Is It Time to Buy the Dip on Taiwan Semiconductor?
When companies take a tumble after an earnings report, it allows investors to assess whether the issue is a short-term problem or a long-term hurdle. If you have a long-term mindset, you can use short-term pessimism to your advantage and make some fantastic investments at a slightly lower price by going against the grain.
Taiwan Semiconductor (NYSE: TSM) recently reported its first-quarter results, which were met with a 6% sell-off during the trading day after they became available. While this wasn't as violent a sell-off as some companies experience, it's still noteworthy and could give investors a chance to get in on a stock that has seen its price rise substantially thanks to its involvement with artificial intelligence (AI) chips.
Taiwan Semiconductor (TSMC for short) is the world's largest contract chip manufacturer. This means it doesn't make its chips to compete against other chipmakers. Instead, it uses its facilities to produce chips for companies like Apple and Nvidia, which design their own chips but don't have the equipment to manufacture them.
Source Fool.com
