When is it a good time to purchase TSM?

**Taiwan Semiconductor Manufacturing (TSM) presents a promising investment opportunity**, and the following points suggest favorable conditions for purchasing TSM stock: 1. **Strong Financial Performance**: TSM has demonstrated robust growth in net income and revenue, with a net income of $11.42 billion and total revenue of $26.49 billion. The company's diluted EPS has also seen a significant year-over-year growth of 46.51%. |code|Ticker|Name|Date|Net Income YoY|market_code| |---|---|---|---|---|---| |TSM|TSM.N|TSMC|2024 Q1|3.8871955633269124|169| |TSM|TSM.N|TSMC|2024 Q2|30.787633690488313|169| |TSM|TSM.N|TSMC|2024 Q3|57.09087899900334|169| |TSM|TSM.N|TSMC|2024 Q4|46.73808408104411|169| |code|Ticker|Name|Date|Total Revenue YoY|market_code| |---|---|---|---|---|---| |TSM|TSM.N|TSMC|2024 Q1|11.22580799759517|169| |TSM|TSM.N|TSMC|2024 Q2|34.41455732149009|169| |TSM|TSM.N|TSMC|2024 Q3|41.54153475216974|169| |TSM|TSM.N|TSMC|2024 Q4|29.64824565273266|169| |code|Ticker|Name|Date|Diluted EPS YoY|market_code| |---|---|---|---|---|---| |TSM|TSM.N|TSMC|2024 Q1|4.0716408772263|169| |TSM|TSM.N|TSMC|2024 Q2|30.87109585673914|169| |TSM|TSM.N|TSMC|2024 Q3|56.925851198511964|169| |TSM|TSM.N|TSMC|2024 Q4|46.51159276854591|169| |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |TSM|TSM.N|TSMC|2024 Q1|3.8871955633269124|7.05359437747813E9|169| |TSM|TSM.N|TSMC|2024 Q2|30.787633690488313|7.63209337672832E9|169| |TSM|TSM.N|TSMC|2024 Q3|57.09087899900334|1.02710965176486E10|169| |TSM|TSM.N|TSMC|2024 Q4|46.73808408104411|1.14202185399E10|169| |code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code| |---|---|---|---|---|---|---| |TSM|TSM.N|TSMC|2024 Q1|11.22580799759517|1.856073333546051E10|169| |TSM|TSM.N|TSMC|2024 Q2|34.41455732149009|2.075532066094528E10|169| |TSM|TSM.N|TSMC|2024 Q3|41.54153475216974|2.400291387952794E10|169| |TSM|TSM.N|TSMC|2024 Q4|29.64824565273266|2.64855419631E10|169| |code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code| |---|---|---|---|---|---|---| |TSM|TSM.N|TSMC|2024 Q1|4.0716408772263|0.272471037|169| |TSM|TSM.N|TSMC|2024 Q2|30.87109585673914|0.2946070784|169| |TSM|TSM.N|TSMC|2024 Q3|56.925851198511964|0.3962085732|169| |TSM|TSM.N|TSMC|2024 Q4|46.51159276854591|0.440683095|169| 2. **Positive Market Valuation Metrics**: The company's P/E ratio stands at 22.81, which is relatively high but suggests strong investor confidence. The P/S ratio of 9.29 indicates that the market is willing to pay a premium for TSM's sales. |code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code| |---|---|---|---|---|---|---|---| |TSM|TSM.N|TSMC|20240417|26.867175|0|6.942884650819362|169| |TSM|TSM.N|TSMC|20240418|25.560823|0|6.124915388929892|169| |TSM|TSM.N|TSMC|20240419|24.677683|0|5.913296251352137|169| |TSM|TSM.N|TSMC|20240422|25.07384|0|6.008223873241501|169| |TSM|TSM.N|TSMC|20240423|25.78499|0|6.178630531072167|169| |TSM|TSM.N|TSMC|20240424|25.696097|0|6.157329698843333|169| |TSM|TSM.N|TSMC|20240425|26.393719|0|6.324494925682655|169| |TSM|TSM.N|TSMC|20240426|26.726105|0|6.404141515755682|169| |TSM|TSM.N|TSMC|20240429|26.764754|0|6.413402747159521|169| |TSM|TSM.N|TSMC|20240430|26.540587|0|6.359687605017248|169| 3. **Technical Indicators**: TSM's stock is currently in oversold territory according to the RSI indicator, with an RSI reading of 25.8. This could suggest that the recent heavy selling pressure is nearing exhaustion, potentially paving the way for a price rebound. 4. **Strategic Partnerships and Investments**: TSM's strategic partnership with Intel and its significant investment in AI-driven revenue growth indicate a forward-looking growth potential. The company is projecting a 40% CAGR in AI-driven revenue over the next five years, with substantial capital investments planned. 5. **Analyst Ratings and Targets**: The consensus rating from analysts is a "Strong Buy" with an average price target of $240, which represents a significant upside from the current price of $151.67. 6. **Dividend Yield**: TSM offers a dividend yield of 1.74% based on the recent share price, providing an additional layer of return for income-focused investors. 7. **Market Position and Growth Prospects**: TSM's leadership in the AI chip production industry and its expansion plans, including a $100 billion investment in U.S. production facilities, position it well for continued growth. In conclusion, considering TSM's strong financials, positive market sentiment, strategic partnerships, and growth projections, the current oversold condition and potential for future price appreciation make it a good time to consider purchasing TSM stock. Investors should monitor the company's performance closely, especially the realization of growth projections in AI and HPC segments.