This article first appeared on GuruFocus.
Taiwan Semiconductor Manufacturing (NYSE:TSM), the world’s largest contract chipmaker, gained another showcase customer for its most advanced manufacturing technology after MediaTek unveiled the Dimensity 9600 Pro. TSMC’s U.S.-listed shares climbed approximately 1.1% to $418.06, putting the stock firmly higher as investors weighed another commercial win for its 2-nanometer process.
MediaTek is using TSMC’s 2nm technology for the premium Dimensity 9600 Pro while keeping the broader-market 9600M on the established 3nm node. That split matters. It lets MediaTek push its flagship phones onto the newest manufacturing technology without forcing the entire product family through the same transition. The company says the Pro chip’s neural processor improves initial generative-AI prompt processing by 51% from the prior generation, with devices powered by both processors expected shortly.
TSMC Gains as 2-Nanometer Chips Enter the Smartphone Race ยท us.finance.gurufocus
The bigger story is TSMC’s expanding 2nm revenue engine. In the second quarter, 2nm accounted for just 3% of wafer revenue, compared with 30% from 3nm and 33% from 5nm, leaving advanced nodes at a combined 66% of wafer sales. MediaTek’s launch gives the smallest of those categories another path to scale while preserving demand for TSMC’s highly profitable 3nm capacity. The valuation is already reflecting plenty of optimism: at $418.06, the shares sit 14.95% above the GF Value estimate of $363.69, a roughly $54 premium that suggests investors are already paying up for the next leg of advanced-node growth.