Forget Nvidia? Analysts eye TSMC and Micron for better value before earnings

2025-08-27 tsmc

Taipei, Wednesday, 27 August 2025.
As Nvidia anticipates its earnings release, some analysts are pointing towards TSMC and Micron as potentially more lucrative investments. These companies boast attractive valuations coupled with positive earnings revisions. One chip stock commands a dominant share in global foundry revenue. The other maintains a sole-source position in the LPDDR data center market. For investors keen on the semiconductor sector, TSMC and Micron could represent strong buy opportunities, offering exposure to AI megatrends without the premium attached to Nvidia’s stock.

TSMC’s market position

TSMC’s role as a vital Nvidia supplier enhances its investment appeal [1]. Its stock performance is closely tied to the demand for advanced semiconductors [6]. On August 26, 2025, TSMC’s stock saw an increase, fueled by optimism expressed by the CEO regarding the upcoming quarter [6]. Nvidia’s CEO, Huang Jen-hsun, praised TSMC as one of the greatest companies in history, further boosting investor confidence [6]. TSMC is central to Nvidia’s success, solidifying its position in the semiconductor industry [6].

Geopolitical factors and manufacturing

Recent concerns about TSMC potentially becoming a ‘US-based’ company have eased after the U.S. government clarified it has no intention of acquiring a stake [7]. This alleviates some pressure on TSMC’s operations [7]. Moreover, the existence of Intel as a competitor provides TSMC with some relief from global regulatory and geopolitical pressures [8]. Intel’s presence helps mitigate the perception that TSMC has a monopoly in advanced processing, allowing TSMC some room to maneuver [8].

Taiwan stock market

Today, August 27, 2025, the Taiwan stock market closed up, marking a positive trend [6]. The market closed at 24,519.9 points, a rise of 214.8 points, or 0.88%, with a total transaction value of 4546.49 billion New Taiwan dollars [6]. Institutional investors played a significant role, with net buying reaching 76.09 billion New Taiwan dollars [6]. This activity reflects confidence in the market, particularly in key players like TSMC [6].

Expert opinions and future outlook

Analysts are generally advising investors to buy TSMC stock, with several setting target prices [6]. These recommendations reflect the company’s strong fundamentals and leadership in the semiconductor industry [6]. Despite Intel’s efforts to re-emerge, analysts at J.P. Morgan anticipate TSMC will maintain over 90% market share in advanced processing for the foreseeable future [8]. TSMC’s established expertise and ongoing advancements solidify its dominant position in the global semiconductor market [8].

Bronnen

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