TSMC Proving to Be a Vital Global Company

TSM is the leading contract semiconductor manufacturer in the world. Its production capabilities make it attractive to the biggest technology companies, which design their own chips and have TSMC produce them. As a producer for competing companies, TSMC ends up victorious no matter which of its clients succeeds. This makes it a vital global company – it’s a big part of helping drive technological progress.

TSMC’s third-quarter fiscal 2024 earnings showed total revenue of $23.5 billion, which is a 39% year-over-year increase. Per-share earnings were $1.94, meaning EPS grew 54.2% over a year prior. As for the fourth quarter, TSMC projected between $26.1 billion and $26.9 billion in sales, surpassing previous estimates.

It’s no wonder TSM shares doubled in a year – and they could rise more. MAPsignals data shows how a rare bullish signal reflects Big Money investors are betting heavily on the forward picture of the stock.

Big Money Loves TSM

Institutional volumes reveal plenty. In the last year, TSM has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in TSM shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with TSMC.

TSMC Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, TSM has strong sales and earnings growth:

• 3-year sales growth rate (+16.6%)
• 3-year earnings growth rate (+20%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +30%.

Now it makes sense why the stock has been powering to new heights. TSM has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

TSMC has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It just made the rare Top 20 report for the first time in a year, with more potentially on the horizon. The blue bars below show when TSM was a top pick:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

TSMC Price Prediction

The TSM rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in TSM at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.