Unveiling 4 Analyst Insights On Taiwan Semiconductor

In the last three months, 4 analysts have published ratings on Taiwan Semiconductor TSM, offering a diverse range of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Taiwan Semiconductor, presenting an average target of $233.75, a high estimate of $250.00, and a low estimate of $210.00. Surpassing the previous average price target of $230.00, the current average has increased by 1.63%.

Interpreting Analyst Ratings: A Closer Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive Taiwan Semiconductor. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Taiwan Semiconductor. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Taiwan Semiconductor compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Taiwan Semiconductor's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Taiwan Semiconductor's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Taiwan Semiconductor analyst ratings.

Get to Know Taiwan Semiconductor Better

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 U.S. 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: A Financial Overview

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Positive Revenue Trend: Examining Taiwan Semiconductor's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 38.95% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Taiwan Semiconductor's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 42.81% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Taiwan Semiconductor's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 8.36%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Taiwan Semiconductor's ROA stands out, surpassing industry averages. With an impressive ROA of 5.35%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Taiwan Semiconductor's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.23.

Understanding the Relevance of Analyst Ratings

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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