TSM Stock Forecast: Stock surges 13% after Warren Buffet’s stake
TSM Stock Forecast: Berkshire Hathaway (a company led by Warren Buffet) announced a major stake of around $4.1 billion of stock (60.1 million shares) in TSM. TSM has not been performing well and it also reached $60.28, the lowest in two years due to the decreasing demand in the chip industry, but this news led the stock to rally by around 13%
TSM Stock Forecast: Price today
|Market cap||$408.9 billion|
|1-year target estimation||$81.5|
TSM Stock Forecast: Recent Performance
|Stock name||5 days||1 month||YTD|
TSM Stock Forecast: Latest News
- Taiwan proposed tax breaks: Taiwan’s economic minister Wang-Mei Hua recently proposed tax breaks or tax reductions for the research and development costs of various companies. This move is aimed to stay ahead in the semiconductor industry. He said that Taiwan must continue to research and develop in this global situation and told that the benefits of tax breaks would dominate the reduction in tax revenues. TSM shares increased after this positive news for the industry.
- Warren Buffet’s stake in TSM: Berkshire Hathaway (a company led by Warren Buffet) announced a major stake of around $4.1 billion of stock (60.1 million shares) in TSM. TSM has not been performing well and it also reached $60.28, the lowest in two years due to the decreasing demand in the chip industry, but this news led the stock to rally by around 13%. This also led the other stocks in the semiconductor arena to surge, rekindling hope in the chipmaker industry.
- Taiwan semiconductor’s new factory in Arizona: Taiwan semiconductor is planning to start a new advanced semiconductor plant factory in Arizona, USA, which is expected to start its operations in 2024. The estimated investment in this plant is approximately $12 billion, according to the wall street journal report. It was also reported that it will manufacture the 3-nanometer transistors in this plant.
TSM Stock Forecast: Latest Video
TSM Stock Forecast: Price target
Erste Group Bank upgraded its rating to “Buy”.
Goldman Sachs has lowered their rating from “conviction-buy” to “Buy”.
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TSM Stock Forecast: Q3 Results
- TSM released its Quarter 3 (which ended on September 2022) results in November 2022.
- The company’s total revenues were declared as $19.2 billion, up 29.3% Y-o-Y.
- Its gross profit was $11.6 billion, up 52.3% Y-o-Y.
- Operating expenses increased by 26% Y-o-Y and were reported as $1.9 billion.
- The company’s operating income increased by 58.7% over a year and was reported as $9.7 billion.
- Its net income was $8.8 billion, up 57.2% Y-o-Y.
- Revenue per share was $0.74, up 20.3% Y-o-Y.
- Diluted earnings per share (EPS) were declared as $0.34, up 57.2% Y-o-Y.
- Its EBIT was declared as $30.8 billion, up 58.7% Y-o-Y.
- The P/E ratio of the company is 14.97.
TSM Stock Forecast: Conclusion
The TSM stock price increased around 14% after Warren Buffet’s investment. This indicates a positive investor sentiment but the major risk for TSM is the geopolitical tensions between China and the U.S. over Taiwan. The recent move by Warren Buffet and the talks between China and the U.S. are indicating that the geopolitical risks may reduce, even though the competition can be seen increasing, but this risk cannot end completely. The company is financially showing stellar performance with a gross profit margin of 57.3% and a continuous growth rate with solid long-term potential. This stock is a buy, but one should not ignore the risk present.
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