。請下週繼續收看，我們將重點介紹半導體巨頭輝達公司。
06:16
Don't forget to like and subscribe to the Schwab Network. I'm George Tillis. We'll see you next week.
別忘了按讚並訂閱嘉信理財頻道。我是George Tillis。我們下週見。
Tech Corner: TSMC & the Global Semiconductor Trade
