TSM

3 Stocks Set to Capitalize on Emerging Market Trends

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Certain companies stand at the edge in the global markets, capitalizing on emerging trends with massive gains. From the relentless push for cutting-edge semiconductor technology to the burgeoning demand for renewable energy resources and electric vehicles, investment opportunities are constantly shifting. In the ongoing market backdrop, three companies hold a decisive moat.

The first one holds technological progress in semiconductor manufacturing. This is gearing up to capitalize on the surge of AI-related applications and high-performance computing demand. Meanwhile, the second one strategically positions itself within the energy transition. The company is focusing on producing base metals essential for renewable energy infrastructure. And finally, the third one is a leader in the lithium supply. It capitalizes on the escalating demand driven by the electric vehicle revolution.

Read more to delve into the strategies of the first one’s semiconductor dominance, the second one’s quest for sustainable resource production, and the third one’s vitality in the electrification of transportation.

TSMC (TSM)

Taiwan Semiconductor, TSMC (TSM) on phone screen stock image.

Source: sdx15 / Shutterstock.com

TSMC’s (NYSE:TSM) fundamental strength is in its tech lead. This is evident from its continuous investment in advanced semiconductors, including 3-nanometer (N3) and 2-nanometer (N2) processes.

Due to the rapid demand for AI applications and high-performance computing, TSMC outperformed the foundry industry in 2023 despite the macro-adversities of U.S., China, and Taiwan issues. TSMC’s revenues fell by 8.7% in 2023. However, TSMC projects low-to-mid 20% top line growth for 2024.

Notably, this growth outlook is based on continued strong demand for its industry-leading semiconductor technologies. TSMC’s revenue participation by technology suggests advanced nodes (3-nanometer, 5-nanometer, and 7-nanometer techs) collectively accounted for a major fraction of its wafer revenue.

In Q4 2023, 3-nanometer technology contributed 15% of wafer revenue, while 5-nanometer and 7-nanometer accounted for 35% and 17%, respectively. Advanced Technologies (

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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