$Taiwan Semiconductor Manufacturing(TSM)$
TSM’s #2 customer Nvidia, just behind TSM's #1 customer Apple, could in all probability be paying upwards of $10+ billion this year for TSM to make their chips. (Nvidia paid TSMC $7.73 billion in 2023 per SEC filing)
Taking into account how Nvidia alone accounted for only 11% of TSM’s revenue mix in 2023, one can extrapolate that TSM’s #2 customer moves up the stack as the lag time to build + strong order pipeline into 2H24 and 1H 2025 goes up significantly over the “just getting started” output for 2023. AMD is also likely moving up the stack nicely at TSM on ramped orders for their chips.
The list of orders and customers appears stronger at TSM as never before. 5nm, 3nm, and coming 2nm (Apple for 2nm) will likely boost TSM’s numbers with more capacity coming on line.
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