- TSMC's dominance in semiconductor technology is supported by its leads in advanced nodes like N3 and N5.
- The strategic focus on R&D for N3, N2, and beyond, emphasizing energy efficiency and performance, aligns with long-term industry leadership goals.
- Challenges in certain segments are balanced by proactive strategies, including partnerships (Intel collaboration) and addressing market fluctuations.
- The medium-term price target for TSMC stock is $145, with interim resistance levels at $108 and $122.
In the fast-evolving landscape of semiconductor technology, Taiwan Semiconductor Manufacturing Company Limited (TSMC) emerges as a towering figure, setting new benchmarks with its advanced nodes in chip fabrication. This article, delves into the investment thesis for TSMC, highlighting its dominance, strategic focus on R&D, and the challenges it faces. The medium-term price target for TSMC stock is projected to reach $145, supported by its strong performance in advanced nodes and market resilience.
- Dominance in Advanced Nodes:TSMC's leadership in cutting-edge semiconductor technology is crucial to its value growth. Advanced nodes like the 3-nanometer (N3) and 5-nanometer (N5) technologies contribute significantly to wafer revenue, constituting 59% of total wafer revenue in Q3 2023.
- Revenue Growth and Operational Efficiency:Despite challenges such as inventory adjustments, TSMC demonstrated robust Q3 revenue of $17.3 billion, driven by the ramp-up of 3-nanometer technology and increased demand for 5-nanometer technologies. The gross margin expanded to 54.3%, showcasing operational efficiency.
- R&D Investment and Innovation:
