To: Johnny Canuck who wrote (69834 ) 1/18/2026 3:43:06 AM From: Johnny Canuck Respond to Semiconductor Stock Comparison: TSMC, Amkor, Aehryoutu.be 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 Verdict The 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 ].Gemini can make mistakes, so double-check it
