#3 - Taiwan Semiconductor Manufacturing (NYSE:TSM)
Taiwan Semiconductor Manufacturing (NYSE: TSM) is a foundry that makes NVIDIA's AI chips. Its customer base also includes Advanced Micro Devices and Apple, among others. If you’re looking for a pure-play semiconductor stock, TSM is the one.
The company is projected to be a significant beneficiary of the Chips Act passed by Congress in 2022. In April 2024, the Biden administration announced plans to give Taiwan Semi $6.6 billion to help it build three foundries in Arizona.
TSM stock is up 62% in 2024 and 67% over the last 12 months. That has it butting up against its current consensus price target. However, the company’s revenue, which came in at $70 billion in 2023, is expected to climb to $100 billion in fiscal year 2025. And the stock trades at around 27x forward earnings, which means investors are not paying too high of a premium on TSM stock.
About Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides a range of wafer fabrication processes, including processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others.
Read More - Current Price
- $186.72
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 4 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $209.00 (11.9% Upside)
