Main financial assets discussed:
- Taiwan Semiconductor (TSM)
- Texas Instruments (TXN)
- Broadcom (AVGO)
Top 3 key points:
1. The stock of Taiwan Semiconductor has appreciated significantly since October 2022, but the author is skeptical about its prospects after such a large increase.
2. The company's valuation metrics have changed since October, with a forward 1Y P/S ratio of 6.2. However, if consensus revenue estimates hold true, the current valuation could be justified.
3. The company operates in a growing industry with strong long-term demand for semiconductors, but it also faces risks related to geopolitical tensions and potential recessions.
Recommended actions: **Hold**. The author believes that Taiwan Semiconductor is a strong company worth being exposed to, but investors should take precautions and protect their portfolios due to the unique risks associated with the company. The current valuation is considered fair, but a margin of safety is recommended.
Arm, the chip designer owned by Softbank, has filed for an IPO on the Nasdaq, with the valuation yet to be specified, while tech stocks remain resilient despite surging bond yields, and Microsoft restructures its mega-merger with Activision Blizzard to secure approval from UK regulators.
Semiconductor chip company Arm has filed for an IPO on the Nasdaq, seeking a valuation of up to $70 billion, but faces risks and potential headwinds due to financial challenges and geopolitical tensions with China.
Arm Holdings, the designer of central processing units (CPUs), has filed an F-1 with the SEC in its first step towards an initial public offering (IPO), seeking a valuation of $60 billion to $70 billion despite a decline in revenue and net income in the past year.
Arm Holdings Ltd, owned by SoftBank Group Corp, is planning to launch its roadshow for investors after Labor Day and set a price range for its much-anticipated IPO in September, with SoftBank selling about 10% of Arm's shares at a valuation of $60 billion to $70 billion.
Leading technology companies, including Apple, Nvidia, and Alphabet, have agreed to invest in Arm Holdings' initial public offering, which is targeting a valuation between $50 billion and $55 billion, according to sources.
Arm Ltd.'s public listing is facing lowered expectations, with the chip designer aiming to raise $5 billion to $7 billion and a valuation of $50 billion to $60 billion, down from previous targets, due to factors such as China risks and slowing smartphone market growth.
Arm, a chip-design company, is gearing up for a major IPO and analysts at Susquehanna believe it deserves a premium valuation similar to that of Nvidia.
Taiwan Semiconductor Manufacturing (TSM), Adobe, and Salesforce are three AI-oriented stocks that have the potential to reach a market valuation of $1 trillion by 2035.
Arm Holdings has priced its initial public offering at $51 per share, at the top end of the expected range, giving the chip design company a valuation of $54.5 billion.
Arm shares soared nearly 25% on its first day of trading on the Nasdaq, boosting U.S. stocks and sparking hope that the IPO market for tech companies is reviving. Additionally, positive economic data from China and a rebound in retail sales and industrial production contributed to market optimism.
TSMC's stock has declined due to weaker macroeconomic conditions and short-term pain in the PC and smartphone market, but the company is well-positioned to capitalize on the AI opportunity ahead with its advanced manufacturing technology and growing demand for AI chips.
