Zacks Investment Ideas feature highlights: Twilio and Taiwan Semiconductor Manufacturing

For Immediate Release

Chicago, IL – August 28, 2020 – Today, Zacks Investment Ideas feature highlights Features: Twilio TWLO and Taiwan Semiconductor Manufacturing Co. TSM.

2 Stocks for the Automation Tsunami for the Roaring 20s

The global pandemic has illustrated that our global economy and its symbiotic trading ecosystem is more delicate than corporate America initially thought. US businesses are now looking towards automation to reduce both their risk abroad and long-term marginal costs.

According to CPB's world trade monitor, global trade fell by 12.5% in Q2, the largest plunge since the data collection began 2 decades ago. With staggered economic lockdowns across the globe, supply chains have been in disarray, and enterprises are beginning to rethink their operations abroad.

Automation is popping up in the most unlikely places, like hospitality businesses with automated bartenders and robotic servers. The marginal cost to maintain staffing during duress times has been made apparent amid this pandemic as the government mandates bars and restaurants to limit capacity and completely close their doors in some cases.

I will break down a couple of well-positioned stocks set to dominate the automation space in the roaring 20s.


I have been touting Twilio as a buy since it was trading below $100 earlier this year. Today the stock is sitting at $265 per share and poised to go higher. Since its Q1 earnings release in May, TWLO has appreciated 115%, and analysts continue to raise their price targets on this revolutionary stock.

Twilio is a cutting-edge automation company that leverages artificial intelligence (AI) to help companies provide the most effective customer service. Twilio's unmatched AI capabilities, embedded in its remarkable customer engagement platform, could mark the end of foreign call centers.

Twilio is a platform-as-a-service (PaaS) company that provides businesses with a cloud-based programming platform, aka application programming interface (API), for digitalized communication. This interface gives developers the ability to add voice communication, messaging, video, and communication-based security to any mobile application, website, or other digital platform.

Twilio's AI-powered PaaS is trusted by many enterprises that rely heavily on customer satisfaction for continued growth. Companies depend on Twilio's smart platform to keep their customers happy.

There is a good chance that you have interacted with this exceptional PaaS at some point in your recent life. Twilio's capabilities are only going to improve, and its adaptation will continue to grow.

According to Twilio's most recent annual report, the cloud-based "platform serves over 180 countries today, making it as simple to communicate from São Paulo as it is from San Francisco". The company has over 200,000 active customer accounts, as of June 30th, more than tripling its clientele in only a year and a half.

18 out of 22 analysts are calling TWLO a buy today, with price targets sitting around $300 per share, representing an over 13% upside even after its crazy drive this year. Over the next decade, I am confident that this stock will push past $300 and towards the stratosphere as its leadership in this growing niche, but essential space continues to stimulate demand.

Taiwan Semiconductor Manufacturing Co.

TSMC is leading the fourth industrial revolution from behind the scenes. TSMC is the largest semiconductor manufacturer in the world (54% share) with a market positioning that is multiples ahead of its competitors. A world run by automation will need the highest quality chips and TSMC's control of the manufacturing positions it to be a primary driver of the roaring 20s looming automation tsunami.

This is another stock that I have been hyping as an excellent buy since last summer. This stock had been trading below $50 as recently as the end of May.

Building for The Future

TSMC creates 85% of the world's semiconductor prototypes. Its Open Innovation Platform supports start-ups and enterprises alike by reducing design barriers and improving first-time integrated circuit (IC) success.

TSMC has seen more semiconductors than any other company in the world. They are not only working at the largest scale but also with the most state-of-the-art technology to improve a firm's "design time, time-to-volume, time-to-market, and ultimately, time-to-revenue," according to TSMC investor relations site.

The most trusted tech names in the world turn to the most trusted semiconductor foundry on the globe for their manufacturing and innovative needs.

More and more tech companies are turning to foundries for their IC production needs as the technology required to compete becomes impossible to produce in-house. For example, Samsung and TSMC recently teamed up in the development of 5-nanometer transistors, which would give it the ability to put 30 billion transistors onto a chip the size of your fingernail.

This company has an enormous amount of growth ahead of it. Its realized economies of scale have rippled through the company's financials, positioning it to reap the benefits from the next wave of hyperscaling, AI development, as well as the implementation of 5G technology. All these revolutionary technological developments are going to propel the necessity of automation as technology becomes cheaper, faster, and more effective than human capital.

Final Thought

Every recession ends with increased automation, and 2020's medically induced economic coma is far from an exception. This most recent economic downturn has catalyzed economic digitalization like we have never seen before. Automation will be a centerpiece of the roaring 20s, and these two innovation-driven enterprises will be leading its development over the next decade.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

Follow us on Twitter:

Join us on Facebook:

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis Report
Twilio Inc. (TWLO): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research

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


More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.