Forecasting The Future: 4 Analyst Projections For Taiwan Semiconductor

In the preceding three months, 4 analysts have released ratings for Taiwan Semiconductor TSM, presenting a wide array of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $233.75, along with a high estimate of $255.00 and a low estimate of $215.00. This upward trend is apparent, with the current average reflecting a 6.25% increase from the previous average price target of $220.00.

Understanding Analyst Ratings: A Comprehensive Breakdown

A comprehensive examination of how financial experts perceive Taiwan Semiconductor is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Taiwan Semiconductor. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Taiwan Semiconductor compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Taiwan Semiconductor's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Taiwan Semiconductor's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Taiwan Semiconductor analyst ratings.

Unveiling the Story Behind Taiwan Semiconductor

Taiwan Semiconductor Manufacturing Co. is the world's largest dedicated chip foundry, with over 60% market share. TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public as an ADR in the us in 1997. TSMC's scale and high-quality technology allow the firm to generate solid operating margins, even in the highly competitive foundry business. Furthermore, the shift to the fabless business model has created tailwinds for TSMC. The foundry leader has an illustrious customer base, including Apple, AMD, and Nvidia, that looks to apply cutting-edge process technologies to its semiconductor designs. TSMC employs more than 73,000 people.

Taiwan Semiconductor's Financial Performance

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Over the 3 months period, Taiwan Semiconductor showcased positive performance, achieving a revenue growth rate of 38.95% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 42.81%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Taiwan Semiconductor's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 8.36% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Taiwan Semiconductor's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.35% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Taiwan Semiconductor's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.01.

The Significance of Analyst Ratings Explained

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.