While every person in the market tries to know where the next S& P 500 will go, there are other unconventional indicators in the technology sector indicating the new optimism of the future demand and growth in artificial intelligence, which will translate directly into more demand and future profits in the semiconductor industry. Knowing that the bets are parked, one of the most vital players in space has taken a new step.
Semi -connectors, darling Nafidia Company Nasdak: nvda It has announced that it will invest hundreds of billions in developing infrastructure in the United States to break the supply chain of chips. This is especially important because Covid-19 disorders show the importance of not relying on international powers to supply semiconductor. However, this is not where the center of the procedure will be.
Most investors focus on NVIDIA because of its popularity, but they tend to forget that there is a more important company to provide NVIDIA with the materials you need to develop its chips. This is the place Taiwan manufacturing semiconductors Nyse: tsm It plays its role, as new investments in the manufacture of semiconductors indicate more demand from the giant chips maker in developing the supply chain in the new United States.
Taiwan’s semiconductor investment is the key
Taiwan manufacturing semi -conductors today
Taiwan manufacturing semiconductors
- 52 weeks
- 125.78 dollars
▼
226.40 dollars
- Profit
- 1.19 %
- P/E ratio.
- 25.75
- The target price
- $ 220.00
Since geopolitical tensions between China and the United States are escalating to the degree of implementation of the siege on the type of technology that the Asian power has, Taiwan’s semi -conducting decision (and expansion) may lead its presence on American soil to some buyers to feel more comfortable in buying shares.
This conflict can be seen through the ban on the use of China for the stone printing machines that it made ASML contract Nasdak: AsmlThe European -based company has been to the point that its shares have been traded by 26.9 % during the past 12 months alone. However, it is this danger that Taiwan may be able to avoid it through this US imprint.
With this, in mind, investors can safely assume that a renewed sense of safety in semiconductor stocks in Taiwan may push support for new institutional investment, while realizing that the importance of this stock next to the growing demand in NVIDIA will play a vital role. After announcing a joint investment of $ 165 billion in developing the semiconductor supply chain in the United States, this name has become more important to this industry.
New investment flows that start for semiconductor stocks in Taiwan
This feeling of renewal in safety in the global semiconductor scene has affected the investment flows of semiconductor stocks in Taiwan recently. Investors can see that the current level of 78 % of the 52 -week stocks appear attractive enough for some buyers to come to the company and return it.
Over the past quarter, up to $ 9.8 billion of institutional capital flowed to semiconductor shares in Taiwan to repeat these optimistic opinions of the company. She led some of the last purchase by Northcrest Asset Management, which decided to strengthen its holdings by 0.8 % as of March 2025.
After this new allocation, the group now has up to $ 52.9 million of semiconductor stocks in Taiwan. Although this is not the greatest reservation, it is a bullish sign that can be considered a potential bottom of the share amid investment and support from the semiconductor environment in the United States.
The following of these recent developments is the possibility of Wall Street analysts with higher stocks and better rankers in their looks. As of January 2025, the most expected expectations were found in the categories of the Barclays analysts, who see that the semiconductor Taiwan shares increase weight along with the target of $ 255 per share.
Based on this view, the arrow will have to make the highest new level for 52 weeks to attract more investors from momentum and gathering by 44.8 % implicit in terms of trading today. Seeing the bullish capabilities of two number of market value of $ 763 billion is not a common opportunity and one of the investors must benefit from.
In the end, there is a reason that makes the market as a whole ready to pay an evaluation of a semiconductor share in Taiwan today. Investors can see this fact through the assignment assigned to the company’s price (P/B) at 8.1X, which is a highly slope allowance for the rest of the average of 6.2X in the computer sector.
Since the importance of the stock in the semiconductor supply chain, therefore, the vitality of the technology sector becomes more clear, the reasons for excessive payment in this name become clear, as investors now see in the broader environment.
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