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Both Taiwan Semiconductor Manufacturing ( TSM -0.70% ) and ASML ( ASML -0.32% ) play critical roles in the semiconductor industry. Taiwan Semiconductor, or TSMC for short, is the world's leading semiconductor contract manufacturer. Given the cost to build manufacturing facilities (called fabs or foundries), the high capacity utilization needed for foundries to run profitably, and the technological expertise needed, most semiconductor companies prefer to just design chips and hire a third party to manufacture them. This is where TSMC fits in. ASML, meanwhile, makes the equipment that companies like TSMC use to manufacture semiconductors. While it has competitors, it is considered to have a near monopoly on extreme ultraviolet ( EUV) lithography, which are highly complex machines used to create advanced chips. This year, TSMC's stock has been the clear winner, up more than 90% as of this writing. ASML's stock, meanwhile, has fallen about 5% in 2024. Let's look at which stock could be set to outperform in 2025. Both stocks are riding the chip boom TSMC has been a big beneficiary of the overall proliferation of chips as well as the artificial intelligence (AI) infrastructure boom. The company's technological expertise has vaulted it to the forefront of advanced chip manufacturing. As such, the biggest chipmakers in the world, including Apple , Nvidia , and Broadcom , rely on it to manufacture their most advanced chips. Surprisingly, the AI chip boom has not helped all chip manufacturers, as TSMC's biggest rivals, Intel and Samsung , have struggled. This has allowed the company not only to gain share, but also to exert strong pricing power. In turn, this led to a strong gross margin for TSMC. TSMC saw strong growth this year, including seeing its third-quarter revenue jump 36% year over year to $23.5 billion. Meanwhile, its gross margin improved by 460 basis points sequentially to 57.8%, which helped lead to a 50% year-over-year increase in its earnings per American depositary receipt (ADR). 2025 is also setting up to be another good year for the company. According to Morgan Stanley , the company is set to nicely increase prices in 2025. Meanwhile, given the demand for AI and other chips, TSMC has been expanding to try to help companies like Nvidia keep up with demand. It also just announced its new fab in Japan had started mass chip production. TSMC's expansion should presumably help ASML, as it is one of its big three customers along with Samsung and Intel for its newer technology. But the company has called 2024 a transition year as it moves to its next-generation high-NA EUV technology. This transition appears to have slowed some orders. TSMC, meanwhile, has also balked at the high price of the new ASML machines (prices range from $350 million to $380 million per machine), but it is now expected to receive a machine by year-end. However, it has said it doesn't need the technology for producing current high-end chips, and it looks like it won't use the machines for mass production until at least 2030. Intel has been the company most receptive to ASML's new technology, being the first to get a new high-NA EUV technology machine, but its foundry business has struggled. Revenue fell for the segment last quarter, while losses have been mounting. The company is now in a bit of disarray following the retirement of its CEO in early December and reports it is looking to spin off its foundry business. As one of its big three customers, ASML could be affected. Nearly half of ASML's revenue in 2024, meanwhile, has come from China. This is despite the fact that the company is prohibited from selling its newer chipmaking technology to the country. This is a big shift from recent years, as China was just 9% of its revenue in the fourth quarter of 2022. This could be the result of Chinese companies rushing to get equipment on fears that export bans could expand to even older technology. While all this has led to some uncertainty surrounding ASML, the company is still basically a monopoly for high-end semiconductor equipment, and as chip production continues to grow, it should eventually benefit. Valuation and verdict From a valuation standpoint, TSMC is the cheaper stock trading at a forward price-to-earnings (P/E) ratio of around 22, while ASML's forward P/E currently sits at 29. TSMC has also been growing its revenue more quickly, up 36% last quarter versus 12% growth for ASML. TSM PE Ratio (Forward 1y) data by YCharts While TSMC is the cheaper stock growing more quickly, I wouldn't count ASML out. The semiconductor equipment business can be a bit lumpy, but this is a company with a virtual monopoly on high-end chipmaking machines in a market that is seeing continued increasing demand for advanced AI chips. Over the long term, it is set to be a winner. That said, for next year, TSMC edges it out as my pick. Fortunately, investors don't have to pick one or the other and can feel comfortable buying both for 2025.None
