TLDR
- Taiwan Semiconductor Manufacturing (TSMC) plans to invest $100 billion in US expansion, with 59% of its revenue coming from high-performance computing
- Amazon faces potential tariff challenges but remains strong with AWS growing at 19% annually and generating $40 billion in operating income
- Both TSMC and Amazon are trading at attractive valuations with forward P/E ratios of 16.5 and 27.4 respectively
- Meta Platforms typically sees advertising revenue bounce back stronger after economic downturns
- The Trade Desk experienced platform migration issues but remains a market leader in programmatic advertising
In a market spooked by President Trump’s tariffs and trade war concerns, several major technology companies are positioning themselves for long-term growth despite short-term challenges. Taiwan Semiconductor Manufacturing (TSMC), Amazon, Meta Platforms, and The Trade Desk all face various headwinds but maintain strong fundamentals that could reward patient investors.
TSMC recently announced plans to expand its US presence with $100 billion in additional investment. This move comes as nations worldwide seek to strengthen semiconductor supply chains, which are vital for cloud computing, artificial intelligence, and electric vehicles.
The Taiwan-based chip manufacturer builds components for tech giants including Nvidia, Amazon, and Alphabet. High-performance computing currently accounts for 59% of TSMC’s revenue, growing 7% quarter over quarter.
With the AI market expanding rapidly, TSMC expects revenue growth exceeding 20% year over year in 2025. Investors can currently purchase shares at a forward price-to-earnings ratio of 16.5, which appears attractive given the company’s dominant position in semiconductor manufacturing.
Cloud and AI Drive Growth
Amazon stock has declined recently due to tariff concerns, but the business remains well-diversified. While Chinese tariffs may impact Amazon’s e-commerce sellers, the company primarily functions as a marketplace offering fulfillment, advertising, and subscription services.
These services are expected to perform well regardless of where goods are sourced. Amazon’s North American retail revenue of approximately $400 billion should continue growing over the long term despite potential near-term tariff disruptions.
AWS, Amazon’s cloud computing division, represents the crown jewel of the business. It currently grows at 19% year over year with annual revenue exceeding $100 billion.
The division generated nearly $40 billion in operating income in 2024, highlighting its high profit margins. AWS made up only 17% of Amazon’s revenue in 2024 but produced 58% of its operating profits.
Amazon stock now trades at one of its lowest forward P/E ratios ever at 27.4. With profit margins of just 11% in 2024, the company has room to expand to 15% or higher in coming years as AWS continues to scale.
Advertising Powers Through Downturns
Meta Platforms, formerly known as Facebook, relies on advertising revenue across its social media platforms including Facebook, Instagram, Threads, WhatsApp, and Messenger. While ad budgets often face cuts during economic uncertainty, Meta has historically seen revenue bounce back stronger after brief dips.
The company experienced similar patterns during COVID-19 and the recession fears of 2022-2023. Analysts expect a similar trajectory throughout 2025, with five-year revenue projections remaining strong.
The Trade Desk operates in the advertising space as an intermediary between buyers and sellers. Beyond potential revenue fluctuations, the company recently faced challenges migrating users from its Solimar platform to Kokai.
This transition caused The Trade Desk to miss revenue guidance for the first time in company history, leading to a stock selloff. However, the company maintains its leadership position in programmatic advertising, which uses artificial intelligence to optimize ad campaign performance.
Investors with a five-year outlook may find current prices appealing as these short-term challenges are unlikely to impact long-term growth trajectories. The tech sector often experiences volatility, but companies with strong fundamentals tend to recover and grow stronger over time.
Looking Beyond Short-Term Noise
Market choppiness has many investors concerned, but focusing on longer timeframes can help maintain perspective. Five years ago, during COVID-19, many predicted permanent changes to work patterns that didn’t fully materialize.
Similarly, today’s tariff concerns and economic uncertainty may prove less impactful over a three-to-five-year horizon. Supply chains adjust, business models evolve, and strong companies adapt to changing conditions.
TSMC, Amazon, Meta Platforms, and The Trade Desk all face their own set of challenges in the current environment. However, each company maintains competitive advantages in their respective markets and continues investing in growth areas like AI, cloud computing, and advanced advertising technology.
For investors with available capital and a long-term perspective, the recent market turbulence may present buying opportunities in these tech leaders. Their current valuations reflect short-term concerns rather than long-term growth potential.
The semiconductor, e-commerce, cloud computing, and digital advertising sectors all benefit from ongoing digital transformation trends. Companies that can weather near-term challenges while positioning themselves for future growth may reward patient investors over time.
TSMC’s focus on AI chips, Amazon’s AWS dominance, Meta’s social media ecosystem, and The Trade Desk’s programmatic advertising leadership all represent potential growth drivers beyond current market concerns.
