TSM - Taiwan Semiconductor's Price Hikes Are Here - Bullish Prospects Ahead
2024-06-29 10:00:00 ET
Summary
- NVDA's recent beat and raise performance has further buoyed multiple generative AI stocks, TSM included, with the latter running away from its 50/ 100/ 200 day averages.
- This is further aided by the foundry's projected price hikes from 2025 onwards, with the fully booked 3nm capacity underscoring its robust intermediate term prospects.
- Even so, with a capacity glut potentially occurring from 2025/ 2026 onwards as multiple foundries ramp up productions, we urge readers to temper their intermediate-term expectations.
- TSM has already charted a potential head and shoulder pattern, with more uncertainty likely over the next few weeks.
- While we are reiterating our Buy rating, investors may want to wait the correction out. Patience is more prudent here.
We previously covered Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM ) in April 2024 with a Buy, reviewing how Intel's ( INTC ) foundry segment has performed against the former's market dominance in FY2023.
Our deep dive then had further bolstered our confidence in TSM's forward execution and profitability, significantly aided by the healthy balance sheet....
Taiwan Semiconductor's Price Hikes Are Here - Bullish Prospects Ahead