When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM) (TSMC) saw its total sales in August climb 24% year over year to NT$335.77 billion (New Taiwan dollar), which places the world's biggest contract chipmaker solidly ahead of plan with about 70% of expected Q3 sales booked, according to analysts at Wedbush. They noted that a weaker Taiwan dollar is benefiting TSMC sales in local currency, while also pointing out that the company in recent quarters has outperformed expectations in the first two months of the quarter before then reporting results closer to the initial guide.
In the closing of the recent trading day, TSMC (TSM) stood at $246.98, denoting a +1.47% move from the preceding trading day.
TSM outpaces peers with a 26% stock surge, boosted by AI-driven growth and record earnings, but macro risks and costs make holding the wiser play.
More news is coming out for the technology sector in the United States, as the issues of trade and tariffs are still ongoing and targeting the semiconductor industry like never before. This time, a direct impact has been made on shares of Taiwan Semiconductor Manufacturing NYSE: TSM as President Trump has restricted the company's presence and dealings with China.
The latest trading day saw TSMC (TSM) settling at $231, representing a -3.05% change from its previous close.
Zacks.com users have recently been watching TSMC (TSM) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
TSMC (TSM) concluded the recent trading session at $232.99, signifying a +2.49% move from its prior day's close.
TSMC's advanced nodes now drive 69% of revenue, with strong growth fueled by AI demand and robust capex expansion, especially in the US. TSMC maintains clear technology leadership and high yields in advanced nodes, securing top customers like Nvidia, Apple, and major cloud providers. Tariff risks are minimal due to exemptions and limited automotive exposure; US fab expansions may raise costs, but TSMC can offset with premium pricing.
Taiwan Semiconductor ramps up global fabs in the United States, Japan, and Europe, but soaring investments raise pressure on margins in 2025 and beyond.
TSMC's moat continues to be wide, as Intel's foundries future is uncertain, with no major customer for 14A yet, as 18A is only used internally. TSMC's yield and capacity is higher, as they remain a top choice for tech giants. Arizona fab still only accommodates around 7% of the US chip demand. TSMC is set to be exempt from tariffs, as macroeconomic headwinds are getting cleared up for TSMC. Management was conservative in Q2 earnings call with concerns that have been clarified.
Taiwan Semiconductor pushes nanosheet tech with N2, N2P, A16, and A14 nodes, targeting speed, power, and density gains to extend chip leadership.