Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was featured in a recent discussion by Jim Cramer, who highlighted the company's performance and its significance for artificial intelligence investing. The firm reported NT$1.046 trillion in revenue and NT$505 billion in profit for its fiscal fourth quarter, exceeding analyst expectations of NT$1.034 trillion and NT$478 billion. Shares have risen 7% year-to-date following the earnings release.
Cramer described the company's conference call as "amazing" and pointed to its results as an indicator of the AI industry's health. He noted that clients are demanding more equipment, with some even considering cutting off NVIDIA, and emphasized that the usual concerns about overspending and lack of returns were absent. "There was one question directly about a bubble," Cramer said, "and I'm not saying it was laughed out loud because the translation misses something, but what the essence of it was, they want it, we gotta make it."
The discussion also covered Taiwan Semiconductor's US operations in Arizona. Cramer mentioned that the chips produced there would have a larger form factor compared to those manufactured in Taiwan. He referenced founder Morris Chang's criticism but suggested the US buildout has been praised multiple times, adding, "you're starting to say maybe America isn't as bad a place to build as the critics say."
Cramer observed that the company's upbeat tone and lack of frivolity on the call underscored that investors cannot simply repeatedly buy stocks like Lam Research, KLA, and Applied Materials. Taiwan Semiconductor is the world's largest contract chip manufacturer, especially for leading-edge chips.