Taiwan Semiconductor Is One Of The 'Best Pick-And-Shovel Stories' Despite Earthquake Setback: Analyst
Portfolio Pulse from Priya Nigam
Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) faced a production halt due to a strong earthquake in Taiwan, potentially impacting its June-quarter sales. However, Needham analyst Charles Shi remains optimistic, reiterating a Buy rating and raising the price target from $133 to $168. Shi believes TSM can recover lost sales in Q3 and meet its full-year growth targets, positioning it as a strong AI pick-and-shovel investment opportunity. TSM shares rose 1.68% to $147.84 following the news.
April 10, 2024 | 3:07 pm
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POSITIVE IMPACT
Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) experienced a temporary production stop due to an earthquake but is expected to recover lost sales in Q3 and meet its annual growth targets. Needham analyst Charles Shi remains positive, upgrading the price target to $168.
Despite the short-term production halt and potential impact on Q2 sales, the analyst's optimism and the price target increase suggest a strong recovery and growth potential for TSM. The company's ability to recover lost sales and meet its full-year targets, along with the stock price increase post-announcement, indicate a positive short-term impact.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100