If there really is a “new industrial revolution” underway, then investors will want to buy Taiwan Semiconductor Manufacturing (NYSE: TSM ) now. This is the top picks-and-shovels play for AI chip stocks and it offers a compelling growth opportunity.
Taiwan Semiconductor pays out a little more than a third of earnings as a dividend, yielding 1.05% today. While growth was mild in 2023, the dividend is poised to grow 20% this year.
The demand for TSMC's chip manufacturing capabilities is increasing as more chipmakers are looking to cash in on the AI boom. Stronger earnings growth and healthy spending on AI chips over the next decade are going to be tailwinds for this foundry giant.
In the closing of the recent trading day, TSMC (TSM) stood at $173.96, denoting a -0.81% change from the preceding trading day.
TSMC (TSM) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Taiwan Semiconductor makes chips for Nvidia and a host of other tech giants. Business has been booming thanks to the artificial intelligence revolution.
Taiwan Semi is a key supplier to many companies in the AI value chain. The latest Apple announcement has huge implications for the chipmaker.
TSMC reached a new 1-year high on optimism for consistent top line growth. Market share gains and record Q1 results drive revenue growth. The firm's free cash flows are growing significantly faster than revenues, which in turn translates to significant potential for EPS estimate upside revisions.
With advanced semiconductors providing the computing power that fuels the ongoing artificial intelligence (AI) boom, it is hardly strange that some of the most important names in the industry witnessed massive stock market moves in recent months.
The author maintains a "strong buy" rating for TSMC, with a current price target of $231.78 (31.5% upside) and a 2029 target of $400.85 (31.5% annual returns). TSMC's Q1 2024 earnings were $1.38 per share, beating estimates by 4.51%, with revenues of $18.87 billion, exceeding forecasts by 4.77%. TSMC aims to expand and innovate its manufacturing processes, holding a 61% market share, significantly ahead of competitors like Samsung (11.3%).
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
TSMC (TSM) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.