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Trader's Diary

Economic calendar

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Definición de términos:
Ganancias

Earnings

refer to the profits or net income generated by a company during a specific period.

  • Earnings are a measure of a company's financial performance and are often reported on a quarterly or annual basis.

  • Positive earnings indicate that a company has made a profit, while negative earnings indicate a loss.

  • Earnings can be influenced by various factors, such as revenue, expenses, taxes, and other financial activities.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Actual

Actual refers to the real or current value or result of something. In the context of IPOs, actual can refer to the actual price or number of shares sold in the IPO, as opposed to the estimated price or number of shares.

Estimate

Estimate refers to a prediction or approximation of something, such as the expected price or number of shares in an IPO. Estimates are often made by investment banks and analysts based on market demand and other factors.

Difference

Difference refers to the numerical or percentage variance between two values. In the context of IPOs, difference can refer to the variance between the estimated and actual price or number of shares sold in the IPO.

Percent

Percent refers to a fraction of 100, often used to express a proportion or rate. In the context of IPOs, percent can be used to express the difference between the estimated and actual price or number of shares sold as a percentage of the estimated value.

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OPV

IPOs (Initial Public Offerings):

An IPO occurs when a private company sells its stock to the public for the first time to raise capital or money.

The money raised from an IPO can be used for various purposes, such as paying down debt, investing in the company's long-term health, research and development, expanding into new product lines, or purchasing fixed assets.

During the IPO process, the equity shares of private investors

convert into publicly owned shares of the new entity, and early investors may sell their stock once the company's shares begin trading.

The chief benefit of an IPO is to help the company raise money and gain access to the capital markets, allowing for expansion and increasing credibility.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Name

The name is the official name of the company whose shares are being offered in the IPO.

Exchange

The exchange is the stock exchange where the company's shares are listed and traded. Examples of stock exchanges include the New York Stock Exchange (NYSE) and the Nasdaq.

Currency

The currency is the type of currency in which the company's shares are priced and traded. This can vary depending on the country and stock exchange where the company is listed.

Start date

The start date is the date on which the company's shares begin trading on the stock exchange after the IPO.

Offer price

The offer price is the price at which the company's shares are initially offered to the public in the IPO. This price is set by the company and its underwriters based on market demand and other factors.

Shares

Shares refer to the units of ownership in the company that are being offered to the public in the IPO. These shares can be bought and sold on the stock exchange after the IPO.

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Splits

Splits (Stock Splits):

A stock split occurs when a company increases the number of its outstanding shares of stock to boost the stock's liquidity.

In a stock split, the number of shares outstanding increases by a specific multiple, but the total dollar value of all shares remains the same.

Companies often choose to split their stock to lower its trading price to a more comfortable range for most investors and increase the liquidity of trading in its shares.

For example, if a company decides to split its stock 2-for-1, the number of shares outstanding would double, while the share price would be halved.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Split date

The split date refers to the date on which the stock split takes effect. It is the date when the new shares resulting from the split are distributed to existing shareholders. Optionable

Optionable refers to whether the stock is eligible to be used as an underlying asset for options contracts. If a stock is optionable, it means that options can be traded on that stock.

Old shares

Old shares refer to the existing shares of a company before a stock split takes place. These are the shares that will be exchanged for the new shares resulting from the split.

New shares

New shares are the additional shares that are issued to existing shareholders as a result of a stock split. The number of new shares is determined by the split ratio, such as 2-for-1 or 3-for-2, where shareholders receive a certain number of new shares for each old share they own.

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TSMC Continues to Lead with Robust AI Demand

Fecha: 11.12.2024

As I review my portfolio this month, Taiwan Semiconductor Manufacturing Co. (TSMC) remains a shining star, showcasing exceptional performance driven by surging demand for artificial intelligence (AI) hardware. In November alone, TSMC reported a remarkable 34% increase in sales, reaching NT$276.1 billion ($8.5 billion). These results highlight the company’s critical role as a supplier to major tech giants like Apple and Nvidia, as well as its pivotal position in the AI-driven transformation of data centers.

Strong sales growth amid industry uncertainty

Over October and November, TSMC's combined sales surged by 31.4%, solidifying confidence in the company’s ability to meet or even exceed its quarterly guidance. Analysts project a 36.3% growth in sales for the fourth quarter, a goal that seems attainable given the current momentum. With shares already up 80% this year, TSMC has clearly benefitted from the enormous capital expenditures by companies such as Microsoft and Amazon in building AI-driven server farms and data centers[1].*

AI as a growth engine

Since the introduction of ChatGPT in late 2022, AI has catalyzed a surge in demand for advanced chips, which are the backbone of modern data centers. TSMC has emerged as the industry’s go-to provider, ensuring reliable supply chains for companies racing to dominate the AI space. Even as concerns mount about the immediate returns on these massive investments – given the lack of a universally adopted "killer app" for AI – TSMC’s position remains strong. Its pricing power continues to grow, especially as competitors like Samsung Electronics and Intel struggle to match its efficiency in contract manufacturing.

Navigating challenges

Despite its success, TSMC is not without challenges. US export controls have affected shipments to Chinese AI-chip designers, raising questions about potential growth constraints in the region. Nevertheless, robust global demand for AI-related chips and high-end smartphone components has mitigated these risks. Bloomberg Intelligence reports that if TSMC maintains its two-month average run rate of 68.5%, as it has in previous years, its fourth-quarter sales could reach an impressive NT$861.5 billion.

What this means for my portfolio

TSMC’s performance reaffirms my confidence in its ability to navigate industry headwinds while capitalizing on growth opportunities. Its leadership in cutting-edge chip technology, coupled with strong partnerships with tech giants, places it in a league of its own. While I remain mindful of potential risks, such as geopolitical tensions and shifts in AI adoption, the company’s track record gives me reason to remain optimistic.

Looking ahead, TSMC's growth trajectory seems likely to extend into 2025, fueled by continued demand for AI chips and high-end semiconductor solutions. For now, TSMC remains a core holding in my portfolio, and I am eager to see how it continues to shape the future of technology. [1]

* Past performance is no guarantee of future results

[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.

 

https://finance.yahoo.com/news/tsmc-posts-34-sales-growth-055123686.html


[1] TSMC's share price performance over the past five years: https://tradingeconomics.com/tsm:us

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