Jim Cramer’s 5 Stock Calls and the Impact of Iran War: Apple, Alphabet, and More

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

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of Jim Cramer’s stock calls as he discussed the impact of the Iran war on the markets. A caller asked for Cramer’s thoughts on the stock and whether they should get in it. In response, he commented:

Look, I like Taiwan Semi very much, but I have to tell you, I am going to send you to NVIDIA. NVIDIA’s down a great deal. It’s suddenly become a disliked stock, and that’s when you want to own it.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) produces and sells integrated circuits and semiconductor devices. The company provides fabrication and other related services. During the January 27 episode, Cramer mentioned the stock and said:

I think this industry has a lot more going for it. Two weeks ago, Taiwan Semi, the world’s largest semiconductor manufacturer, reported a total blowout quarter. More important, management said that the demand’s on fire. They plan to invest heavily in building out the production capacity. For this year, Taiwan Semi guided for 52 to $56 billion in capital expenditures. That’d be up 27 to 37% from last year. Wall Street was expecting less than 45 billion.

When management was asked if that would be enough to fix the chip shortages, their answer was a clear no. Taiwan Semi doesn’t see supply and demand coming into balance until 2028 or 2029. So they’re planning to keep their capital expenditures high for the next few years. Again, great news for the semiconductor capital equipment makers.