Chipmaking is being pulled back to the U.S., pouring billions into new factories and creating strong demand for equipment. In July, TSMC added $100 billion to its Arizona plans, lifting its planned U.S. investment to $265 billion, while Micron raised its U.S. spending plan to more than $250 billion through 2035. Tool orders can arrive before a new fab reaches full production. The article argues that toolmakers such as ASML and Applied Materials get paid first, while fab operators like Intel, TSMC and Micron face their own risks. ASML trades at a P/E above 40, and export restrictions or Taiwan tensions could disrupt its sales.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Open a keyword to see other news on the same topic.
Related news
- 3D Chips (3D IC) - Global Strategic Business Report: 3D Chips Stack Up as AI Workloads Push the Market towards $45.2Bn
The report values 3D integrated circuits at $16.8bn in 2024, with the memory segment projected to reach $22.2bn by 2030 as data centres need denser, more energy-efficient chips. Growth is driven by cloud computing, data centres, AI and machine learning, along with demand for miniaturised consumer devices and heterogeneous integration. The memory segment is forecast to grow at a CAGR of 19.2% and LEDs at 18.2%. The US market was about $4.6bn in 2024, while China is forecast to grow at a CAGR of 16.6% to roughly $6.7bn by 2030. The analysis also covers tariff risks, supply chain shifts and 26 companies, and names TSMC, NVIDIA, Micron and Amkor among those in the competitive race.
- Elon Musk Says Optimus Is Tesla's Most Important Product. These 3 Suppliers Get Paid Before Tesla Does.
Elon Musk has suggested Tesla's Optimus humanoid robot could become its most important product, but making it profitable will require heavy investment in computing power, memory and batteries. The article highlights three suppliers that could benefit before the robot reaches the market: TSMC, whose third-quarter revenue rose 41% to $46.72 billion and whose advanced chips of seven nanometers or smaller made up 79% of wafer revenue; Micron, which Musk thanked for a substantial memory allocation and which could see demand from humanoid robots; and Panasonic, a long-standing Tesla battery supplier, though a specific Optimus battery deal has not been publicly confirmed. The article notes that years of engineering and production remain before Optimus is available for commercial sale.
- Better AI Chip Stock: Taiwan Semiconductor vs. Micron
The article argues Micron is the better AI chip stock compared with Taiwan Semiconductor Manufacturing, even though both are among the largest chip foundries by market cap. Micron makes memory chips with commodity-like pricing, while TSMC makes logic chips designed by companies such as Nvidia and AMD. Memory demand has outpaced supply and pushed prices sharply higher, and the shortage is expected to worsen in 2027 and 2028. Micron also has faster revenue growth and trades at 5.3 times forward earnings versus 24 for TSMC, a gap the author attributes to market doubts that the current memory demand wave will last. The author calls this valuation mismatch too large to ignore, while still considering TSMC a fantastic investment.
- Billionaire David Tepper's Appaloosa Management Returned 32% Through the First Half of the Year. Here Are His Top 3 Stocks.
David Tepper's Appaloosa fund rose 32% through the first half of the year, driven by concentrated bets on a few stocks, with about 40% of its public equity portfolio in three names per its latest 13-F filing. Amazon is its largest holding; Tepper doubled his stake in the first quarter and added in the second, while the article notes Amazon's free cash flow turned negative from heavy AWS spending and shares trade at 30 times forward earnings. Micron rose more than 300% in the first half and Tepper trimmed his stake by about 41% last quarter, but it remains a top holding as a severe supply shortage persists and equilibrium may not arrive until at least 2029. Taiwan Semiconductor, whose stake rose 61% over the year, trades at 25 times forward earnings.
- This Company Behind the World’s AI Chips Could Be a Huge Winner
The 24/7 Wall St. price target for Taiwan Semiconductor Manufacturing (TSM) is $530.67 over the next 12 months, with a Buy rating and 90% confidence. Shares are up 41.79% year to date but 12.3% below their 52-week high of $487.47. Management raised its full-year 2026 growth outlook to approximately 44% in U.S. dollar terms, from close to 30%, after several upgrades. TSMC reported $46.72 billion in revenue in its October 15 report, up 41.2% year over year, with fourth-quarter guidance of $52.3 billion to $54.3 billion. The article flags gross margin falling 1.3 percentage points to 66.4%, dilution from overseas fabs, and cross-strait tensions as risks, with its bull and bear scenarios reaching $551.68 and $442.84.
- Taiwan Semiconductor and ASML Are Incredible, but 1 of These Monopoly Chip Stocks Is Far Safer.
The article argues that Taiwan Semiconductor (TSM) and ASML are both near-monopolies, but Taiwan Semiconductor is the safer investment. ASML is the only maker of extreme ultraviolet (EUV) lithography machines, while Taiwan Semiconductor accounted for about 72.5% of chip fabrication revenue in Q2, a scale no rival matches. The author warns that ASML's business depends on chipmakers expanding capacity for the AI build-out, which may slow once that wave ends. ASML also trades at a sizable premium to Taiwan Semiconductor on both 2026 and 2027 earnings estimates.
