Taiwan Semiconductor Manufacturing Co.’s (TSMC) market value has dropped by about $100 billion this year due to a drop in share prices. However, many analysts still think the company is a great buy.
Sell-side analyst predictions gathered by Bloomberg show that TSMC shares are likely to rise almost 50 percent to a record high in the next 12 months as macro headwinds that have been affecting the sector weaken and investors shift their focus to the company’s fundamentals.
Fund managers are also starting to see that the fall is coming to an end. This case adds to Chairman Mark Liu’s prediction on Wednesday that revenue will grow by 30% this year.
Even though TSMC has lost more than a tenth of the value of its shares, the drop is not as big as the drop seen in the worldwide semiconductor benchmark index in 2022. As the most advanced company that makes chips for companies like Apple Inc. and Nvidia Corp., the company has a strong position in the global supply chain for technology.
Some overseas investors find it easy to sell their shares at TSMC, since it is the biggest and most liquid company on Taiwan’s stock market.
As Huang has said, about 27% of the total value of Taiwan’s stock market is made up by the $475 billion company.
Many people worry about a cyclical correction, but Sanford C. Bernstein analysts, including Mark Li, wrote in a note earlier this month that they expect share growth and strong pricing to keep TSMC growing this year and in 2023 and 2024 as well.
Bloomberg put together the advice of 37 analysts. Of the 37, 34 are buys, 3 are holds, and none are sells. The average price estimate for the next 12 months is NT $816.75, while the last price on Thursday was NT $541.