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Trump Deputy AG Pick Todd Blanche Seen Having Lunch With Kaitlan Collins, Elon M...The case of the killing of UnitedHealthcare CEO Brian Thompson has gotten the SNL treatment. On the cold open of the Dec. 14 episode of the NBC sketch series, cast member Sarah Sherman parodied prosecutor-turned TV personality Nancy Grace while discussing the public response to the arrest of Luigi Mangione , who was charged with murder Dec. 9 for the shooting death of the health insurance company executive outside a New York City hotel following a five-day search. "Our top story tonight, the masked CEO shooter has been unmasked. And guess what? It's game over, Luigi," Sherman's character said in the sketch , before the "game over" sound effect from Nintendo's original Super Mario Bros. video game was played. She continued, "And of course, everyone online celebrated the hard work of law enforcement in apprehending this dangerous criminal. Just kidding, y'all psychos made him a sex symbol." Sherman's character later introduced fellow SNL star Emil Wakim as "a guy who happens to look like Luigi Mangione." He noted, "This whole thing has kind of been a roller coaster for me. On one hand, I keep getting tackled by bounty hunters. But on the other hand, I've gotten some of the horniest DMs of my life. I mean, I haven't paid for a meal in Brooklyn in days." Mangione—who is expected to plead not guilty in the case , according to one of his attorneys, Thomas Dickey —was also mentioned on Weekend Update . "Everyone who went to high school with the alleged shooter said they were shocked that he could become an assassin, whereas everyone I went to high school with was shocked I didn't," cohost Colin Jost said, as one of his school yearbook photos was displayed onscreen. Episode guest host Chris Rock also referenced the murder suspect in his monologue. "Everybody's fixated on how good looking this guy looks. If he looked like Jonah Hill , no one would care," he said, joking, "They'd already given him the chair already." (E! and NBC are part of the NBCUniversal family.) Read on for more details from the ongoing murder investigation. Who is Brian Thompson? Brian Thompson was the CEO of UnitedHealthcare. He first joined the company in 2004 and held several positions before taking on the role of CEO in 2021. Prior to working at UnitedHealthcare, Thompson was employed at PwC, according to his LinkedIn profile. He also graduated with honors from the University of Iowa with a Bachelor's degree in business administration as an accounting major in May 1997, the school's public relations manager Steve Schmadeke told NBC News. Thompson, who lived in Minnesota, was married to Paulette Thompson —though according to public records viewed by E! News, they had been living in separate homes—and was the father of two sons. He was shot and killed in New York on Dec. 4, 2024. Thompson was 50 years old. How did Brian Thompson die? Patrol officers from the New York City Police Department’s Midtown North Precinct responded to a 911 call at 6:46 a.m. on Dec. 4, 2024 regarding a person who was shot in front of the New York Hilton Midtown hotel, NYPD Chief of Detectives Joseph Kenny said in a media briefing later that morning. Kenny noted officers arrived at the scene at 6:48 a.m. and found gunshot wounds on Thompson’s back and leg. The chief detective said Emergency Medical Services transported Thompson several blocks to Mount Sinai West, where the CEO was pronounced dead at 7:12 a.m. “The victim was in New York City to speak at an investor conference," NYPD commissioner Jessica Tisch said during the media briefing. "It appears the suspect was lying in wait for several minutes. And as the victim was walking to the conference hotel, the suspect approached from behind and fired several rounds, striking the victim at least once in the back and at least once in the right calf. Many people passed the suspect, but he appeared to wait for his intended target.” Tisch said the shooting appeared to be a “pre-meditated, pre-planned, targeted attack” and not a random act of violence. “The full investigative efforts of the New York City Police Department are well underway,” she noted, “and we will not rest until we identify and apprehend the shooter in this case.” What do investigators know about the shooting of Brian Thompson so far? According to Kenny, the shooter headed to the New York Hilton Midtown on foot and arrived outside the hotel five minutes before Thompson’s arrival. In a video, Kenny continued, Thompson was seen walking alone towards the Hilton at 6:44 a.m. after exiting his separate, nearby hotel apparently for a UnitedHealth Group investors conference that was scheduled to begin at 8 a.m. that day. The chief detective added the shooter—who ignored "numerous other pedestrians"—approached Thompson from behind, shot him, walked towards him and continued shooting. Kenny said the gunman then fled on foot before getting on an ebike, and the shooter was seen riding into Central Park at Center Drive at 6:48 a.m. Kenny said three live nine-millimeter rounds and three discharged shell casings were recovered during the investigation. During a Dec. 6 press briefing, Kenny said the words “depose,” “delay” and “deny” were written on the shell casing in marker. However, he’s noted the motive for the killing has yet to be confirmed. What have investigators revealed about the gunman’s timeline? During the Dec. 6 press briefing, Kenny said investigators have footage of the shooter arriving at Port Authority in New York the night of Nov. 24. “We believe that that bus originated in Atlanta,” Kenny continued. “It