Shares of Taiwan Semiconductor Manufacturing (NYSE: TSM) were up 12.4% as of 10:19 a.m. ET on Tuesday after Warren Buffett 's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) disclosed a large stake in the chipmaker.
TSM shares have fallen sharply this year over slowing demand in the semiconductor industry, but the investment by Berkshire is a signal that the stock has reached value territory.
TSM is the leading chip manufacturer in the world. It makes chips for Nvidia , Advanced Micro Devices , Intel , among others. Its expertise in cutting-edge chip technology allows the business to generate a high operating margin close to 50%, which is rare.
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Why Taiwan Semiconductor Manufacturing Stock Jumped on Tuesday