While everyone in the market is trying to find out where the next stage of S&P 500 will continue, there are other unorthodox indicators in the technological sector indicating a new optimism for the future state of demand and growth in artificial intelligence, which will directly lead to greater demand and future income in the semiconductor industry. Knowing that the bets came out, one of the most vital players in space took a new step.
Semiconductor, dear Nvidia Co. NASDAQ: NVDA He announced that he would invest hundreds of billions in the development of infrastructure in the United States in order to attract a chain of deliveries of chips. This is especially important, since the COVID-19 violations demonstrated how important it is not to depend on international forces for semiconductor proposals. However, this is not where the center of action will be.
Most investors focus on NVIDIA from its popularity, but they tend to forget that there is a much more important company that supplies NVIDIA with the materials necessary for the development of their chips. That’s where Taiwan semiconductor production NYSE: TSM He enters the game, since new investments in the production of semiconductors indicate a greater demand for this giant chip manufacturer in the new development of the US supply chain.
Investments in Taiwan are a semiconductor key
TAIWAN SEMICONDUCTOR ManUFACTURING today
Taiwan semiconductor production
- 52-week range
- $ 125.78
▼
$ 226.40
- Dividend profitability
- 1.19%
- P/e ratio.
- 25.75
- Value is valuable
- $ 220.00
As the geopolitical tension between China and the United States has increased to such an extent that in the implementation of the embargo in the field of technology to which there is access to Asia, there is access to Taiwan the semiconductor to support (and expand) his presence on American soil can lead to several buyers feel more comfortable, buying shares.
This conflict can be seen through a ban on the use of a lithographic mechanism in China made Asml Holding NASDAQ: AsmlWhich damaged the European company to such an extent that its shares are traded below by 26.9% only over the past 12 months. This risk, however, is what the Taiwanese semiconductor could avoid through this trace of the United States.
With this in mind, investors can confidently assume that the resumption of a sense of security in Taiwanese semiconductor shares can stimulate a new institutional investment support, realizing that the importance of this action next to the growing demand in Nvidia will play a vital role. After the announcement of the total investment in the amount of up to 165 billion dollars in the development of the supply chain of semiconductors in the United States, this name becomes even more important for the industry.
New investment flows starting for the semiconductor shares of Taiwan
This feeling of updated safety in a global semiconductor landscape recently positively affected investment flows for Taiwan of semiconductor. Investors can see that the current level of 78% of the 52-week maximum shares seemed quite attractive for some customers to enter the company.
Over the past quarter up to 9.8 billion dollars. The United States in institutional capital entered the Taiwan campaign to repeat these optimistic views on the company. Some of the recent purchases were headed by NorthCrest Asset Management, which decided to increase its assets by 0.8% as of March 2025.
After this new distribution, the group currently owns the Taiwanese semiconductor shares up to 52.9 million dollars. USA. Despite the fact that this is not the largest possession, it serves as a bull signal, which can be perceived as a potential bottom for shares among the news about investments and support from the semiconductor environment of the United States.
What follows from these recent events is the potential for analysts by Wall Stretge, which will come with higher ratings in promotions and the best ratings within their prospects. As of January 2025, the most bull forecast was found in the ratings of Barclays analysts, which see in the Taiwanese semiconductor of excess weight, along with a target estimate of $ 255 per share.
Based on this point of view, the shares would have to make a new 52-week maximum in order to potentially attract more pulse and rally investors by 44.8% of the place where it is traded today. The vision of the two -digit growth potential from a company with a market capitalization of $ 763 billion is not an ordinary opportunity, and one of the investors should take advantage of.
Ultimately, there is a reason why the market as a whole is ready to pay a premium assessment for Taiwan shares with semiconductor shares today. Investors can see this fact by assessing the price to the book (p/b) set in 8.1x, which is a cool bonus for the rest of the 6.2 time of the computer sector.
Since the importance of shares in the supply chain of semiconductors and, therefore, the viability of the technological sector becomes more obvious, the reasons for the overpayment in this name become obvious, as investors now see in a wider environment.
Before considering the Taiwanese production of semiconductors, you will want to hear this.
Marketbeat monitors the highest and most effective analysts with the most effective Wall Street analysts and promotions that they recommend to their customers daily. Marketbeat has identified five shares that leading analysts quietly whisper to their clients to buy now before a wider market is conquered … and the Taiwanese semiconductor production was not on the list.
While Taiwan Semiconductor Manuapacturn is currently a moderate purchase rating among analysts, analysts with the highest rating believe that these five promotions are better buying.
View five shares here
Enter your email address, and we will send you the MarketBeat leadership for 5G investments and which 5G shares show the greatest promise.
Get this free report