For immediate release
Chicago, IL – October 16, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in this blog include Taiwan Semiconductor Manufacturing Co. Ltd. TSM, NVIDIA Corp. NVDA, Advanced Micro Devices Inc. AMD, Apple Inc. AAPL, and Intel Corp. INTC.
Highlights from Tuesday’s analyst blog include:
TSM is a must buy ahead of earnings this week
Taiwan Semiconductor Manufacturing Co., Ltd. has become the new poster child for the global artificial intelligence (AI) craze. The company is the largest manufacturer of AI-based chipsets for the world’s best AI chipset developers.
TSM offers a wide range of wafer fabrication processes, including processes for manufacturing complementary metal-oxide-semiconductor logic, mixed-signal, high-frequency, embedded memory, bipolar CMOS mixed-signal, and more.
Solid 3rd quarter outlook for TSM stock
On October 9, Taiwan Semiconductor reported sales of approximately $7.82 billion in September. In addition to its August and July results, TSM is expected to report $23.6 billion in revenue in the third quarter of 2024.
If realized, this number would exceed the current Zacks Consensus Estimate and the company’s guidance provided during its Q2 2024 earnings call. TSM said the steady adoption of AI and smartphones has increased demand for cutting-edge process technology.
TSM has a strong customer base. The company is the largest manufacturer of NVIDIA Corp. chipsets. NVIDIA is the world’s largest developer of generative AI-based chips. TSM also supports Advanced Micro Devices Inc., Apple Inc., and Intel Corp., to name a few.
Taiwan Semiconductor is scheduled to announce its third quarter 2024 financial results before the opening bell on October 17th. The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Solid Earnings Forecast Revision for TSM Stock
The Zacks Consensus Estimate for Q3 2024 is currently calling for revenue of $22.72 billion, an improvement of 31.5% from the prior year and earnings per share (EPS) of $1.74, an increase of 34.9% from the prior year. is shown. The company reported unexpected positive earnings over the past four quarters, with an average profit margin of 7.8%.
Additionally, TSM has seen positive earnings estimate revisions for full-year 2024 and 2025 within the past 60 days. Currently, the Zacks Consensus Estimates are pointing to 2024 revenue and EPS growth of 23.6% and 24.5%, respectively, from the prior year.
story continues
Despite this solid growth, current Zacks Consensus Estimates for TSM’s full-year 2025 earnings and EPS reflect 23.5% and 28.4% upside, respectively. Additionally, TSM’s long-term (3-5 year) EPS growth rate of 26.5% is significantly higher than the market-wide index S&P 500’s growth rate of 13.6%.
TSM stock price has soared since the beginning of the year
Taiwan Semiconductor is experiencing strong demand for advanced technologies such as 3 nanometers (nm) and 5nm. Customer momentum is increasing with increased adoption of multi-project wafer processing services that enable customers to reduce mask costs.
It’s a positive that TSM is ramping up its efforts to ramp up 3nm production and 2nm development. Additionally, the overall strength of 7nm, 16nm and 28nm technologies also contributed significantly to sales growth. As a result, TSM stock has soared 84.8% year-to-date.
TSM stock still has room to rise further
Taiwan Semiconductor is currently trading near a 52-week high. Despite this, the average short-term price target among brokerages is an increase of 7.3% from the previous closing price of $192.21. Brokerage target prices currently range from $170 to $250. This represents an upside of ~30.1% and a ~11.6% downside.
Why aren’t you paying attention to Zacks’ top stocks?
Since 2000, our top stock picking strategy has beaten the S&P’s average annual gain of +7.0. Amazingly, it skyrocketed with average annual increases of +44.9%, +48.4%, and +55.2%.
Now you can access their live picks without cost or obligation.
See free stock >>
media contact
Zacks Investment Research
800-767-3771 extension 9339
support@zacks.com
https://www.Sachs.com
Past performance does not guarantee future results. Any investment involves the possibility of loss. This material is provided for informational purposes only and does not constitute investment, legal, accounting, or tax advice or a recommendation to buy, sell, or hold any security. No recommendation or advice is given as to whether an investment is suitable for any particular investor. It should not be assumed that an investment in the securities, companies, sectors or markets identified and described has or will be profitable. All information is current as of the date of this document and is subject to change without notice. The views and opinions expressed may not reflect those of the Company as a whole. Zacks Investment Research does not engage in investment banking, market making, or securities asset management activities. These returns are from a hypothetical portfolio of Zacks Rank = 1 stocks that is rebalanced monthly with zero trading costs. These are not actual stock portfolio returns. The S&P 500 is an unmanaged index. For performance numbers displayed in this press release, please visit https://www.zacks.com/performance.
Want the latest recommendations from Zacks Investment Research? Today you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Intel Corporation (INTC): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Taiwan Semiconductor Manufacturing Co., Ltd. (TSM): Free Stock Analysis Report
Click here to read this article on Zacks.com.
Zacks Investment Research
