Taiwan Semiconductor (TSMC) stock is a strong buy with impressive growth and solid profitability

From Nasdaq: 2024-12-06 04:10:00

Taiwan Semiconductor (NYSE: TSM) is a key player in the tech supply chain, producing over half of the world’s third-party chips and 90% of advanced chips. With a market cap of $1 trillion, TSMC is essential to companies like Apple, Nvidia, and AMD.

TSMC’s recent results show impressive growth, with a 39% revenue jump to $23.5 billion in the third quarter. The company’s profit margin sits at 43%, and its revenue from advanced chips is rapidly growing, reaching 69% for technologies like 7-nanometer wafers or less.

Despite geopolitical risks, TSMC’s stock is trading at a reasonable P/E ratio of 31, making it an attractive investment. With solid growth, profitability, and competitive advantages, Taiwan Semi looks set to benefit from the AI boom and continue its success in the semiconductor industry.

Considered one of the best stocks to buy now by the Motley Fool Stock Advisor team, Taiwan Semiconductor Manufacturing offers strong growth potential. With a history of outperforming and a track record of success, TSMC could be a valuable addition to investors’ portfolios.



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