TSM stock is a semiconductor company that makes a variety of semiconductor components. Its business is highly cyclical and a decline in demand for semiconductors could hurt the company’s bottom line. Additionally, rising interest rates and China’s escalating threats toward Taiwan could negatively impact the company’s operations.
Although TSMC isn’t immune to macro issues, the company is in a better position to navigate through these issues than some other semiconductor companies. This is reflected in its recent share gains, which are tied to the company’s progress in advanced nodes. IBD’s Composite Rating on the company’s stock is a relatively low 62.
TSM is the world’s largest dedicated chip foundry, with a projected 57% market share by 2021. Founded in 1987 as a joint venture by Philips, the government of Taiwan, and private investors, the company went public as an ADR in 1997. It is a world-class semiconductor manufacturer that employs cutting-edge process technologies to create semiconductors.