Category: 3. Business

Affiliated Managers Group reported its third-quarter earnings, showing strong year-over-year profit growth and a clear jump in earnings per share. These results signal improving profitability and operational momentum for the company.

See our latest analysis for Affiliated Managers Group.

Affiliated Managers Group’s mix of upbeat earnings, continued share buybacks, and a newly affirmed dividend has clearly energized investors. The stock’s climbed 22.7% over the last 90 days, and shareholders have enjoyed a compelling 40% one-year total return. Both short- and long-term momentum point to growing confidence in the company’s trajectory.

If this momentum has you scanning for your next investing opportunity, it might be time to discover fast growing stocks with high insider ownership

With shares up sharply and the company delivering improved profits, the central question now is whether Affiliated Managers Group is still undervalued or if the market has already priced in the next stage of growth.

The narrative consensus pegs Affiliated Managers Group’s fair value well above the last close, signaling sizable upside in the eyes of market watchers.

Record-breaking inflows and rapid expansion in alternative assets have increased AMG’s alternative AUM by 20% in six months. The company reported its strongest organic growth quarter in 12 years, positioning it to benefit from persistent global demand for yield, diversification, and differentiated strategies. This directly supports top-line revenue and future net margin improvement due to higher fee structures in alternatives.

Read the complete narrative.

Want to see what’s really powering that premium valuation? The secret sauce is not just earnings, but a dramatic shift in future margins and business mix. Curious which financial forecasts are rewriting AMG’s price story? The full narrative has the numbers that could reset your outlook.

Result: Fair Value of $308 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, persistent outflows from traditional active strategies and AMG’s reliance on key affiliates could challenge the upbeat narrative if trends move against them.

Find out about the key risks to this Affiliated Managers Group narrative.

If you see the story unfolding differently or want to dig into the details yourself, you can quickly build your own perspective in just minutes. Do it your way

A great starting point for your Affiliated Managers Group research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include AMG.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Neogen (NEOG) shares caught some attention this week after the company reported a modest uptick in revenue along with a significant swing in annual net income. Investors are eyeing these results and parsing what they might signal for future growth.

See our latest analysis for Neogen.

Despite Neogen’s stronger revenue and improved net income, recent momentum is mixed. While the share price has surged 26% over the past three months, the total shareholder return across five years remains deep in the red at -82%. This sharp contrast is prompting investors to question whether the turnaround is gaining traction or just a brief respite.

For those keeping an eye on recovery stories and growth potential, now is a sensible moment to broaden your search and discover See the full list for free.

With shares rebounding but long-term returns still lagging, the key question now is whether Neogen stock is undervalued and primed for recovery, or if the recent run-up means future growth is already reflected in the price.

With the narrative fair value pegged at $8.17 and the last close at $6.40, the crowd’s perspective sharply diverges from current market pricing. This sets the stage for a closer look at the catalysts underpinning this belief in further upside.

Ongoing global complexity and risks within the food supply chain, alongside heightened consumer expectations for food safety and transparency, will drive further adoption of Neogen’s innovative pathogen detection and digital solutions by food producers and regulators, expanding the company’s addressable market and underpinning sustainable long-term revenue expansion.

Read the complete narrative.

What is fueling such a high fair value? The answer is surprising. Think operational gains, sector-wide trends, and a powerful margin shift, with each assumption just bold enough to move the needle. Want to see how a patient turnaround story could justify the biggest gap yet between narrative and market? Only the full narrative spills those details.

Result: Fair Value of $8.17 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, persistent problems in integrating recent acquisitions and ongoing weakness in animal safety revenue could quickly undermine the bullish outlook if these issues worsen.

Find out about the key risks to this Neogen narrative.

If you see the story differently or want your own perspective, it only takes a few minutes to shape your own view. Do it your way.

A great starting point for your Neogen research is our analysis highlighting 1 important warning sign that could impact your investment decision.

Seize the chance to act confidently on the hottest trends. Here are three ways to power up your portfolio before the market moves ahead without you:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NEOG.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

WASHINGTON — Intuitive Machines says its acquisition of satellite manufacturer Lanteris Space Systems will open new opportunities for the company, from participation in Golden Dome to developing a crewed lunar lander.

Intuitive Machines announced Nov. 4 that it had reached an agreement with Advent International, the private equity firm that owns Lanteris, to purchase the company for $800 million in cash and stock.

On an investor call after the announcement, company executives said buying Lanteris, previously known as Maxar Space Systems, will allow Intuitive Machines to expand beyond its lunar-focused markets, such as landers and relay satellites, into new applications.

