Jim Cramer is Talking About These 14 Stocks Before Earnings

1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 156

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) will conduct its third-quarter earnings conference on October 17 and Cramer said that he will be tuned in to listen to the call.

“Thursday, Taiwan Semi reports. What can I say? This is the company that manufactures NVIDIA’s chips. The stock’s been very, very strong, really ramped today. Call’s basically in the middle of the night because the times are different. Don’t worry. I’m going to set the alarm and I’m going to listen. No, forget the alarm. I just won’t go to sleep after the close.”

Taiwan Semiconductor (NYSE:TSM) is a leading player in the semiconductor industry, engaged in the manufacturing, packaging, testing, and sale of integrated circuits and various semiconductor devices. The company has outlined ambitious growth expectations, projecting a compound annual growth rate for revenue between 15% and 20% over the coming years. Additionally, it has forecasted maintaining a long-term gross margin of 53% or higher, alongside a return on equity (ROE) of 25% or more throughout economic cycles.

In the second quarter, Taiwan Semiconductor (NYSE:TSM) reported consolidated revenue amounting to NT$673.51 billion (1 NT = $0.031), with a net income of NT$247.85 billion. Compared to the previous year, revenue for this quarter saw a remarkable increase of 40.1%, while net income rose by 36.3%.

The company’s client base includes prominent names that highlight its significance in the AI chip sector across various industries. NVIDIA, a leader in this market, utilizes the company’s process nodes to produce chips that offer superior performance and energy efficiency compared to competitors. Moreover, partnerships with Apple enable the company to expand its reach in the smartphone arena.

While we acknowledge the potential of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TSM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

Read Next: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

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