Last Updated: 14 Sep 2024
Executive Summary
Taiwan Semiconductor Manufacturing (TSM) is a global leader in the semiconductor industry, with a market capitalization of $889 billion. The company has a strong financial position, with high profitability and a solid balance sheet. Analysts are bullish on TSM's long-term prospects, with a consensus target price of $199.75.
Company Overview
TSM is the world's largest dedicated independent semiconductor foundry. The company provides a wide range of semiconductor manufacturing services, including design, fabrication, assembly, and testing. TSM's customers include leading companies in the electronics industry, such as Apple, Qualcomm, and Nvidia.
Fundamental Analysis
TSM's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 15% over the past five years. TSM's profitability has also improved, with its operating margin increasing from 35% in 2017 to 42.5% in 2023.
TSM's balance sheet is also strong. The company has a low level of debt and a high level of cash and equivalents. TSM's financial strength gives it the flexibility to invest in new technologies and expand its operations.
Technical Analysis
TSM's stock price has been trending higher in recent months. The stock is currently trading above its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is also above 50, which indicates that the stock is in a bullish trend.
Short Term Outlook
In the short term, TSM's stock price is likely to continue to trend higher. The company's strong financial performance and positive analyst sentiment are likely to support the stock price. However, the stock price could be volatile in the short term due to macroeconomic factors, such as the ongoing trade war between the United States and China.
Long Term Outlook
In the long term, TSM's stock price is likely to continue to grow. The company is a leader in the semiconductor industry, and it is well-positioned to benefit from the growing demand for semiconductors. TSM's strong financial position and its commitment to innovation give it a competitive advantage over its rivals.
Analyst Recommendations
Analysts are bullish on TSM's long-term prospects. The consensus target price for TSM is $199.75, which represents a potential upside of 15.8% from the current price. Eight analysts have a "Strong Buy" rating on TSM, seven have a "Buy" rating, one has a "Hold" rating, and none have a "Sell" or "Strong Sell" rating.