Related markets
Latest news
- Oil Stocks Rally as WTI Crude Price Tops $103: Devon Energy and Diamondback Energy Gain 5%, Occidental Petroleum Rises 3%
WTI crude rose 3.56% over 24 hours to $103.01 per barrel, lifting Permian-focused producers Devon Energy (up 5% to $51.64), Diamondback Energy (up 5% to $206.70) and Occidental Petroleum (up 3% to $64.61) past a slumping broader market. The article links the rally to renewed concerns over U.S. strikes on Iran and to Diamondback management's description of a Strait of Hormuz disruption as a major supply shock, with spot crude peaking at $110.01 on October 19. Devon's Q2 2026 oil realizations averaged $88.09 per barrel against WTI's $92.47, and its Q3 guidance calls for 550,000 to 560,000 barrels per day as the Coterra merger adds a full quarter. The article also warns that oil is volatile, noting WTI slipped to $85.23 on September 25, and the national average gasoline price fell to $4.28 per gallon as of October 19. Devon had $7.8 billion of buyback authorization remaining after Q2 and plans to release its initial 2027 outlook in November.
- Lê Hoàng Khánh Nhựt Indicted, Company Discloses Important Documents
Da Nang Rubber JSC (DRC) disclosed that Board member and CEO Lê Hoàng Khánh Nhựt has been indicted for “embezzlement of property,” and the Board dismissed him as CEO and assigned Văn Trung Tâm to lead management. In Q3 2026, net revenue was over 1,048 billion VND, down 15%, while gross profit rose 6% to 175 billion VND as cost of goods sold fell faster than revenue. However, management expenses jumped to 55 billion VND, 2.4 times the year-earlier level, pushing after-tax profit for the quarter down 64% to nearly 15 billion VND. For the first nine months, net revenue fell 10.9% to 3,379 billion VND and after-tax profit was 63 billion VND, down 23%. The company plans an extraordinary shareholders' meeting after December 20, 2026, and DRC shares closed the October 23 session at 9,530 VND per share, the lowest level in six years.
- Musk's SpaceX is still restricting Starlink in Ukraine and the toll is rising
According to Ukrainian officials and an expert, Starshield, the military version of Starlink, remains throttled in Ukraine, and since October 14, any drone traveling above 100 mph has lost its connection, disrupting some missions. Despite recent comments from President Donald Trump that service was restored, Starshield terminals still had problems on Friday, according to Dmitri Alperovitch and Zelenskyy. The Wall Street Journal reported Trump had called Elon Musk about lifting the restrictions, but Trump later said he had not spoken with Musk, and Musk and SpaceX did not respond to requests for comment. Amid the disruptions, Ukraine has floated other satellite communications options, including a letter of intent with Nokia and ICEYE, though experts say alternatives are not yet comparable to Starlink.
- Doctorate-Holding Chairman Repeatedly Hit by Forced Margin Share Sales
Kosy Chairman Nguyễn Việt Cường has had shares sold under margin forced liquidation again, the second time in under a month, as KOS extends a run of limit-down sessions. From 19 to 23 October 2026 he lost 175,287 shares, cutting his stake from 33.17% to 33.09% of charter capital, bringing his total sold across recent periods to 736,951 shares. Two related entities, Kosy Real Estate Investment Co., Ltd. and Leo Regulus Investment JSC, were also sold 445,500 and 175,870 shares. KOS closed at 5,050 VND on 23 October, its 25th consecutive limit-down session and more than 82% below 32,950 VND on 16 September. Kosy attributed the pressure to weak liquidity, selling sentiment and some brokers cutting margin lending ratios and liquidating positions, while its reviewed H1 2026 net profit of over 15 billion VND, up about 121%, was only near 13% of its full-year plan.
- First Bank to Post Negative Q3 Profit Growth
Saigonbank (SGB) reported a Q3 2026 pre-tax profit of only 17.8 billion dong, down 78.7% year on year, as interest expenses rose faster than interest income and credit loss provisions jumped to 42.7 billion dong, roughly 3.9 times higher. Net interest income grew just 2.1% to 201.7 billion dong, operating expenses rose 14.4% to 184.3 billion dong, and non-interest income lines all declined. For the first nine months, pre-tax profit was 65.9 billion dong, down 74.4%, equal to about 21% of the bank's full-year pre-tax target of 310 billion dong. As of September 30, 2026, total assets were 35,373 billion dong, customer loans fell 1% to 21,754.6 billion dong, and customer deposits fell 4.4% to 25,171.5 billion dong, while bad debt rose 2.6% from the start of the year to 666.4 billion dong, or 3.06% of loans.
- Foreign investors net sell nearly 1,000 billion VND in the October 19-23 week, bucking the trend to aggressively accumulate one strong stock
Foreign investors net sold 969 billion dong over five sessions in the October 19-23 week. They unexpectedly bought net in two midweek sessions, but the buying did not last and they turned to net selling on the last trading day of the week. VN-Index rose 68.24 points (+4%) to close at 1,774.15 points, after dropping back toward the 1,670 level early in the week, supported by strong buying demand and high liquidity. By stock, FPT saw the largest net selling at 644 billion dong, followed by ACB (542 billion dong) and VCB (311 billion dong), while STB, MSB and VJC also saw substantial net selling. On the buy side, TCB led with 957 billion dong in net buying, followed by MSN (391 billion dong) and VIC (307 billion dong), and HPG drew 92 billion dong in net buying.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.