has several stops along the way, so we’re not sure where he got on the bus.” After the shooter arrived at Port Authority, Kenny continued, the gunman took a cab to the vicinity of the Hilton hotel, where he was for about half an hour before traveling by cab to an Upper West Side hostel. On the morning of the shooting, Kenny added, the gunman left the hostel at 5:30 a.m. and arrived at the Hilton hotel at 5:41 a.m. Kenny said the gunman continued to walk in the vicinity of the hotel before then going to a nearby Starbucks, where he purchased a bottled water and a snack. He then returned to the hotel, and the shooting occurred at 6:44 a.m. Immediately after, the gunman fled the scene. Kenny said the shooter was seen entering Central Park at 60th St. and Center Drive at 6:48 a.m. and exiting the park through W. 77th St. and Central Park West at 6:56 a.m. At 7:00 a.m., Kenny added, the gunman was spotted on W. 86 th St without the bike. And four minutes later, the chief detective continued, the shooter got in a cab at 86 th St. and Amsterdam Avenue. Kenny said the gunman was then seen in the vicinity of the George Washington Bridge at 7:30 a.m. Kenny told CNN on Dec. 6 investigators thought the shooter left NYC after he was seen at Port Authority. Who were investigators looking for? During the Dec. 4 briefing, Kenny said the shooter appeared to be a "light-skin male" who wore "a light brown or cream-colored jacket, a black face mask, black and white sneakers and a very distinctive gray backpack." Over the next few days, the NYPD released a series of photos of the individual they were looking for with the person's face was covered with a mask in many of the pictures. A senior law enforcement official told NBC News Dec. 5 the photos with the lowered face mask came from surveillance video at an Upper West Side hostel, and two separate law enforcement officials noted to the outlet investigators were trying to determine if the individual used a fake ID and cash for a hostel room. As for what led the individual to lower the face mask? "Apparently, there was an interaction while he was checking in, making casual conversation," Kenny said at the Dec. 6 briefing. "At some point, he pulled his mask down and smiled at the clerk." Kenny has also said a cellphone was found in an alley where the shooter fled before heading to the ebike, but it's unclear if it belonged to the gunman. Two law enforcement sources told NBC News a backpack was also found in Central Park. Kenny said investigators are "looking at everything"—including Thompson's social media and interviews with employees and family—that could help the case. They're also working with Minnesota and Atlanta law enforcement. Why was Luigi Mangione arrested? Pennsylvania’s Altoona Police Department arrested Luigi Mangione on firearm charges Dec. 9. According to a criminal docket obtained by NBC News, these include two felony charges—one of forgery and one of firearms not to be carried without a license—as well as three misdemeanors: tampering with records or identification, possessing instruments of a crime and providing false identification to law enforcement. NYPD commissioner Tisch said a McDonald’s employee recognized Mangione and that the Altoona police were then called. When asked if he had been to New York recently, Mangione "became quiet and started to shake," police said per NBC News . Tisch also called Mangione a "person of interest" in Thompson's murder and spoke about the efforts to find him, with her thanking law enforcement partners and the public. "For just over five days, our NYPD investigators combed through thousands of hours of video, followed up on hundreds of tips, and processed every bit of forensic evidence: DNA, finger prints, IP addresses and so much more to tighten the net," she said. "We deployed drones, canine units, and scuba divers. We leveraged the domain awareness system, Argus cameras and conducted aviation canvases, and our detectives also went door to door interviewing potential witnesses and doing the good old fashioned police work that our investigators are famous for. This combination of old school detective work and new age technology is what led to this result today." What did police find on Luigi Mangione? In addition to "acting suspiciously," Tisch added, Mangione was "carrying multiple fraudulent IDs as well as a U.S. passport." “Upon further investigation, officers recovered a firearm on his person as well as a suppressor, both consistent with the weapon used in the murder," she continued in the Dec. 9 briefing, per a video shared by NBC News . "They also recovered clothing, including a mask consistent with those worn by our wanted individual." Tisch added officers also recovered a “fraudulent New Jersey ID” that matched the one the individual used to check into the New York hostel prior to the shooting. "Additionally,” she continued, “officers recovered a hand-written document that speaks to both his motivation and mindset.” What other charges is Luigi Mangione facing? On Dec. 9, Manhattan prosecutors filed a murder charge against Mangione, according to court documents obtained by NBC News . The 26-year-old is also facing three counts of criminal possession of a weapon (two in the second-degree for loaded firearm and one in the third degree such as for a silencer) and one count of possessing