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TSMC - AI Stock Analysis
Analysis generated December 8, 2024
Taiwan Semiconductor Manufacturing Company Limited (TSMC) is the world's largest dedicated independent semiconductor foundry. Founded in 1987, it is headquartered in Hsinchu, Taiwan. TSMC manufactures chips designed by major technology companies and has a considerable share of the global semiconductor market, making it a cornerstone of the electronics industry. The company is pivotal in supplying leading-edge technology and has partnerships with many leading-edge technology designers.
Fundamental Analysis
Revenue: TSMC's revenue for the last quarter was NT$760 billion. This represents a 12.80% increase compared to the previous quarter, illustrating short-term growth. Year-over-year growth is impressive at 38.95%, reaffirming consistent long-term expansion.
Net Income: The reported net income for the last quarter was NT$325 billion, a substantial increase of 31.23% compared to the previous quarter. Year-over-year, net income soared by 54.15%, indicating an excellent profitability trajectory.
EBITDA: TSMC's EBITDA for the last quarter was NT$361 billion. While this represents a worrying 20.36% decrease compared to the previous quarter, the year-over-year increase of 58.19% does signal strong operational efficiency and capacity expansion.
P/E Ratio: The current P/E ratio stands at 32.48. A high P/E ratio can often indicate an overvalued stock, potentially suggesting investor over-optimism or a strong future growth outlook.
Technical Analysis
Current Stock Price: TSMC's stock price today is US$203.02. This reflects a modest but positive increase of 0.90% over the last month.
Yearly Price Change: Over the past year, the stock price has surged by 105.47%, underscoring a robust long-term bullish trend.
Short-Term Moving Average (SMA10): The current SMA10 is 196.13, showing an upward trend from the previous 193.95, which can indicate potential price momentum.
Relative Strength Index (RSI): The RSI is at 62.8. Generally, an RSI between 30 and 70 indicates neutral market sentiment, suggesting that the stock is neither overbought nor oversold.
Alternative Data Analysis
Job Postings and Employee Sentiment: TSMC has 547 open positions, indicating a 37% increase in the last few months. This expansion signals company growth. Employee sentiment remains neutral, reflecting a balanced view of the firm's internal environment.
Customer Acquisition: The estimated number of visitors to TSMC's webpage is 1.2 million, with a notable 20% increase in recent months, signifying growing interest and potential customer base expansion.
Customer Engagement: TSMC has 9,900 Twitter followers, up by 13% in the last few months. This rising follower count points to increasing public interest and engagement.
AI Score: AltIndex’s AI score for TSMC is 65. An AI score above 60 generally indicates a buy signal, combining fundamental, technical, and alternative data into a favorable outlook.
Conclusion and Recommendation
Considering TSMC’s robust revenue and net income growth, strong long-term stock performance, and favorable alternative data indicators, the overall outlook for TSMC appears positive. Despite the high P/E ratio and the short-term EBITDA decrease, the company's fundamental strengths and technical signals, coupled with the bullish alternative data analysis, suggest that TSMC presents a compelling investment opportunity.
TSMC should be considered as a potential buy for investors seeking exposure to a pioneering leader in the semiconductor industry, backed by strong financial performance and promising growth potential.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
