Taiwan Semiconductor: Time to Buy After Strong NVIDIA Results?

Core Viewpoint - The interconnections within the semiconductor industry, particularly between NVIDIA and Taiwan Semiconductor Manufacturing (TSM), highlight potential investment opportunities for TSM as it benefits from NVIDIA's success and the overall market dynamics [2][4][6]. Group 1: Company Performance and Market Position - Taiwan Semiconductor Manufacturing (TSM) is currently priced at $194.85, with a 52-week range of $133.57 to $226.40 and a dividend yield of 1.11% [2]. - TSM is expected to see a price target of $212.00, indicating a potential upside of 7.55% based on analyst ratings [9]. - The company commands a price-to-book (P/B) ratio of 9.1x, which is higher than the computer sector's average of 6.8x, reflecting its superior earnings growth and market share [14]. Group 2: Earnings and Growth Projections - Analysts project TSM's earnings per share (EPS) to reach $2.65 by Q4 2025, up from the current EPS of $2.12, suggesting a positive correlation between EPS growth and stock price [13]. - Recent earnings results from NVIDIA, which reported a double beat in revenues and earnings, have positively influenced investor sentiment towards the semiconductor sector, including TSM [3][7]. Group 3: Investment Trends and Sentiment - Institutional investors, such as Silicon Valley Capital Partners, have recently opened new positions in TSM, indicating renewed interest and potential for upside exposure [8]. - TSM's stock short interest has decreased by 5.8% over the past month, suggesting a shift towards bullish sentiment among investors [10]. - A rally of up to 20% in TSM's stock price may have prompted fears among short sellers, further supporting a bullish outlook for the company [11].