Taiwan Semi (TSM) “seems to be a good fit” for a joint venture with Intel (INTC), George Tsilis, Senior Markets Correspondent, Schwab Network, said recently.
An economist who worked for CME Group in the past, Tsilis was also a Financial Advisor for BMO, a Canadian bank.
Tsilis also weighed in on the stock market’s outlook in his recent appearance.
A technician soldering components for a semiconductor board.
TSM, Intel Would Be Good Partners, Tsilis Suggests
Taiwan Semi and Intel are expected to launch a joint venture that would allow TSM to utilize the American firm’s manufacturing capacity in the U.S., Tsilis said.
Such a joint venture would make sense for TSM, Tsilis stated. What’s more, the Biden administration created financial incentives for companies to make chips in the U.S., and the Trump administration is pushing firms to launch high-end factories in America, Tsilis said.
Stock Markets May Not Regain Their Highs Anytime Soon, Tsilis Says
If the Trump administration rectifies its “policy errors” by lowering tariffs, the market will rebound further, Tsilis said.
However, even if such a scenario materializes, “consumer sentiment may be weak,” and analysts’ estimates for corporate profits could drop, causing investors to remain worried, he warned.
In light of the latter points, the market may not regain its prior highs for some time, he believes.
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This article is originally published at Insider Monkey.
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