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TSM Stock Forecast: Sustainable Growth Within Geopolitical and Macroeconomic Volatility

This TSM Stock Forecast article was written by the I Know First Research Team.

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This TSM Stock Forecast article was written by Yuwei Zhou – Financial Analyst at I Know First.

TSM’s revenue has risen by 43.53% since Q2 2021
TSM will construct and operate a fab that utilizes 12/16- and 22/28-nanometer technology to address strong global market demand
The company is constructing a $12 billion plant in the U.S. state of Arizona to save the world-wide chip shortage
Outperforming profitability and liquidity with an undervalued price

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Investment Selection Using AI Predictive Algorithm
July 13, 2020

The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.

The new sanctions against Huawei means Taiwan Semiconductor was forced to stopped taking new foundry orders from it.
This is a near-term headwind. Huawei is the no. 2 largest foundry customer of Taiwan Semiconductor. Huawei accounts for 15% to 20% of Taiwan Semiconductor’s revenue.
TSM is still a buy because other Chinese phone vendors like Xiaomi, Oppo, and Lenovo can eventually make up for the lost business from Huawei.
• TSM also touts lower valuation ratios than its foundry customers Advanced Micro Devices and Nvidia. This is just wrong because TSM operates on a higher net income margin.
Taiwan Semiconductor boasts an excellent balance sheet. Its total cash is $18.86 billion while its total debt is only $7.3 billion.

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The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.

Taiwan Semiconductor Manufacturing Company’s stock has a 1-year price return of more than 38%.
I’m still endorsing TSM as a buy. The recent out of court settlement with GlobalFoundries insured that chip foundry customers of Taiwan Semiconductor have nothing to worry about.
Smartphone sales are peaking but stronger PC shipments is a tailwind for Taiwan Semiconductor.
The absence of competition from GlobalFoundries is a tailwind for TSM.
Next year’s rollout of 5-nm process will increase TSM’s chip manufacturing lead over Intel and Samsung.