TSM has many of the ingredients of a great long-term investment, but investors may need to be patient. The company has said that it will accelerate the project if the act is passed. TSM has started construction on a new plant in Arizona where chips will be manufactured for Apple. This act specifically assists companies like TSM and Intel that fabricate chips rather than fabless chip companies that design but don't manufacture chips. On Wednesday the US Senate passed an initial vote on the Chips Act which will provide tax incentives to companies that manufacture chips in the US. But TSM is by far the largest chip manufacturer in the world and it will take a long time for competitors to catch up. NYSE: TSM Current vs Fair P/E 21 July 2022 TSM and the US Chips ActĬompetition is increasing and Intel (NASDAQ: INTC) in particular has already ramped up its investments in chip manufacturing to regain market share.
The fair P/E is a new feature on the Simply Wall St stock reports which approximates the expected P/E ratio by accounting for earnings growth forecasts, profit margins, and risk factors. TSM's price-to-earnings (P/E) ratio is also trading at a substantially wider discount to its fair P/E. However, having said that, the stock's beta (the amount the stock price moves relative to the market) is low, so the stock tends to rise and fall more gradually than its peers. However, the stock actually ranks quite favorably against the other prominent semiconductor companies in terms of valuation, profit margins, and revenue growth forecasts. TSM's stock price has risen since the results were released, but underperformed its industry.
0 kommentar(er)
