TSMC – Taiwan Semi Sp ADR

Taiwan Semiconductor is a chip stock that managed to withstand the substantial drawdowns that hurt other tech stocks in 2022. It is the world’s largest chip maker, having manufactured more than 12,300 products that include smartphones, automotive, and digital consumer electronics. Although the semiconductor industry and fabrication can be very cyclical, TSM’s bullish momentum continues to allow this stock to outperform. Taiwan Semiconductor has managed to maintain its pricing power in a popular industry while continuing to trade at a discount, all while garnering the interest of Warren Buffett, whose Berkshire Hathaway disclosed its $4.1B stake in November. Momentum for TSM is bullish, showcasing a B- momentum grade and outperforming its sector peers quarterly. With a forward P/E ratio of 12.70x compared to the sector median of 24.11x and a forward PEG of 0.58x, Taiwan Semiconductor is undervalued substantially relative to its peers.