“Intuitive Machines is positioned to become the next-generation space prime, applying our demonstrated agility and innovation with Lanteris’ unmatched satellite production scale and proven spaceflight reliability,” said Steve Altemus, chief executive of Intuitive Machines.

“The transaction represents the next step in Intuitive Machines’ evolution from a lunar-proven space infrastructure company to a vertically integrated space prime provider of choice, serving national security, civil and commercial customers.”

One opportunity Altemus cited is Golden Dome. Lanteris has contracts to provide its Lanteris 300 satellite buses to L3Harris for that company’s Space Development Agency (SDA) awards for Tracking Layer Tranche 1 and Tranche 2 satellites.

Those contracts “unlocked the potential of Lanteris 300 series spacecraft for national security applications and established it as a trusted, competitive supplier,” Altemus said. He added that the combination with Intuitive Machines could amplify that position.

“As Golden Dome takes shape, the combination of the ingenuity and innovation that Intuitive Machines brings with its systems and communications and navigation schemes, coupled with the very capable satellite buses produced by Lanteris, offers unique solutions that I don’t think are in the market today with any other vendor,” he said. “We feel like we’re in a good position for the future opportunities coming out of Golden Dome.”

The acquisition also advances Intuitive Machines’ lunar ambitions. Altemus suggested the company may use Lanteris’ capabilities to develop a larger lunar lander, potentially one capable of carrying astronauts.

“We actually are in a fantastic position to build a team and offer solutions for the Human Landing System. NASA is keenly interested in finding a way to deliver that earlier,” he said. “Intuitive Machines is going to throw our hat in the ring with Lanteris by our side and other companies joining our team. So you can expect an offering from Intuitive Machines.”

It’s currently unclear what ring, if any, Intuitive Machines will be able to throw its hat into. NASA Acting Administrator Sean Duffy announced Oct. 20 that the agency would “open up” the existing Artemis 3 contract to competition, but so far that means only seeking acceleration options from Blue Origin and SpaceX and a request for information, which has not yet been publicly released, for other companies.

Another lunar opportunity created by the acquisition could come from using Lanteris’ satellite buses for lunar spacecraft. Altemus said that while Intuitive Machines is building the first three satellites for a lunar communications relay constellation to serve NASA and other customers, future spacecraft may be built by Lanteris.

“We anticipate in that lunar constellation that there will be more demand and more customers for the satellites as we move forward over the coming three or four years, and so we’re anticipating that need and providing more capability for size, weight and power on those buses,” he said. That could include providing cislunar space domain awareness capabilities using those satellites.

He added that using larger Lanteris satellites for the lunar constellation “can prove out the capability for Mars data relay, and essentially those satellites would be precursors to Mars data relay satellites in the future.”

Intuitive Machines shared few details about how the Lanteris deal came together. “We had an M&A strategy that we’ve been working on for some time,” Altemus said, referring to mergers and acquisitions. He noted that in August, the company announced an agreement to acquire KinetX, which specializes in deep-space navigation and mission design, for $30 million.

“It was small but strategic, and they’re brilliant people that we added to the company. Next on the list was Lanteris,” he said.

The deal is financed in part by proceeds from a $345 million sale of convertible notes in August. The company said at the time that it planned to use most of the funds for general corporate purposes, including potential acquisitions.

“In August, we completed a $345 million gross convertible note offering with the intent to acquire a company that would transform us into a next-generation space prime,” said Pete McGrath, chief financial officer of Intuitive Machines. “Lanteris is that company.”

Related

Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the market average. And in our experience, buying the right stocks can give your wealth a significant boost. For example, long term United Overseas Bank Limited (SGX:U11) shareholders have enjoyed a 58% share price rise over the last half decade, well in excess of the market return of around 43% (not including dividends). However, more recent returns haven’t been as impressive as that, with the stock returning just 1.1% in the last year, including dividends.

So let’s assess the underlying fundamentals over the last 5 years and see if they’ve moved in lock-step with shareholder returns.

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To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it’s a weighing machine. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During the last half decade, United Overseas Bank became profitable. That’s generally thought to be a genuine positive, so investors may expect to see an increasing share price.

The company’s earnings per share (over time) is depicted in the image below (click to see the exact numbers).

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It’s fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for United Overseas Bank the TSR over the last 5 years was 104%, which is better than the share price return mentioned above. And there’s no prize for guessing that the dividend payments largely explain the divergence!

United Overseas Bank provided a TSR of 1.1% over the last twelve months. But that was short of the market average. On the bright side, the longer term returns (running at about 15% a year, over half a decade) look better. It’s quite possible the business continues to execute with prowess, even as the share price gains are slowing. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 1 warning sign we’ve spotted with United Overseas Bank .

