TSM’s Q3 Results Were Greatĭespite the ongoing global crises endangering the company, TSM’s latest results demonstrated the critical nature of its semiconductors, which continued to attract growing demand. ![]() ![]() These traits make it a truly unique player in the industry whose qualities offer a relatively greater margin of safety versus that of its peers when the overall industry comes under pressure. It is also the prime manufacturing partner of other fundamental companies, including AMD ( NASDAQ: AMD), Broadcom ( NASDAQ: AVGO), and Qualcomm ( NASDAQ: QCOM). The company’s moat is huge as well, as its circuit structures are developed with each customer’s demand in mind, which means that TSM’s semiconductors have become essential for multiple key corporations.įor instance, TSM is the sole supplier of Apple’s silicon processors for iPhones and Mac PCs. This is evident by the fact that last year, TSM produced 26% of the world’s total semiconductor output value (excluding memory). The company’s proprietary integrated circuit structures are critical for multiple industries to operate efficiently. That said, TSM’s qualities remain robust. Simultaneously, China’s escalating threats toward Taiwan’s sovereignty threaten the company’s operations amid a potential war conflict. With the ongoing rise in rates and concerns over an economic slowdown likely to lead to declining consumer spending, it’s only reasonable to expect that TSM’s performance could take a hit in the coming quarters. TSM shares have been under heavy pressure over the past year as the company is facing risks on multiple fronts.įirstly, as you know, the semiconductor industry is wildly cyclical. TSM Shares Have Plummeted, but Its Qualities Remain Prominent Following the stock’s steep decline, I believe TSM shares are quite attractively priced as well. Yet, its critical role in the world’s economy reminds us that TSM’s investment case remains alluring, with its most recent performance metrics surprising the market quite positively. ![]() ![]() The world’s largest specialized foundry in the semiconductor industry has lost more than half of its value over the past year as the ongoing macroeconomic turmoil and political risk attached to Taiwan’s relationship with China have spooked investors. It’s been a rough few months for shares of Taiwan Semiconductor Manufacturing Company ( NYSE: TSM).
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