The economic slowdown and rising interest rates over the past few years have weighed down corporate earnings. And yet, the always resilient market is on the mend. Inevitably, some fundamentally sound stocks are experiencing drops in share prices, mainly due to the overarching market downtrend.
Today we’ll focus on an industry leader facing short-term headwinds and offering an undeniable entry for investors seeking robust growth.
Taiwan Semiconductor (TSM)
Today, we delve into the world of tech, focusing on Taiwan Semiconductor, the leading semiconductor foundry in the global landscape.
TSM serves as a powerful manufacturing ally, especially in the realm of fabless semiconductors. While its recent earnings outlook appears cautious due to a slowdown in consumer electronics, an exciting prospect lies ahead. The surge of investment in AI is expected to offset any short-term weakness in the upcoming quarters.
Moreover, from a broader perspective, the demand for chips is on the rise, permeating industries like connected cars, home appliances, and other innovative fields. TSM, with its forward revenue and EBIT estimates standing at an impressive 12.3% and 14%, respectively, continues to dominate a significant portion of this expanding market. Surprisingly, its stock trades at just seven times forward sales estimates, nearly 93% lower than its 5-year average. Additionally, it boasts a tempting yield of 1.8%, which is approximately 13% higher than the sector median.
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Read Next – Elon Musk’s Warp-speed technology set to spark windfalls
Elon Musk just flipped the switch on a radical new technology…
One that has nothing to do with Tesla, Starlink, SpaceX or Neuralink.
The Bank of America says this tech could ignite $15.7 trillion in new wealth…
And there are 3 steps anybody can take to get a slice of that multi-trillion dollar pie…
But you have to take them fast…
Because Musk’s new tech is growing at warp-speed.
It’s being adopted 42 times faster than the internet…
Meaning, people are jumping on it extremely fast…
So if you wait too long, it might be impossible to get in.