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Singaporean exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

If you’re not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. Typically, we’ll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. If you see this, it typically means it’s a company with a great business model and plenty of profitable reinvestment opportunities. However, after briefly looking over the numbers, we don’t think Swift Haulage Berhad (KLSE:SWIFT) has the makings of a multi-bagger going forward, but let’s have a look at why that may be.

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For those that aren’t sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for Swift Haulage Berhad:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)

0.037 = RM52m ÷ (RM1.7b – RM318m) (Based on the trailing twelve months to June 2025).

Thus, Swift Haulage Berhad has an ROCE of 3.7%. On its own that’s a low return on capital but it’s in line with the industry’s average returns of 3.7%.

See our latest analysis for Swift Haulage Berhad

Above you can see how the current ROCE for Swift Haulage Berhad compares to its prior returns on capital, but there’s only so much you can tell from the past. If you’re interested, you can view the analysts predictions in our free analyst report for Swift Haulage Berhad .

When we looked at the ROCE trend at Swift Haulage Berhad, we didn’t gain much confidence. Over the last five years, returns on capital have decreased to 3.7% from 8.2% five years ago. On the other hand, the company has been employing more capital without a corresponding improvement in sales in the last year, which could suggest these investments are longer term plays. It may take some time before the company starts to see any change in earnings from these investments.

To conclude, we’ve found that Swift Haulage Berhad is reinvesting in the business, but returns have been falling. And investors appear hesitant that the trends will pick up because the stock has fallen 15% in the last three years. In any case, the stock doesn’t have these traits of a multi-bagger discussed above, so if that’s what you’re looking for, we think you’d have more luck elsewhere.

If you want to know some of the risks facing Swift Haulage Berhad we’ve found 4 warning signs (1 is significant!) that you should be aware of before investing here.

While Swift Haulage Berhad isn’t earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Amazon Web Services (AWS) and OpenAI have signed a seven-year, US$38bn cloud computing agreement that allows OpenAI to run core generative AI workloads on AWS infrastructure immediately.

The deal gives OpenAI access to “hundreds of thousands” of Nvidia GPUs now, with capacity slated to be fully deployed by the end of 2026 and room to expand into 2027 and beyond, according to the companies.

Under the multi-year partnership, AWS will provision compute at large scale for training and serving OpenAI models such as ChatGPT.

Amazon says clusters will use Nvidia GB200 and GB300 chips networked via Amazon EC2 UltraServers to reduce latency across interconnected systems, supporting both inference and next-generation model training.

The agreement is designed to scale to “tens of millions of CPUs” and very large numbers of GPUs as demand grows.

The size of the contract signals ongoing demand for AI infrastructure as model providers seek more reliable, secure capacity. Industry reports describe the arrangement as beginning immediately, with staged roll-outs through 2026 and optional expansion thereafter.

The move follows OpenAI’s shift to a more diversified cloud strategy after earlier exclusive arrangements. Coverage indicates Microsoft no longer holds exclusive hosting rights, while OpenAI continues to work with several providers.

Analysts frame the AWS deal as part of a wider pattern of long-term spend commitments across multiple clouds amid rising compute needs for large language models and agentic systems.

For AWS, the agreement lands as the company activates very large AI clusters, including Project Rainier—reported to comprise roughly 500,000 Trainium2 chips—aimed at high-throughput training at lower cost per token.

This background helps explain AWS’s emphasis on price, performance, scale and security in courting frontier model developers.

The partnership builds on recent steps that brought OpenAI’s open-weight models to AWS services.

In August 2025, AWS announced availability of two OpenAI open-weight models through Amazon Bedrock and SageMaker, giving enterprise developers another option for deploying generative AI while retaining control over data and infrastructure.

Media reports at the time described it as the first instance of OpenAI models being offered natively on AWS.

Amazon states that, within Bedrock, customers across sectors—including media, fitness and healthcare—are already experimenting with agentic workflows, coding assistance and scientific analysis using OpenAI technology.

The new compute deal is positioned to support that activity at larger scale and higher reliability as usage grows globally.

For international retailers and consumer brands, the AWS–OpenAI tie-up is likely to influence cloud strategy, vendor selection and AI roadmaps.

Consolidating training and inference on large, shared clusters could lower unit costs for generative AI services over time, while the use of EC2 UltraServers with Nvidia GB200/GB300 GPUs targets lower latency for production applications such as search, customer service, personalisation and supply-chain forecasting.

Observers also note that multi-cloud arrangements may become more common as leading model providers secure capacity across several hyperscalers to mitigate risk and match workload profiles to different hardware.

