What TSMC Tells Us About the State of the Chip Industry
Taiwan Semiconductor Manufacturing (NYSE: TSM), better known as TSMC, delivered strong earnings in its second-quarter report released last week. Slowing consumer spending and the cyclical nature of the semiconductor industry led to fears that demand would slow for the Taiwan-based chip manufacturer.
While the company pointed to some areas of slowing activity, the fears appear overblown, indicating that investors might want to consider TSMC stock amid this uncertainty.
In an environment of inflation and recession concerns, investors fear the bearishness will take the chip sector from its massive shortage into a possible surplus. Admittedly, cyclicality has defined the chip sector for decades, and with new capacity coming on line, the shortage appears to have become less severe in recent months.
Source Fool.com
