Today's video focuses on recent news affecting Taiwan Semiconductor Manufacturing Company (TSM 6.29%) and Samsung Electronics (SSUN 5.72%). Both companies are expected to increase the cost of chip production in 2022 due to numerous macro events. Here are some highlights.
- TSMC and Samsung focus on manufacturing some of the most advanced chips used in emerging technologies today. TSMC is the leader in chip manufacturing with over 50% of foundry revenue in 2021, as reported by TrendForce. Samsung is the second-largest chip manufacturer, with roughly 18% of the market.
- Online reports have appeared that TSMC and Samsung both plan to increase the price of chips in 2022. Numerous macro events are the reason for the price hike, such as interest rates and inflation increases, COVID lockdowns, the war in Ukraine, and the increase in equipment cost.
- Friday, May 13, was a great day for investors, with growth stocks up double digits. Affirm Holdings (AFRM 2.66%) closed 31% up, Coinbase (COIN 4.30%) closed 16% up, and Nvidia (NVDA 4.14%) closed 9% up. While it was great to see some green finally, it is essential to remember that the Fool mentality is long-term investing.
*Stock prices used were the closed prices of May 13, 2022. The video was published on May 13, 2022.
