Taiwan Semiconductor Stock Faces a Reckoning
Taiwan Semiconductor Manufacturing (NYSE: TSM) is the overwhelming leader in the semiconductor foundry industry, and that's not going to change anytime soon. The company scored a market share of 55.5% in 2022, more than triple that of No. 2 Samsung. The company has undisputed leadership in manufacturing technology, meaning that companies like Apple, Nvidia, and Advanced Micro Devices have no real alternatives.
While TSMC stock is below its pandemic-era high, shares of the semiconductor manufacturing giant still trade well above pre-pandemic levels. The company is worth nearly half a trillion dollars, making it one of the most valuable semiconductor companies in the world. While TSMC's dominant market share and manufacturing edge yield major competitive advantages, the company is facing two headwinds -- one short-term and one long-term -- that could derail the stock.
The semiconductor industry was plagued with shortages during the pandemic, but the situation has now reversed. A combination of elevated inventories across multiple industries and weak demand for PCs, smartphones, and other devices is expected to push global semiconductor foundry revenue down 6.5% in 2023, according to IDC.
Source Fool.com
Taiwan Semiconductor Manufacturing Co. Ltd. ADR Stock
The stock is one of the favorites of our community with 25 Buy predictions and 1 Sell predictions.
With a target price of 173 € there is a slightly positive potential of 11.33% for Taiwan Semiconductor Manufacturing Co. Ltd. ADR compared to the current price of 155.4 €.
