Why You Should Consider Buying the Dip in Taiwan Semiconductor Manufacturing
StockNews
Published Apr 28, 2021 09:56AM ET
Updated Apr 28, 2021 10:31AM ET
Why You Should Consider Buying the Dip in Taiwan Semiconductor Manufacturing
Taiwan Semiconductor’s (TSM) stock has lost some value since mid-February 2021 as part of a broader tech sell-off. But the company reported solid financials in its last-reported quarter and is also seeing increasing demand for its chips. Because the stock is expected to rebound in the near- to mid-term, we think it could be wise to buy the stock at its current price level. Let’s discuss.Founded in 1987 and is based in Hsinchu, Taiwan, Taiwan Semiconductor Manufacturing Company Limited’s (TSM) was the world’s first semiconductor foundry. Its share price has declined 13.4% amid a broader tech sell-off since hitting its all-time high of $142.20 on February 16.
However, it has gained 126.6% over the past year to close yesterday’s trading session at $121.27. This can be attributed primarily to increasing demand for its integrated circuits (ICs) and semiconductor products.
Established tech companies like Apple Inc. (NASDAQ:AAPL), Advanced Micro Devices Inc. (NASDAQ:AMD), NVIDIA Corp. (NASDAQ:NVDA) and QUALCOMM Incorporated (NASDAQ:QCOM) rely on TSM for their semiconductor supplies. And, as the world experiences a semiconductor shortage, TSM is ramping up its production to meet the market demand.
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