a forged instrument. He has yet to enter a plea for any charges. What did Luigi Mangione state in his writings? According to NBC News, citing the NYPD, Mangione had three pages of writings on him that totaled less than 300 words when he was taken into custody. Three senior law enforcement officials told the outlet these writings read, in part, "Frankly these parasites had it coming." In the writings, the officials continued, Mangione said he acted alone. However, the officials told NBC News they haven't ruled out other actors at this time. “To the Feds, I’ll keep this short, because I do respect what you do for our country," Mangione's writings read, officials told NBC News. "To save you a lengthy investigation, I state plainly that I wasn’t working with anyone.” Officials said Mangione also added, "I do apologize for any strife or traumas but it had to be done.” However, Tisch noted Mangione's motive has yet to be confirmed. "I think when we look at the manifesto, or that three-page written document that was recovered, you see anti-corporatist sentiment, a lot of issues with the healthcare industry," she said in a Dec. 10 Today interview. "But as to particular specific motive, that will come out as this investigation continues to unfold over the next weeks and months." Has Luigi Mangione appeared in court? Mangione attended a hearing at the Blair County Courthouse in Hollidaysburg, Pennsylvania on Dec. 10. As he arrived, NBC News reported, he yelled out to families, "It’s completely out of touch and an insult to the intelligence of the American people." Per the outlet, Mangione did not waive extradition to New York and was denied bail. As a result, he will remain in Pennsylvania's SCI Huntingdon prison. His lawyer Thomas Dickey told reporters that Mangione will plead not guilty in Pennsylvania and will likely do the same in New York. "I haven’t seen any evidence that says he’s the shooter,” he said, per NBC News . “Remember, and this is not just a small thing: A fundamental concept of American justice is the presumption of innocence, and until you’re proven guilty beyond a reasonable doubt." Who is Luigi Mangione? Mangione is a suspect in the murder of Brian Thompson and is facing several other charges in both Pennsylvania and New York, including forgery and criminal possession of a weapon. He's an Ivy League graduate, having received a Bachelor of Science in engineering in 2020 and a Masters of Science in engineering at the University of Pennsylvania, the school confirmed to NBC News . NYPD Chief of Detectives Kenny shared additional details on Mangione's upbringing, saying he was born and raised in Maryland. His most recent address is listed as Honolulu but he also has connections to San Francisco, Kenny told NBC News. After Mangione's arrest, his family released a statement on X . "Unfortunately, we cannot comment on news reports regarding Luigi Mangione," they said in the Dec. 9 post . "We only know what we have read in the media. Our family is shocked and devastated by Luigi's arrest. We offer our prayers to the family of Brian Thompson and we ask people to pray for all involved. We are devastated by this news." What has Brian Thompson’s family said about his death? After learning of the shooting, Thompson’s family mourned his passing. “We are shattered to hear about the senseless killing of our beloved Brian,” a family statement obtained by NBC affiliate KARE in Minneapolis on Dec. 5 read. “Brian was an incredibly loving, generous, talented man who truly lived life to the fullest and touched so many lives. Most importantly, Brian was an incredibly loving father to our two sons and will be greatly missed. We appreciate your condolences and request complete privacy as our family moves through this difficult time.” Thompson’s wife Paulette also recalled how her husband had received threats prior to his death. "Yes, there had been some threats," she told NBC News Dec. 5. "Basically, I don’t know, a lack of coverage? I don’t know details. I just know that he said there were some people that had been threatening him." What has UnitedHealth Group said about Brian Thompson’s death? UnitedHealth Group, the parent company of UnitedHealthcare, also expressed how it was "deeply saddened and shocked at the passing of our dear friend" Thompson, flying its flags at half-mast at corporate headquarters in Minnesota. "Brian was a highly respected colleague and friend to all who worked with him," a Dec. 4 statement from the organization read. "We are working closely with the New York Police Department and ask for your patience and understanding during this difficult time. Our hearts go out to Brian’s family and all who were close to him.” And while the company noted "our hearts are broken," it shared in a Dec. 5 statement that it has also "been touched by the huge outpouring of kindness and support in the hours since this horrific crime took place." "So many patients, consumers, health care professionals, associations, government officials and other caring people have taken time out of their day to reach out," the message read. "We are thankful, even as we grieve. Our priorities are, first and foremost, supporting Brian’s family; ensuring the safety of our employees; and working with law enforcement to bring the perpetrator to justice. We, at UnitedHealth Group, will continue to be there