Positive.

From Nasdaq: 2024-09-10 10:36:02

Nvidia’s recent share price drop has impacted AI stocks, raising concerns about the industry’s hypergrowth phase. However, data shows strong demand in the semiconductor industry, with sales up 18.7% year over year and global sales expected to reach $588 billion by 2024, indicating a potential buying opportunity for investors.

Despite the market volatility, Taiwan Semiconductor (TSM) remains a key player in chip manufacturing, holding a dominant market position with a 61.7% share. TSM’s expertise in advanced nodes like 3nm and 5nm chips positions it well to serve tech giants like Nvidia and Apple, while plans for 1.6-nanometer chips by 2026 show their commitment to industry leadership.

TSM’s solid fundamentals, operational prowess, and strategic investments in advanced technology make it a strong contender in the semiconductor market. With continuous growth in revenues and earnings, topped with a healthy balance sheet, analysts rate TSM stock as a “Strong Buy” with a mean target price of $204.71, signaling a potential upside of 25.7% from current levels.



Read more at Nasdaq: 1 AI Semiconductor Stock to Buy and Hold for the Long Term