Is TSMC Stock a Buy Now?
Taiwan Semiconductor Manufacturing's (NYSE: TSM) stock price jumped 6% on Jan. 12 after the world's largest contract chipmaker posted its fourth-quarter report. Its revenue rose 43% year over year to NT$625.5 billion ($19.9 billion), but missed analysts' expectations by NT$10.5 billion ($345 million) and marked its first quarterly top-line miss in two years. Its net income jumped 78% to NT$295.9 billion ($9.4 billion), or $1.82 per American Depositary Receipt (ADR), and still beat analysts' estimates by a nickel.
TSMC's headline numbers were mixed, but its stock had already declined by more than 30% over the past 12 months as investors fretted over the slowing growth of the semiconductor sector. At 15 times forward earnings, its downside potential also seemed fairly limited ahead of its Q4 report. So should investors buy TSMC's stock right now?
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