Taiwan Semiconductor Manufacturing tumbles as investors shrug off stellar results

STILL. >> GREAT SEEING YOU, MY MAN. SPEAKING OF TECHNOLOGY, ONE OF THE MOST IMPORTANT GLOBAL NAMES JUST POSTED RESULTS IN THE BLUE AWAY, BLUE THE COVER OFF, TAIWAN SEMICONDUCTOR PHENOMENAL REPORT. MY NEXT GUEST IS PART OF GLOBAL TECHNOLOGY RESEARCH TEAM MAKING A LOT OF WAVES AND GREAT CALLS. SECURITIES MANAGING DIRECTOR SENIOR RESEARCH ANALYST, KEVIN CASSIDY. YOU JUST MADE MAJOR CHANGES YESTERDAY AHEAD OF THE EARNINGS AND BEFORE WE TALK ABOUT THOSE, I DON'T IF YOU HAVE OFFICIAL COVERAGE ON TAIWAN SEMI, THE TONE SEEMS TO BE UP FOR SEMICONDUCTORS. >> THANK YOU FOR HAVING ME ON TODAY AND YES, I DON'T FOLLOW TAIWAN SEMICONDUCTOR AS A STOCK, BUT I DO FOLLOW THEM AS UNDERSTANDING THE ENTIRE MARKET AND THEY HAVE A POSITIVE REPORT AND INCREASED UP NEXT BY EIGHT BILLING DOLLARS TO MID 62 BILLING DOLLARS IN SPENDING AS THEY MOVE TO THE NEXT GENERATION OF TECHNOLOGY WHICH DRIVES MORE PERFORMANCE AND KEEPS THE MARKET GOING FORWARD. >> YOU NOTED YESTERDAY, IT'S INTERESTING, WHO WILL PULL UP JUST THE TITLE OF IT THAT CAUGHT MY EYE, WHERE EVERYONE THINKS DEMAND WILL COME FROM, YOU TALK ABOUT THE ROLE OF AGENT THE AI, HOW IS THAT THE BIG DRIVER FOR THE NEXT FEW MONTHS OR QUARTERS? >> FOR YEARS WHEN PEOPLE HAVE TALKED ABOUT THE AI TRADE AND WE BEEN DOING TRADING OF MODELS AND AT A STAGE WHERE WE HAVE TRADE MODELS AND AGENT WORKFLOWS, THEY ARE FINDING ALL KINDS OF PRODUCTIVITY USING AGENTS IN EACH ONE OF THEIR EMPLOYEES GETS MORE DONE IN A DAY AND TO RUN THE AGENCY NEED CPU, GPU CARRIED US THROUGH THE TRAINING AND NOW THEY ARE POPULAR AND WE SEE A AND B IS THE LEADER IN CPUS AND SERVICE. >> I WANT THE AUDIENCE TO KNOW BECAUSE YOU DID MENTION INTRIGUING CHANGES, YOU DO HAVE AMD AS A PRIOR, YOU ARE AT 665 AND INTEL IS THE CELL AND HE WENT FROM 150, 165, LET'S START WITH AMD BECAUSE AGAIN, THERE WAS ALWAYS TUG-OF-WAR, THEY ALWAYS LOST AND NOW IN THE SHADOW OF NVIDIA, BUT GPU MAYBE LOSING THE LINE, WHAT DOES IT DO SPECIFICALLY? >> THIS QUARTER ALONE WE EXPECT SERVER CPU BUSINESS TO BE UP 70 YEAR OVER YEAR. >> THAT'S ABOVE GROSS MARGINS WITH THEIR SERVICE. >> AND EXECUTION YOU ARE OKAY, YOU THINK THEY CAN EXECUTE? THAT HAVE BEEN INCONSISTENCIES IN THE PAST. >> THEY MADE MAJOR CHANGES YEARS AGO SELLING MANUFACTURING UNIT NOW TO CHANGES, IT GETS 90% YIELDS FROM WHAT THEY SELL TO AMD. >> THIS STOCK HAD A HUGE RALLY AND WE COULD SEE RECENTLY NOT ONLY DID IT PEAK BUT IT CRASHED UNDER THE 200 DAY AND MORE PRONOUNCED FROM $140 TO 100 AND OBVIOUSLY YOU THINK IT IS OVERSOLD, WHAT IS THE THING THAT TURNS BACK AROUND? >> I THINK WHAT'S HAPPENED, IT RAN UP BECAUSE THEY SHOWED EVEN THE INCREASING PRICES DIDN'T SLOW DEMAND FOR SERVER OVERALL AND REVENUE IS TIED TO THE MEMORY MODULES INTO SERVERS. WHAT'S HAPPENED SINCE IS THERE IS A NARRATIVE OUT THERE BECAUSE OF THE SHORTAGE THE SERVER COMPANIES ARE PUTTING IN LESS IN THEIR SERVERS THERE IS CONCERN AROUND THAT BUT OUR VIEW IS IT IS LESS DENSITY BUT THE SAME NUMBER OF MODULES MORE TIED TO THE MODULE AND THE DENSITY. >> I'M RUNNING OUT OF TIME, FIRST INTEL IT'S COME DOWN A LOT THE LAST FEW WEEKS AND OBVIOUSLY IT'S HAD THIS HUGE RUN UP, YOU DID INCREASE YOUR TARGET YOU HAVE A CELL IN THIS ONE. >> THEY WILL COMPETE IN THE CPU MARKET AND FOR INTEL IT WILL BE GOOD NUMBERS SO IT IS NOWHERE COMPARED TO AMD AND THE FOUNDER SAID THEY ARE TRYING TO COMPETE WITH 62 BILLING DOLLARS AND INVESTMENTS AND INTEL AROUND 15 MILLION. >> THEY THINK THEY COULD BE HELP FROM THE ADMINISTRATION. FORTY SECONDS, YOU UPGRADED A FEW WEEKS AGO, YOU COULD SEE THE VOLUME, STOCK ERUPTED FROM 60 TO $92, LET'S PULL BACK, BUT CAN WE SAY ROBOTICS TRADE IS ON FOR NOW? >> YES TOMORROW WE WILL BE HOSTING A MEETING WITH A DESIGN EXPERT AND WE HAVE GOOD ATTENDANCE, ROBOTICS IS THE NEXT MOVE FOR AI, PHYSICAL AI. >> IT'S PHENOMENAL. I GOT SUBSCRIBERS IN IT AND A LOT OF PEOPLE HAVE BEEN WAITING