Taiwan Semiconductor Manufacturing Co (NYSE: TSM), a prominent player in the global semiconductor industry known for supplying major technology firms such as Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA), has forecasted that its first-quarter revenue will be at the lower end of its guidance.
This adjustment comes in light of a $161 million setback resulting from an earthquake in January that affected its operations in southern Taiwan. Although the quake caused damage to some semiconductor wafers, TSMC’s facilities escaped structural harm, enabling the company to quickly resume normal operations.
Despite this hurdle, TSMC maintains a positive outlook for the remainder of the year.
TSM Stock Sees Premarket Gains as Earthquake Impact Not Long-Term
TSMC’s US-listed stock has experienced notable fluctuations in recent days. After closing at $206.12 previously, the stock is currently trading at a premarket price of $210.06, up 1.91% over the premarket trading session.
Recent closing prices reflect a downward trend, with the stock closing at $206.12 on February 7, down from $210.50 on February 6. This volatility underscores the broader challenges faced by TSMC and its investors in the current market environment.
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TSM Stock Brief
TSMC’s financial metrics offer a mixed picture of its current standing. The company boasts a market capitalization exceeding $1 trillion, with a trailing P/E ratio of 29.96 and a forward P/E ratio of 19.37, suggesting expectations of future earnings growth. The stock’s dividend rate stands at $2.78, yielding 1.34%, providing some income for shareholders.
Key ratios, such as a debt to equity ratio of 24.081 and a quick ratio of 2.238, highlight TSMC’s financial health and capacity to meet short-term obligations. Analysts have set a target high price of $273.00 and a low of $180.00, indicating varied expectations for the stock’s future trajectory.
Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.
About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
