What's the best part of the Semi supply chain to invest in?

Long_Equity
2024-10-25

What's the best part of the semiconductor supply chain to invest in?

I ran some quality growth metrics for each part. Here are some helpful findings:

- CAPEX: The highest capital expenditure is found in the fabs (so $Taiwan Semiconductor Manufacturing(TSM)$ $GLOBALFOUNDRIES Inc.(GFS)$ ). Although high levels are also found with chip designers.

- SBC: High levels are found particularly with the EDAs (so $Cadence Design(CDNS)$ and $Synopsys(SNPS)$ ), and also some of the designers ( $NVIDIA Corp(NVDA)$ ).

- ROC: High levels are found with the EDAs and equipment manufacturers.

- Growth: High rev growth found primarily with Logic & GPU designers (so NVIDIA).

For me personally, I continue to hold NVIDIA, Cadence, $Applied Materials(AMAT)$ and $KLA-Tencor(KLAC)$ .

ImageImage

TSMC Earnings Beat! Will the Giant Save the Semi Trend?
TSMC posted a net profit of T$374.68 billion ($11.4 billion) for the quarter ended Dec. 31, a record high for any quarter. That was in line with the T$377.95 billion LSEG SmartEstimate drawn from 22 analysts. SmartEstimates give greater weighting to forecasts from analysts who are more consistently accurate. Semiconductor shares gained in overnight trading with TSMC shares jumping 6%, Nvidia up 2%, ASML up 3%. ----------------- Will TSM earnings' beat save the semiconductor stock prices? Another all time high this week? What's your target price for TSM?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment
1