TSMC: Riding Tailwinds In 2023
TSMC is up 41% since our last buy rating in October. We continue to be bullish on TSMC, expecting the company to recover meaningfully toward 2H23.
TSMC continues to dominate the foundry space as the go-to supplier of high-performance chips; hence, we expect the company to benefit from demand tailwinds as the semi-space rebounds.
We expect the company to benefit from ASP increases on advanced node transitions toward the end of 2023 and increased adoption of advanced nodes driving overall demand.
We believe the stock price may be volatile in the nearterm as we expect CAPEX cuts in 1H23 as inventory correction takes place.
We believe the stock provides a favorable entry point,trading at 14.4x C2023 on a P/E basis versus the peer group average of 21.9x. $Taiwan Semiconductor(TSM.US$ $PHLX Semiconductor Index(.SOX.US$
TSMC continues to dominate the foundry space as the go-to supplier of high-performance chips; hence, we expect the company to benefit from demand tailwinds as the semi-space rebounds.
We expect the company to benefit from ASP increases on advanced node transitions toward the end of 2023 and increased adoption of advanced nodes driving overall demand.
We believe the stock price may be volatile in the nearterm as we expect CAPEX cuts in 1H23 as inventory correction takes place.
We believe the stock provides a favorable entry point,trading at 14.4x C2023 on a P/E basis versus the peer group average of 21.9x. $Taiwan Semiconductor(TSM.US$ $PHLX Semiconductor Index(.SOX.US$
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