Analysts do not seem worried about Taiwan Semiconductor Manufacturing Company Ltd's TSM share slump that wiped off $100 billion in value, Bloomberg reports.
Analysts see the stock as a screaming buy. According to Bloomberg's analyst compilation, TSMC shares will likely climb ~50% to a record high in 12 months as macro headwinds ease and investors focus on the company's fundamentals.
Fund managers also look positive, further aided by Chair Mark Liu's recent 30% revenue growth forecast this year.
TSMC dominates the global technology supply chain as the most advanced maker of chips for giants from Apple Inc AAPL to Nvidia Corp NVDA.
Alex Huang, manager of Capital Hi-Tech Fund in Taipei, sees recovery in the second half following ease in inflationary concerns and the Ukraine war.
The most liquid $475 billion company accounts for ~27% of Taiwan's entire equity market value, making it an easy selling target for some foreign investors, Huang added.
Bernstein analysts forecasted share gain and uninterrupted growth in 2022, 2023, and 2024 from robust pricing.
JPMorgan analysts believed TSMC stock already factored in a downturn, maintaining a Buy rating. However, the extent of potential downside to 2023 estimates was still unclear as per the firm.
Morgan Stanley analysts saw the current nervousness in the market as an excellent opportunity to buy TSMC, whose future looked secure.
Price Action: TSM shares traded higher by 0.72% at $91.50 in the premarket on the last check Friday.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.