3 Reasons to Buy TSMC, And 1 Reason To Sell
Taiwan Semiconductor Manufacturing Company (NYSE: TSM), the world's largest pure-play contract chipmaker, is often considered a solid investment on the semiconductor market. It's generated a total return of more than 430% over the past five years, while the S&P 500 only delivered a total return of about 120%.
TSMC's revenue rose 25% (31% in U.S. dollar terms) in 2020, while its earnings per share increased 50%. Analysts expect its revenue and earnings to rise 23% and 17%, respectively, this year as it profits from the world's insatiable appetite for new chips. Its stock has nearly doubled over the past 12 months, but it still looks reasonably valued at 27 times forward earnings.
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Source Fool.com
