Comparing the company’s valuation based on the PE ratio on a trailing twelve-month basis, TSMC is undervalued as compared to peers like Broadcom (AVGO), Texas Instruments (TXN), and Qualcomm (QCOM). For instance, the projected partnership with Intel (INTC) positions TSMC to become a significant supplier of 3-nanometer chips, marking a strategic collaboration. Intel’s forecasted orders worth $14 billion for 3nm chips in 2024 and 2025 indicate TSMC’s growing role as Intel’s foundry partner.
And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research. It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers’ vested interests, these analysts issue more favorable ratings https://forex-reviews.org/ than their research would support, misguiding investors far more often than helping them. The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every “Strong Sell” recommendation, brokerage firms assign five “Strong Buy” recommendations.
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Meanwhile, the Dow gained 1.47%, and the Nasdaq, a tech-heavy index, lost 0.23%. Taiwan Semiconductor Manufacturing Co.’s (TSM) September revenue fell less than expected as artificial intelligence demand helped to offset weak smartphone and PC sales. The United States has extended a waiver to Taiwanese semiconductor giant TSMC to supply US chip-making equipment to its factories in China, the island’s economic affairs minister said Friday. Hosted by Brian Sullivan, “Last Call” is a fast-paced, entertaining business show that explores the intersection of money, culture and policy.
This blend of value and growth potential makes TSMC a compelling choice for those looking to invest in a company at the forefront of technological innovation and industry leadership. TSMC stands out as a formidable force in the semiconductor industry, continuously pushing the frontiers of technology with its advanced N3 and N5. These innovations solidify its market leadership and drive revenue growth, as evidenced in its recent financial performance. At ground level, TSMC observes strong customer interest and engagement in its 2-nanometer technology, comparable to or higher than seen with N3 at a similar stage.
- Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month.
- This represents a $2.17 dividend on an annualized basis and a dividend yield of 2.18%.
- It makes integrated circuits for customers based on their proprietary IC designs.
- Chipmaker Taiwan Semiconductor (TSM) shared falling revenue in the month of September, asserting the declines were better than expected.
Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 34% of all 250+ industries. TSMC posted a third quarter profit of $6.51 billion – its second straight quarter of profit decline – as weak demand for consumer electronics persists. Yahoo Finance anchors Seana Smith and Brad Smith break down the Q4 earnings report for TSMC with Patrick Moorhead, Moor Insights & Strategy Founder and CEO. Taiwanese President Tsai Ing-wen said Wednesday that the people of her country remain ‘clear-eyed’ about the threat of war with China, but that she believes that “this is not the time for them to cons… Joe Terranova, Virtus Investment Partners chief market strategist, joins ‘Power Lunch’ to take on the growth versus value debate and offer his market outlook. There is a huge wave of investment in semiconductor equipment in the U.S. and Europe.
Morris Chang founded Taiwan Semiconductor Manufacturing Company Limited in 1987. The company was founded as and remains to this day the world’s leading pure-play semiconductor foundry. A semiconductor foundry manufactures semiconductors for other companies at their specification; clients of Taiwan Semiconductor include but are not limited to Advanced Micro Devices, Apple, NVIDIA and Broadcom. Even some semiconductor manufacturers with their own production facilities, such as Intel and Texas Instruments, use Taiwan Semiconductor to some degree. Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes.
As the market closed yesterday, the Semiconductor – Circuit Foundry industry was having an average PEG ratio of 2.77. Taiwan Semiconductor Manufacturing Co., Ltd. engages in the manufacture https://forex-review.net/ and sale of integrated circuits and wafer semiconductor devices. The company was founded by Chung Mou Chang on February 21, 1987 and is headquartered in Hsinchu, Taiwan.
Key Earnings Data
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.97 per share and a revenue of $66.45 billion, representing changes of -24.35% and -12.42%, respectively, from the prior year. Shares of the chip company witnessed a gain of 12.62% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 14.04% and outperforming the S&P 500’s gain of 10.72%. American depositary receipts (ADRs) of TSMC (TSM) rose over 4% in early trading on Thursday after the semiconductor maker posted better-than-expected results and gave an upbeat outlook for the sector.
Terms & Info
Thus, these advanced nodes, defined as 7-nanometer and below, constituted 59% of the wafer revenue. Over the past month, the Zacks Consensus EPS estimate has remained steady. © 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed.
And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. Although TSMC is the foundry leader, each generation of process technology matures and commoditizes quickly, forcing the company to deal with pricing pressure. 289 employees have rated Taiwan Semiconductor Manufacturing Chief Executive Officer Morris Chang on Glassdoor.com.
According to 2 analysts, the average rating for TSM stock is “Strong Buy.” The 12-month stock price forecast is $125.0, which is an increase of 25.89% from the latest price. The technique has proven to be very useful for finding positive surprises. Taiwan Semiconductor Manufacturing Co. is the https://forexbroker-listing.com/ world’s largest dedicated contract chip manufacturer, or foundry. It makes integrated circuits for customers based on their proprietary IC designs. The firm has long benefited from semiconductor firms around the globe transitioning from integrated device manufacturers to fabless designers.
The company’s proactive engagement with customers early in the technology life cycle reflects positive market reception for its future offerings. At the bottom line, Q3 EPS of TWD8.14 or $1.29 and a return on equity (ROE) of 25.8% underscore the company’s profitability and financial strength. These figures indicate TSMC’s ability to generate earnings for shareholders and efficiently utilize its resources to maintain healthy investment returns. Its undervaluation compared to historical and sector averages and solid technical indicators positions it for potential price appreciation.
Let’s take a look at what these Wall Street heavyweights have to say about TSMC TSM before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Our experts picked 7 Zacks Rank #1 Strong Buy stocks with the best chance to skyrocket within the next days. Additionally, a prudent 20% is directed toward specialty technologies, while 10% is allocated for advanced packaging, testing, mask-making, and other crucial aspects. This disciplined allocation reflects TSMC’s efficient capital planning to drive growth through technological advancements in the product pipeline. The most recent trading session ended with TSMC (TSM) standing at $97.31, reflecting a -1.59% shift from the previouse trading day’s closing.