for those who depend upon us for their health care. We ask that everyone respect the family’s privacy as they mourn the loss of their husband, father, brother and friend." However, there's also been public criticism about UnitedHealthcare, Thompson and America's healthcare system overall. This has included online conversations about insurance companies' claim denial rates as well as a look at accusations against Thompson. For instance, in a class-action lawsuit filed by the City of Hollywood Firefighters' Pension Fund in May 2024 and obtained by NBC News, Thompson was accused of selling more than $15 million of his personal UnitedHealth shares after allegedly learning of an investigation of the company by the U.S. Department of Justice before the public did. When asked about the trades allegedly made by Thompson and other executives, a UnitedHealth spokesperson told Bloomberg in April 2024 "these directors and officers followed our protocols and received approval from the company." The lawsuit, per the BBC , remains active. And while a motive for the shooting hasn't been revealed, many outlets have noted the words “depose,” “delay” and “deny” on the shell casings are similar to the title of the 2010 book Delay Deny Defend: Why Insurance Companies Don't Pay Claims and What You Can Do About It . Pennsylvania Governor Josh Shapiro slammed "deeply disturbing" online reactions to the killing: "In America," he said at a Dec. 9 press conference, per NBC News' video, "we do not kill people in cold blood to resolve policy differences or express a viewpoint." (E! and NBC News are both part of the NBCUniversal family).
SPOKANE VALLEY, Wash., Dec. 05, 2024 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced that it entered into a new financing arrangement with the Bank of Montreal and Callodine Commercial Finance which extends and increases its access to working capital through December 2029. The combined financing agreement provides up to $143 million in availability, subject to the Company’s borrowing base and other limitations. The new credit agreements replace Key Tronic’s asset-based line of credit with Bank of America, which was set to expire in December 2025. In connection with these agreements, the Company expects to write off approximately $0.9 million in unamortized capitalized loan fees. “We are excited to update our financing arrangements as we prepare for growth in coming years,” said Tony Voorhees, Chief Financial Officer. “We believe the new financing significantly enhances our access to working capital over the next five years and address liquidity to support our long-term growth plans. Additionally, we anticipate these new facilities will lower our interest expense and provide greater financial flexibility moving forward.” About Key Tronic Key Tronic is a leading contract manufacturer offering value-added design and manufacturing services from its facilities in the United States, Mexico, China and Vietnam. The Company provides its customers with full engineering services, materials management, worldwide manufacturing facilities, assembly services, in-house testing, and worldwide distribution. Its customers include some of the world’s leading original equipment manufacturers. For more information about Key Tronic visit: www.keytronic.com. Forward-Looking Statements Some of the statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to those including such words as anticipates, believes, expects, will, and similar verbs, or nouns corresponding to such verbs, which may be forward looking. Forward-looking statements also include other passages that are relevant to expected future events, performances, and actions or that can only be fully evaluated by events that will occur in the future. Forward-looking statements in this release include, without limitation, the Company’s statements regarding its expectations with respect to anticipated growth and the availability of financing, reduced interest expense, and financial flexibility under the new financing arrangements. There are many factors, risks and uncertainties that could cause actual results to differ materially from those predicted or projected in forward-looking statements, including but not limited to: the future of the global economic environment and its impact on our customers and suppliers; the availability of components from the supply chain; the availability of a healthy workforce; the accuracy of suppliers’ and customers’ forecasts; development and success of customers’ programs and products; timing and effectiveness of ramping of new programs; success of new-product introductions; the risk of legal proceedings or governmental investigations relating to the previously reported financial statement restatements and related material weaknesses, the May 2024 cybersecurity incident, and the subject of the internal investigation by the Company’s Audit Committee and related or other unrelated matters; acquisitions or divestitures of operations or facilities; technology advances; changes in pricing policies by the Company, its competitors, customers or suppliers; impact of new governmental legislation and regulation, including tax reform, tariffs and related activities, such trade negotiations and other risks; and other factors, risks, and uncertainties detailed from time to time in the Company’s SEC filings.