2 Millionaire-Maker Technology Stocks

Millionaire-Generating Technology Shares

In the dynamic world of technology, two companies are making significant strides: Taiwan Semiconductor Manufacturing Company (TSMC) and Coupang, an e-commerce marketplace in South Korea.

TSMC, the world's largest contract chipmaker, reported a 35% year-over-year increase in net revenue last quarter, reaching a staggering $25.5 billion. The company's spending on AI is expected to continue growing at an insatiable rate, fueling semiconductor demand. TSMC's largest customers include Nvidia, Apple, and Qualcomm, and its operating margins approached a remarkable 50% last quarter.

The company's growth is not just limited to its semiconductor business. TSMC spends around $35 billion annually building factories to produce computer chips, including over $100 billion in committed investments in the United States. This investment is set to drive further growth and profit for the company.

On the other hand, Coupang, a rival to Amazon, has been making waves in the e-commerce sector. The company's rapid growth is due to significant investments in infrastructure in South Korea. Coupang offers first- and third-party sales, delivery, warehouse network, and advertising and streaming video services. Customers who subscribe to Coupang's Rocket Wow membership receive free delivery as early as 7 a.m. the next morning if ordered before midnight.

Coupang's revenue last quarter grew 21% year over year in constant currency, while gross profit grew 31% year-over-year. Despite heavy investments, the company generated operating income of $154 million last quarter. Coupang's rapid grocery delivery service, technicians for appliance and car part installations, and its potential expansion into Taiwan, which is experiencing rapid revenue growth, are key factors contributing to its success.

Moreover, Coupang has announced its Intelligent Cloud computing service, similar to Amazon's offerings. The size of Coupang's cloud business is currently unclear, but there is potential due to spending on cloud companies for AI. With this move, Coupang has the potential to reach $100 billion or more in annual revenue in the near future.

In South Korea, besides TSMC, Samsung is a major competitive player in manufacturing AI-optimized semiconductors. The South Korean government supports Samsung and SK Hynix through national initiatives and R&D programs to maintain semiconductor leadership.

TSMC's reasonable price-to-earnings ratio (P/E) of 30 today and Coupang's current market cap of $55 billion reflect the market's confidence in these two giants. As they continue to innovate and expand, it will be interesting to see how they shape the future of technology.