#1 - Taiwan Semiconductor Manufacturing (NYSE:TSM)
Artificial intelligence (AI) is a transformative technology that will impact virtually every sector of the economy. And that means semiconductor chips—and the companies that supply them—will be in high demand.
Taiwan Semiconductor Manufacturing (NYSE: TSM) is one of the leaders in the category, producing approximately 64% of all chips manufactured in Q3 2024. As the go-to supplier for cutting-edge AI chips, TSM is poised for sustained demand as businesses race to expand their AI infrastructure.
Despite its dominant position, Taiwan Semiconductor stock traded at a forward price-to-earnings (P/E) ratio of around 20x. That is significantly below the consensus 27x P/E for the sector, making it an attractive value play.
That value does come with some risk. Taiwan continues to be part of a geopolitical conflict with China over its sovereignty. However, Taiwan Semiconductor is taking steps to diversify its supply chain, including building foundries in the United States.
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.
More about Taiwan Semiconductor Manufacturing- Current Price
- $180.10
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 4 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $220.00 (22.2% Upside)
