Is It Too Late to Buy TSMC Stock?
Shares of Taiwan Semiconductor Manufacturing (NYSE: TSM), the contract chipmaking juggernaut better known as TSMC, recently hit a new record high after the company posted its fourth-quarter earnings report on Jan. 13.
TSMC's revenue rose 24% year over year to $15.74 billion, which beat estimates by $70 million, as its earnings grew 19% to $1.15 per ADR and topped expectations by four cents. It expects its first-quarter revenue to grow 28-33% year over year, which also exceeded expectations for 23% growth.
TSMC's robust growth rates weren't surprising, since the global chip shortage, which started in early 2020, has consistently caused the market's demand for TSMC's wafers to outstrip its available supply. TSMC also manufactures the world's smallest and most advanced chips, which makes it a crucial partner for fabless chipmakers like Apple, AMD, and Qualcomm.
Source Fool.com
