Amazon's Dominance Slips As TSMC's Vital Role in AI Fuels Soaring Growth
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Amazon's growth has slowed recently in key areas like AWS and e-commerce, while its stock remains below 2021 highs. There are signs it is losing its competitive edge.
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Taiwan Semiconductor Manufacturing (TSMC) is the world's largest chip manufacturer, handling production for companies like Apple and Nvidia. It has tremendous market power.
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TSMC delivered hugely profitable Q4 results, with $8.2B in operating income on $19.6B in revenue - a 42% operating margin demonstrating pricing power.
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TSMC is vital for AI and generative AI given its position supplying advanced chips to companies like Nvidia. Demand vastly outstrips supply.
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With a $721B market cap, TSMC is more valuable than Tesla, and the author argues it deserves a spot alongside Amazon in the "Magnificent Seven" big tech stocks.