2024-04-18 14:30:22 ET
Summary
- Taiwan Semiconductor is back in growth mode, with 12.9% sales growth and expectations to reach 20% growth rates in the next few years.
- The foundry company's growth is being held back by smartphone revenues, but the HPC business is growing and the IoT and Automotive sectors are expected to improve.
- TSMC stock is down due to a downgrade in semiconductor growth, but the company maintains robust growth estimates and has limited competition in the HPC segment.
- TSM shares are cheap again at only 17x '25 EPS targets with growth rates in excess of 20%.
Taiwan Semiconductor Manufacturing Company Limited ( TSM ), aka TSMC, has slumped as the market enthusiasm for AI chips fizzles in the short term. The company foresees 20% growth rates long into the future, making the stock a value play here on dips. My investment thesis remains bullish on the chip company with strong growth prospects ahead....
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Taiwan Semiconductor Stock: Still Riding AI Boom With Strong Guidance