tsm

Taiwan Semiconductor Manufacturing Company Limited (TSMC) is a Taiwanese multinational semiconductor contract manufacturing and design company. It is the world's second-most valuable semiconductor company, the largest dedicated independent ("pure-play") semiconductor foundry, and its country's largest company. Here's a detailed analysis:

1. Financial Performance:
   • TSMC's net income was US$27.67 billion in 2023, and its revenue was US$71.28 billion in the same year.
   • The company's operating income was US$36.49 billion in 2022, which indicates a strong operational efficiency.
2. Stock Performance and Analyst Ratings:
   • The stock has a consensus rating of "Strong Buy" with an average price target of $186.57.
   • The stock's 52-week range is $83.23 to $193.47, and it had a recent close of $187.35.
3. Fundamental Ratios:
   • TSMC's P/E ratio is 35.7, which is relatively high, suggesting that investors are willing to pay a premium for the company's earnings.
   • The company's ROE is not available, but its net income and equity figures suggest it is likely to be strong.
4. Revenue Growth and Market Position:
   • TSMC has a history of compound annual growth rates (CAGR) of 17.4% in revenue and 16.1% in earnings.
   • The company serves a global market and is a key partner for many leading tech companies, including Apple, AMD, and Nvidia.
5. Cash Flow and Valuation:
   • TSMC's free cash flow is not available, but its strong revenue growth and profitability suggest it likely generates significant cash flows.
   • The P/B ratio is 0.26, and the P/S ratio is 0.42, both of which are lower than the industry average, potentially indicating an undervaluation.
6. Market Sentiment and Future Outlook:
   • The net fund flow for TSMC was -$74.52 million as of July 12, 2024, which could indicate some selling pressure but also the potential for a rebound.
   • TSMC is expected to report a 30% rise in second-quarter profit due to surging demand for AI chips, which could be a catalyst for the stock's performance.

In conclusion, TSMC is a strong company with a solid financial position, a clear market leadership, and a promising future driven by the growing demand for semiconductors, especially in the AI and data center sectors. However, investors should monitor the stock's valuation relative to its growth prospects and the broader market conditions.