Is TSM a buy or sell in December 2021 • Benzinga

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Taiwan Semiconductor
$ 121.70 Buy stocks

The COVID-19 pandemic has illustrated how central technology is to everyday life. The semiconductor chip, an important part of today’s technology, is a key part of technological innovation, often referred to as the Fourth Industrial Revolution. Taiwan Semiconductor Manufacturing Company (TSMC) is leading this industrial revolution behind the scenes.

TSMC is the world’s largest semiconductor maker with a 58% share in 2020 in the semiconductor industry, enjoying a market positioning well ahead of its competition as it manufactures its own chip. The stock has traded between $ 96.20 and $ 142.20 over the past 52 weeks, and its price fell from $ 114 to $ 114.29 last month.

The share price is supported by its robust business model, strong demand and supply constraints that have negatively impacted the tech and consumer electronics value chains in Mexico.

Semiconductors are used in the manufacture of various types of electronic devices, including diodes, transistors, and integrated circuits. Several consumer products such as cell phones, smartphones, digital cameras, televisions, washing machines, refrigerators and LED bulbs also use semiconductors. As a first-time investor, you may want to invest in semiconductor stocks or diversify your portfolio. This article explains how to buy shares of Taiwan Semiconductor Manufacturing Company (NYSE: TSM).

How to buy TSM shares

Follow these 4 steps to place an order.

Step 1: Choose a brokerage house.

Buying stocks is easy, but you need to do some research before you get started. The easiest way to buy stocks is through an online broker. After opening your account, you can buy stocks through the broker’s app within minutes. Other options include using a full-service stock broker or buying shares directly from your employer.

It’s easy to open and set up a brokerage account. You complete an application on your behalf and provide proof of identification and funding information. You transfer funds to your brokerage account electronically or by mailing a check.

Step 2: Decide how many shares you want.

You don’t need to fill your entire wallet all at once. Over time, you can add to the initial stocks you buy and start trading more of the same stock or number of stocks you choose. New equity investors may want to consider fractional stocks, a relatively new offering from online brokers that allows you to buy part of a stock rather than all of the stock. Fractions of shares allow you to own expensive shares like Inc. (NASDAQ: AMZN) or Apple Inc. (NASDAQ: AAPL) which trade at $ 3,500 and $ 160, respectively.

This means you can get into expensive stocks – companies like Google and Amazon that are known for their 4-digit stock prices – with a much smaller investment. SoFi Technologies Inc. (NASDAQ: SOFI), Robinhood Markets Inc. (NASDAQ: HOOD) and Charles Schwab Corp. (NYSE: SCHW) are among the brokers who offer fractional shares.

Step 3: Choose your order type.

Choose from 2 basic order types: market orders and limit orders.

Market orders

With market orders, you buy or sell stocks at the current market price. Your order will likely be filled and completed quickly.

Don’t be surprised if the price you pay – or get if you sell – isn’t the same as what you received seconds before. Throughout the day, the bid and ask prices evolve continuously. This is why a market order is appropriate for buying stocks that do not have huge price movements, such as large, stable blue-chip companies rather than smaller, more volatile companies.

Limit orders

You have more control over the price at which your trade is executed when you use a limit order. If stock X is trading at $ 100 per share and you think a price of $ 95 per share is the value you place on the company, your limit order is asking your broker to not execute your order. only when the price drops to that level.

Step 4: Execute your transaction.

An executed trade occurs when an order to buy or sell is executed.

Where to buy TSM

If you’re an active trader aiming to beat the market, you probably already know what you’re looking for in a brokerage: low fees, premium research, cutting-edge strategy tools, and a robust trading platform. Below is a compilation of the best online brokers in a range of categories so you can choose one that meets your needs.

History and value of TSM shares

Over the past 6 months, TSM stock has traded between $ 108 and $ 124. Its market capitalization currently stands at $ 626.012 billion with a price-to-earnings (PE) ratio of 30.37%.

One way to measure whether a stock is overvalued or undervalued is to determine whether its PE ratio is greater than the growth rate of its earnings. According to this measure, TSM is overvalued as its profits in Q2 and Q3 2021 have increased by 2.8% and 10.7% respectively. These data, taken in isolation, would imply that the stock is overvalued. TSM stock may be considered overvalued when you compare it to the PE ratio of its competitors. For example, MediaTek and Samsung have PE ratios of 17.08% and 12.86% respectively. By this measure, TSM is overvalued because its PE ratio is higher.

TSM Stock: What Analysts Are Saying

Some analysts are optimistic about TSM and others are skeptical that its stock price reflects its true price. It’s always a good idea to look at what other analysts are saying about a stock to better understand how professionals in the industry view investing.

Krish Sankar Bear Case

TSM received a Market Perform rating and a price target of $ 120 by Cowen analyst Krish Sankar, which is an 8% increase. While he believes he has “industry-leading” margins, process technology, execution and market dominance, he considers end-demand to be “a near-term peak.” On stocks, he likes a better entry point. Geopolitical threats, increased industry competitiveness, and capital spending are additional reasons to be cautious about TSM’s stock, Sankar said.

Susquehanna Bancshares Taurus case

TSM stock had its “hold” rating reiterated by stock research analysts at Susquehanna Bancshares in a research note issued to investors. Total foundry services revenue in 2020 was $ 85.1 billion, with TSMC taking 63%. Samsung, TSMC’s closest rival, has just a 17% stake in the foundry industry.

A foundry is a company that manufactures the designs of other companies, such as fabless semiconductor companies. If a foundry doesn’t also produce its own designs, it’s known as a pure-play semiconductor foundry.

Advantages and disadvantages of TSM stock

advantages The inconvenients
Leader in semiconductor foundries Maybe overvalued
More than 53% market share in the world Higher price / earnings ratio than most of its peers
Chips lighter than Intel Geopolitical risks linked to China
Important customers like Apple

Is TSM stock a buy, sell or hold?

TSM achieves a holding rating because of its position as one of the only manufacturers of foundry semiconductors. It has an expectation rating from most analysts and a larger market share than Samsung, its closest rival. TSMC will inevitably play a role in the transition to the Fourth Industrial Revolution. It’s rated well by many analysts and the PE ratio suggests investors are bullish on the stock.

Frequently Asked Questions

What exchanges is TSM traded on?


What exchanges is TSM traded on?


Henri kouam


TSM’s shares were listed on the Taiwan Stock Exchange (TWSE) on September 5, 1994, under the TWSE code “2330”. TSMC’s American Depositary Shares (ADS) were listed on the New York Stock Exchange (NYSE) under the symbol “TSM” on October 8, 1997.

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What is the TSMC stock code on Bloomberg and Reuters?


What is the TSMC stock code on Bloomberg and Reuters?


Henri kouam


TSMC’s stock code is “2330.TT” for Bloomberg and “2330.TW” for Reuters.

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