Taiwan Semiconductor Manufacturing Company Limited (TSM): It’s Good Because Of NVIDIA, Says Jim Cramer

We recently published 10 Stocks Jim Cramer Discussed As He Shared Key Insights From Morgan Stanley’s CEO. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the stocks Jim Cramer recently discussed.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest semiconductor contract manufacturer. Its shares, traded as depository receipts, have gained 21% year-to-date. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has prospered on the stock market due to the firm’s market share, which means that it will be the end-beneficiary of AI-chip demand. Cramer’s previous comments about the firm have also called it a proxy for NVIDIA’s shares. Here are his latest thoughts:

[TSM]”Yeah look, Taiwan Semi reports overnight. It’s an unbelievably good number but understand it’s really unbelievably good number because of high performance computing. In other words, it’s a good number because of NVIDIA.

“[Whether he was thrown off by a warning about Q3 margin]. Not at all. Not at all. I think that this is a company that still uses classic underperform, overdeliver. I meant underpromise, overdeliver.”

A close-up of a complex network of integrated circuits used in logic semiconductors.

Previously, Cramer explained how Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) had gained the favor of the Trump administration:

“Look, I’d like them to do Taiwan Semi, I mean Taiwan Semi and NVIDIA, they’re like the shovel ready and they go there, they pick, they watch tomorrow to see what state is the best and then they like go buy some shovels from Caterpillar and get to work. Yes! Yes! I mean I know it’s not optics if it’s Apple, but yes, they need to. And I don’t care which part. But they need to. And I think that maybe they want to do what they think is great for shareholders, and this is a waste of money for shareholders but we have an aggressive administration. And Taiwan Semi went and put real money and I think that Apple is putting real money and somehow it’s not visible.”

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Disclosure: None. This article is originally published at Insider Monkey.