With its share price falling by 29.5% this year, the market has questioned Musk's multi-line operations strategy and its impact on the company's future. As CEO of Tesla, Musk also manages SpaceX, Neuralink, The Boring Co., as well as his recently acquired social media platform X (formerly Twitter) and AI startup xAI.$NVIDIA (NVDA.US)$With AI chip giants such as Nvidia making a fortune in the AI wave, the chip contract manufacturer who collaborates with Nvidia$Taiwan Semiconductor (TSM.US)$also intends to get a bigger share of the pie.

Taiwan Semiconductor's overnight surge in US stocks nearly 7% to a record high. At press time, the stock had risen more than 1% before the market opened, with a cumulative increase of about 60% this year, far ahead of the large cap.

Taiwan Semiconductor is considering increasing prices for Nvidia.

Taiwan Semiconductor recently held a shareholders meeting and stated that AI demand is more optimistic than a year ago. With the application of AI and the higher requirements for chips, Taiwan Semiconductor is confident about future growth. At the same time, Taiwan Semiconductor has officially undergone a leadership change, with former Chairman Liu De-ying retiring and passing the position to CEO Wei Zhe-jia. This means that Wei Zhe-jia has become the first person in many years to simultaneously hold the positions of chairman and CEO at Taiwan Semiconductor.

Taiwan Semiconductor is expected to continue its strong growth momentum in 2024, with the revenue expected to increase by 20% to 25% in US dollars for the year.

After the shareholders meeting, the newly appointed chairman of Taiwan Semiconductor, Wei Zhe-jia, indicated that he is considering raising the price of the company's AI chip foundry services and has discussed this issue with Nvidia CEO Huang Renxun. "I did complain to 'the 3 trillion man' (referring to Huang Renxun's rumored net worth of NT$3 trillion) that his products are too expensive. I think these products are indeed valuable, but I am also considering showing him our value." It is reported that Taiwan Semiconductor is the only production partner for Nvidia's most advanced AI training chips (including its latest Blackwell series).

"I did complain to 'the 3 trillion man' (referring to Huang Renxun's rumored net worth of NT$3 trillion) that his products are too expensive. I think these products are indeed valuable, but I am also considering showing him our value."

Taiwan Semiconductor is Nvidia's only production partner for its most advanced AI training chips (including its latest Blackwell series).

Wei Zhe-jia said that considering the price of Nvidia's chips and Taiwan Semiconductor's important role in their production, it is only normal to raise production costs. Morgan Stanley raised its target price for Taiwan Semiconductor's Taiwan stocks from NT$928 to NT$980, stating that given the value and technological advantages brought by its flexibility in the global chip manufacturing industry, the company can pass on the increased costs to customers. In addition, Nvidia CEO Huang Renxun has also stated that Taiwan Semiconductor's wafer prices are indeed too low. Nvidia is a key customer of Taiwan Semiconductor, accounting for 10% of the company's revenue in 2024. If Nvidia accepts the price increase, other key AI semiconductor customers may follow suit.

Dutch lithography machine manufacturer [ASML] previously announced that it will deliver its latest high-NA EUV to Taiwan Semiconductor this year. However, Taiwan Semiconductor stated that the so-called A16 node process technology, scheduled to be launched at the end of 2026, does not require the latest high-NA EUV from ASML and can continue to rely on Taiwan Semiconductor's older EUV equipment.

Taiwan Semiconductor plans to repurchase 3.25 million shares of its own company's stock from June 6 to August 5, at a repurchase price of NT$598 to NT$1281 per share. The repurchase is aimed at offsetting the dilutive effect of newly issued reserves for employee share rights. The repurchased shares will be cancelled.$ASML Holding (ASML.US)$Previously, it was stated that the latest high numerical aperture extreme ultraviolet (EUV) would be delivered to Taiwan Semiconductor this year. However, Taiwan Semiconductor stated that their so-called A16 node process technology, which is planned to be launched by the end of 2026, does not require the latest high numerical aperture EUV from ASML Holding and can continue to rely on Taiwan Semiconductor's old extreme ultraviolet equipment.

Planning to repurchase 3.25 million shares, Taiwan Semiconductor's outlook is viewed positively by major banks.

Taiwan Semiconductor announced on the exchange that it plans to repurchase 3.25 million of its own company's shares from June 6 to August 5, at a repurchase price of NT$598 to NT$1281 per share. The repurchase is aimed at offsetting the dilutive effect of newly issued reserves for employee share rights. The repurchased shares will be cancelled.

Goldman Sachs stated that Taiwan Semiconductor plans to repurchase its stocks at the high end of the range, which is its historical high, and should boost investors' sentiment in the short term.

It is worth mentioning that,$Intel (INTC.US)$Recently announced the Lunar Lake, the next-generation mobile processor for AI PCs, which will be fully manufactured by Taiwan Semiconductor for the first time.

Intel recently unveiled its next-generation mobile processor Lunar Lake for AI PCs, which will be fully produced by Taiwan Semiconductor for the first time. According to reports, the Lunar Lake computing chip (including CPU, GPU, and NPU, etc.) is manufactured using Taiwan Semiconductor's N3B process node, while the platform controller chip uses Taiwan Semiconductor's N6 process node.

Mooers,

What do you think about how much higher Taiwan Semiconductor can rise?

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Editor/tolk