“Amazon and OpenAI agree $38bn partnership to boost AI development” was originally created and published by Retail Insight Network, a GlobalData owned brand.

 

The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.

• In early November 2025, Keysight Technologies introduced new high-density automated test equipment, advanced quantum simulation tools, and MediaTek announced a partnership with Keysight to showcase breakthroughs in pre-6G integrated sensing and communication technology.

• The combination of these product launches and alliances signals Keysight’s commitment to driving innovation in fast-evolving sectors such as quantum computing and next-generation wireless communications.

• We’ll look at how Keysight’s expanded quantum and wireless offerings could shape the company’s investment narrative going forward.

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To be a shareholder in Keysight Technologies, you need to believe in the company’s ability to lead in high-growth markets such as AI-driven infrastructure, quantum computing, and next-generation wireless technology. The latest product launches and the MediaTek partnership reinforce Keysight’s innovation leadership, but do not appear to have a material near-term impact on the most pressing challenge, increased costs from new tariffs, which could pressure margins if mitigation efforts lag or fall short.

Of the recent announcements, the November rollout of high-density automated test equipment is especially relevant, as it enhances Keysight’s core offerings for industries where rigorous power and performance validation are increasingly critical. While such advances support growth catalysts around AI and advanced wireless, whether they fully offset cost pressures depends on how quickly and effectively Keysight can scale adoption and maintain profitability.

Yet, in contrast, investors should be aware that even the most advanced products may not fully counter the effect of rising operating costs if tariff mitigation strategies take longer than planned…

Read the full narrative on Keysight Technologies (it’s free!)

Keysight Technologies’ outlook anticipates $6.3 billion in revenue and $1.2 billion in earnings by 2028. This scenario relies on a 6.5% annual revenue growth rate and a $656 million increase in earnings from $544.0 million today.

Uncover how Keysight Technologies’ forecasts yield a $187.60 fair value, a 4% upside to its current price.

Simply Wall St Community users provided five separate fair value estimates for Keysight, ranging from US$141.40 to US$190.01 per share. While many are focused on innovation’s upside, new tariff costs remain a key short-term concern that could affect near-term profitability and returns, underscoring why investor opinions can be so varied and worth exploring further.

Explore 5 other fair value estimates on Keysight Technologies – why the stock might be worth as much as 5% more than the current price!

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

Early movers are already taking notice. See the stocks they’re targeting before they’ve flown the coop:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include KEYS.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

STMicroelectronics (ENXTPA:STMPA) stock has seen some turbulence lately, moving lower over the past month. Investors are closely watching to determine if recent declines are signaling a new valuation opportunity or if this is just short-term volatility.

See our latest analysis for STMicroelectronics.

After a tough stretch marked by an 18.4% one-month share price decline and a year-to-date return that is still firmly negative, STMicroelectronics finds itself at a crossroads. Momentum has faded compared to last year’s high, and with a 1-year total shareholder return of -17.1% and deeper losses over three and five years, investors are re-evaluating the company’s long-term growth prospects and current valuation amid shifting market dynamics.

If you’re watching the semiconductor space and looking for more investment opportunities, now’s a good time to check out the See the full list for free..

With shares trading well below analyst targets and recent declines weighing on sentiment, the question now is whether STMicroelectronics is offering genuine value for long-term investors, or if the market is simply reflecting cautious expectations for future growth.

The prevailing narrative places STMicroelectronics’ fair value nearly 20% above its latest close, highlighting a gap that has many investors questioning whether the market is undervaluing growth and margin recovery potential. To get a sense of what could trigger a turnaround, consider what is driving these value estimates.

The normalization of distribution channel inventories, with genuine end-market demand driving industrial segment growth rather than just inventory replenishment, points to a healthy demand environment that should reduce unused capacity charges and structurally improve gross margins in coming quarters.

Read the complete narrative.

Think there is more to the story? The narrative’s full valuation hinges on bold profit margin rebounds and revenue growth estimates. Which forecasts tip the scales and make this number credible? Uncover the key projections that could spark a re-rating.

Result: Fair Value of $24.65 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, persistent margin pressures and ongoing competition in key markets could still challenge the bullish case for a strong turnaround at STMicroelectronics.

Find out about the key risks to this STMicroelectronics narrative.

If you have a different perspective, or want to dive into the numbers yourself, you can craft your own narrative in just a few minutes. Do it your way.

A great starting point for your STMicroelectronics research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Make sure you’re not missing out on stocks with potential. See how top investors navigate different markets and put fresh ideas at your fingertips today.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include STMPA.PA.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Crane NXT (NYSE:CXT) raised its full-year sales growth guidance to 9% to 11% following a solid third-quarter performance. However, management also lowered adjusted EPS projections because of macroeconomic headwinds impacting its payment business.

