Semiconductor Stock Comparison: TSMC, Amkor, Aehr
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Summarize: youtu.be
This video from Chip Stock Investor compares three companies in the semiconductor supply chain—TSMC (TSM), Amkor (AMKR), and Aehr Test Systems (AEHR)—to determine which is the best investment for 2026.
1. TSMC: The "Set It and Forget It" Pick- Performance: TSMC remains the dominant leader, showing a 314% return over the last three years [ 03:02].
- Revenue Growth: The company reported a massive 37% year-over-year increase in 2025 revenue, reaching approximately $120.6 billion [ 06:16].
- Advanced Packaging: While primarily a wafer manufacturer, TSMC’s advanced packaging segment (e.g., CoWoS) is growing at a 21% CAGR, faster than its core wafer business [ 07:59].
- Efficiency: It maintains an industry-leading operating margin in the mid-40% range [ 09:04].
2. Amkor Technology: The Advanced Packaging Specialist- Market Role: Amkor picks up the packaging work that TSMC chooses not to handle because it doesn't meet TSMC's high profit-margin requirements [ 09:21].
- Growth Potential: Investors are optimistic that Amkor will capture billions in extra revenue as advanced packaging becomes critical for AI systems like Nvidia’s Vera Rubin [ 04:11].
- Financials: Its operating margins are much lower than TSMC's, currently between 6% and 7% [ 05:08]. The stock has recently doubled, which the hosts suggest might make it "a little bit hot" for immediate entry [ 14:40].
3. Aehr Test Systems: The High-Risk Small Cap- Business Shift: Aehr is attempting to pivot from the silicon carbide (EV) market to the accelerated computing/AI market through its acquisition of Incal Technology (referred to as Synoma in the transcript) [ 11:47].
- Recent Struggles: Revenue has been declining, with the most recent quarter coming in at just under $10 million [ 10:52].
- Outlook: Management expects to return to sequential growth in the second half of fiscal 2026, targeting $25–$30 million in revenue [ 11:27].
- Caution: The company recently issued more stock to bolster its cash reserves, which might indicate management feels the current valuation is high [ 13:33].
Final VerdictThe hosts conclude that TSMC is the best "set it and forget it" wealth compounder due to its massive scale and high margins [ 03:37]. Amkor and Aehr are viewed as stocks that require more "babysitting" due to higher volatility and more complex market transitions [ 14:21].
TSMC vs. Amkor vs. Aehr: Which Chip Stock is the Best Buy for 2026?
Chip Stock Investor · 6.1K views
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