In nearly every stock’s life, ultimately it has a day where the market just cannot determine whether it is a buy or sell. That happened to mighty chipmaker Taiwan Semiconductor Manufacturing (NYSE: TSM) (TSMC) on Thursday. Not coincidentally, this was the trading session just after the present hot company within the chip sphere published its latest market-shaking news item. On the day, TSMC traded sideways, which happened to match the flat line of the bellwether S&P 500 index.
Here come the skilled bulls
This occurred despite a clutch of generally positive latest analyst takes on TSMC shares. Quite a few pundits felt compelled to weigh in on TSMC, as graphics processing unit (GPU) king and company peer Nvidia had unveiled its second quarter of fiscal 2025 results after market close on Wednesday.
Citigroup, for one, feels there’s more gain in store for TSMC stock. In a fresh evaluation, the bank identified that the corporate has managed to double capability to supply its chip-on-a-wafer-on-substrate (CoWoS). This next-generation “packaging” technology is designed for high-performance computing (HPC) and for artificial intelligence (AI) functionalities.
The bank reiterated its buy suggestion on TSMC, as did Bank of America. BofA’s latest research note on the chipmaker shows that it continues to be encouraged that demand for AI capability is powerful, amongst other aspects supporting the Taiwan-based company.
Ignoring the industry, for now
Nvidia’s trailing and anticipated growth will almost definitely help support TSMC’s business. Still, expectations for the previous company’s quarter were extremely high, and anytime that happens greater than a number of market players are sure to be disillusioned. Regardless of the continued praise from pundits, not less than a few of those investors will proceed to offer Nvidia and any associated stock the cold shoulder for a bit.
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Bank of America is an promoting partner of The Ascent, a Motley Idiot company. Citigroup is an promoting partner of The Ascent, a Motley Idiot company. Eric Volkman has no position in any of the stocks mentioned. The Motley Idiot has positions in and recommends Bank of America, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Idiot has a disclosure policy.
Why Taiwan Semiconductor Stock Had a Thursday to Forget was originally published by The Motley Idiot