TSM - TSMC Is A Stellar Bargain Buy The Fear
2024-07-20 02:12:19 ET
Summary
- Chip companies have experienced significant selling pressure in the last couple of days.
- Nonetheless, TSMC reported strong financial results for Q2'24, driven by AI demand, especially in the HPC segment.
- TSMC also submitted a strong outlook for Q3'24, in terms of both revenues and gross margins, indicating that the demand situation for semiconductors is very robust.
- Investors have a unique buying opportunity in chip stocks. TSMC has the lowest forward P/E ratio in the industry group.
Chip companies have seen massive selling pressure in the last several days with names like Nvidia ( NVDA ), AMD ( AMD ), Broadcom ( AVGO ) and Taiwan Semiconductor Manufacturing ( TSM ). However, TSMC reported strong financial results for its last quarter on Thursday which were overshadowed by the ensuing sell-off in the chip sector. TSMC benefited from ramping AI demand, with its revenues soaring 32.8% Y/Y and the company reporting gross margins that came in ahead of guidance. Given the recent sell-off in chip stocks, I believe investors have a unique opportunity to be greedy here and scoop up shares in a company that benefits immensely from the AI-driven spending boom in the semiconductor industry!...
TSMC Is A Stellar Bargain, Buy The Fear