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Taiwan Semiconductor Stock: Own It, Don't Trade It
TSMCTSMC(US:TSM) MarketBeatยท2025-08-11 20:44

Core Viewpoint - Taiwan Semiconductor Manufacturing (TSM) is positioned as a long-term investment opportunity due to its significant market presence and upcoming expansion in the U.S. semiconductor manufacturing sector, driven by new trade tariffs [2][3][5]. Company Overview - TSM has a current stock price of $241.98, with a 52-week range of $134.25 to $248.28 and a dividend yield of 1.02% [2]. - The company has a market value of approximately $1 trillion and a P/E ratio of 27.59, which is lower than the computer sector's average of 50.3 [3][10]. Investment Thesis - The stock is recommended for long-term accumulation, with a price target of $258.33, indicating a potential upside of 6.76% from the current price [11]. - The anticipated increase in tariffs on semiconductors, potentially reaching 200% by 2027, provides a timeline for TSM to enhance its manufacturing capacity in the U.S. [5][12]. Market Position and Performance - TSM is a dominant player in the semiconductor industry, supplying major companies like NVIDIA and Apple [6][7]. - Recent quarterly earnings reported an EPS of $2.47, surpassing the Wall Street consensus of $2.13, suggesting that analysts may be undervaluing the company [13]. Analyst Sentiment - Despite some institutional investors reducing their positions, this is not necessarily a bearish signal but rather a portfolio management strategy [8][9]. - TSM is currently rated as a "Buy" among analysts, although some top-rated analysts have identified other stocks as better buys [15][16].