See our latest analysis for Crane NXT.

The stock’s volatile moves in recent weeks tell the story. After a sharp slide following its Q3 update, Crane NXT’s 1-year total shareholder return now sits at 11.5%, bolstered in part by a resurgence in its security technology business even as near-term profit guidance was trimmed. While the latest results reinforced confidence in long-term growth prospects, investors remain focused on the company’s ability to navigate headwinds in its payment division.

If you want to see how other ambitious companies are building momentum, now’s a smart time to discover fast growing stocks with high insider ownership

With the stock now trading at a sizable discount to both analyst targets and its estimated intrinsic value, the question for investors is clear: is this a genuine buying opportunity, or is the market correctly pricing in the risks to future growth?

The most widely followed narrative puts Crane NXT’s fair value at $77.33 per share, while its last close was $62.45. This positions the stock at a notable discount, raising the stakes for those weighing its future upside.

Strategic focus on disciplined M&A, expansion into adjacent segments (e.g., ID verification, digital authentication), and increased recurring service/software revenues diversifies Crane NXT’s portfolio. This positions the company for long-term margin expansion and reduced volatility in earnings.

Read the complete narrative.

Want to know what’s driving this optimism? The narrative hinges on a transformation in Crane NXT’s growth model, where higher margins and future profitability are not just hopes but bold projections. What if the real secret is how quickly their earnings could jump? You’ll want to see which financial leap the narrative foresees.

Result: Fair Value of $77.33 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, the company’s reliance on physical authentication and the integration of acquisitions could challenge margin gains if digital trends accelerate or if execution stumbles.

Find out about the key risks to this Crane NXT narrative.

If you see the story differently or want to dig into the numbers yourself, you can put together your own view of Crane NXT in just a few minutes. Do it your way

A great starting point for your Crane NXT research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include CXT.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Developments in artificial intelligence (AI) over the past few years have caused a paradigm shift in the technological landscape. For example, nine of the top 10 companies measured by market cap have clear ties to this once-in-a-generation technology.

One recent addition to the top 10 list is Taiwan Semiconductor Manufacturing (TSM 0.93%), also known as TSMC. The company boasts the world’s most advanced chip foundry and, as such, produces roughly 90% of the world’s most advanced semiconductors, including those for high-end computing and AI.

This has fueled a resurgence in interest in the once-stodgy chipmaker, as new shareholders have flocked to the stock. In fact, the unprecedented demand for high-end processors and TSMC’s market-leading technology have helped the company add more than $1 trillion in market cap since the dawn of AI in early 2023.

New research from The Motley Fool provides granular detail into how TSMC makes money. Not surprisingly, the lion’s share of the company’s revenue comes from the sale of chips used for high-performance computing (HPC). This includes high-end processors used in data centers and cloud computing to facilitate the training and running of AI models. The segment accounted for 57% of TSMC’s third-quarter sales.

Yet HPC only became the company’s dominant segment in early 2022. Investors might be surprised to learn that, until then, TSMC’s biggest moneymaker was the smartphone segment. In recent years, sales of smartphones have lagged, as a perfect storm of economic conditions encouraged users to hang on to their existing phones a bit longer. Surging inflation began in 2021 and rose to record levels, slowing consumer spending and punishing the smartphone market, then TSMC’s biggest business.

Taiwan Semiconductor Manufacturing

Today’s Change

(-0.93%) $-2.68

Current Price

$286.56

Key Data Points

Market Cap

$1486B

Day’s Range

$277.21 – $287.79

52wk Range

$134.25 – $311.37

Volume

964K

Avg Vol

13M

Gross Margin

58.06%

Dividend Yield

0.01%

The smartphone market has begun to recover, and smartphones overall represented 30% of TSMC’s third-quarter sales. This is thanks in part to the success of Apple‘s iPhone 17. Just last week, the company reported a quarterly revenue record that grew 8% year over year to $102.5 billion. CEO Tim Cook predicted that the December quarter would be the biggest in its history. Apple has historically been one of TSMC’s biggest customers, accounting for 24% of its revenue in 2024. This suggests that TSMC’s legacy smartphone segment has begun to heat up.

Taking a step back helps provide much-needed context. In the third quarter, TSMC generated revenue of $33.1 billion, up 41% year over year and 10% sequentially, while earnings per American depositary receipt (ADR) soared 39% to $2.92.

Despite its multiple growth drivers, TSMC is attractively priced, selling for 30 times trailing-12-month earnings, a discount compared to a multiple of 31 for the S&P 500.