Taiwan Semiconductor Manufacturing Co (NYSE:TSM) shares rose Monday after reports the contract chipmaker’s Arizona plant’s production output is matching that of its Taiwan fabs.
The Taiwanese chipmaker’s yield from pilot production at its first advanced U.S. plant is comparable to similar facilities in the southern Taiwanese city of Tainan, Bloomberg said, citing sources familiar with the matter.
Also read: Nvidia, AMD and TSM lead AI stock sell-off, sending semiconductor ETFs down
Recently, Taiwan Semiconductor COO of Samsung Electronics expressed his optimism about the artificial intelligence industry. A Taiwan Semiconductor supplier, Scientech Corp., also made similar claims.
Taiwan Semiconductor and global partners have also accelerated silicon photonics for AI, indicating continued demand.
Taiwan Semiconductor postponed production at its Arizona plant from 2024 to 2025 due to the need for more skilled workers. The contract chipmaker’s global expansion reflects efforts by several countries to maintain their semiconductor bases, which have been hit hard by the pandemic outbreak in China.
Taiwan Semiconductor stock has risen more than 75% in the past 12 months. Investors can gain exposure to the stock through the SPDR S&P Emerging Asia Pacific ETF (NYSE:GMF) and the ProShares Nanotechnology ETF (NYSE:KLEIN).
Is Taiwan Semiconductor a good stock to buy?
Wall Street analysts consider Taiwan Semiconductor an Outperform overall, based on its three-month reporting history. Bernstein’s Mark Li in Taiwan Semiconductor is the most bullish, expecting a 33.33% upside for the stock over the next year.
But if you look at how the market as a whole feels about the stock, you can point to historical price action to determine whether investors have a strong opinion about the stock. Over the past 3 months, Taiwan Semiconductor has fallen 9.54%, indicating that opinion of the company and how attractive it is to own has deteriorated based on its stock price or underlying fundamentals, such as revenue, which has risen 32.79% over the past year.
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Price promotion: TSM shares rose 2.00% to $159.96 premarket at last check on Monday.
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This article Taiwan Semiconductor’s US Plant Matches Taiwan Production Yields, Stock Gains originally appeared on Benzinga.com
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