Taiwan Semiconductor (TSMC) Stock Forecast While It Faces Shift in Semiconductor Market

Taiwan Semiconductor Manufacturing Company (TSMC) which is the world’s largest semiconductor foundry has taken center stage in the semiconductor market as the industry seeks to establish new manufacturing capacity in geographically diverse regions . In late 2022 TSMC began production of a new generation of advanced semiconductor chips after expanding its capacity at its Taiwanese factory . The company is also constructing additional facility in Taiwan, Japan and Arizona in the United States . Let’s learn more details about it before touching the TSM stock forecast . 


TSMC Stock Rebounds but Remains Volatile

Despite rebounding from its 52-week low in November TSMC’s stock price is still down roughly 42% over the past year and reflects the bearish sentiment surrounding technology stocks . The decline can be attributed to the pressures faced by technology stocks in the market . While TSMC has experienced a strong demand cycle for its semiconductors in various applications oversupply in the market and concerns of a potential economic recession have impacted the company’s share price .


TSMC’s Growth and Stock Performance

TSMC was the world’s first dedicated semiconductor chip foundry when it was established in 1987 and has since become one of Taiwan’s largest companies . The company produces chips for prominent brands such as AMD, Nvidia, Broadcom and Apple as well as companies that produce their own chips like Intel, NXP and Texas Instruments . TSMC’s stock price reached record highs in January 2022 which was driven by strong demand and supply chain constraints . However economic slowdowns and supply chain imbalances in 2022 affected the company’s stock performance .

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Analysts’ Predictions and Outlook

Analysts have provided various predictions for TSMC’s stock performance . The average 12-month price target for TSMC’s US shares among Wall Street analysts is $116 .57 with estimates that range  from $75 to $170 . Singapore-based OCBC estimated the fair value of TSMC’s NYSE-listed stock at $118 and cited the company’s resilience amid inventory glut and end-demand weakening . Daiwa Capital Markets reiterated their buy rating for TSMC’s Taiwan-listed stock with a share price forecast showing  a potential upside of 40 .4% . J .P . Morgan’s analysts have a similar forecast of NT$650 per share for TSMC’s Taiwan-listed stock accounting for the semiconductor industry’s current downturn cycle .


Considerations for Investors

When considering investing in or trading TSMC’s shares based on these forecasts it is essential to do thorough research and analysis . Financial markets are highly volatile and analysts’ predictions can be incorrect . It is fundamental for investors to examine market trends, news, technical and fundamental analysis and expert opinions before making any investment decisions . Past performance does not guarantee future returns and it is crucial to only invest funds that one can afford to lose out .

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Content Editor/ Writer Hello, my name is Winfried Krantz and I am a banking analyst and finance journalist with expertise in economics, finance, and cryptocurrency. With over 10 years of experience in the industry, I have a deep understanding of how these fields interact and influence each other. I received my BSc in Finance, Accounting, and Management from the University of Nottingham, where I honed my skills in financial analysis and reporting. Since then, I have worked with a number of leading publications, sharing my insights and helping readers stay up-to-date with the latest trends and developments in the world of finance.
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