Taiwan Semiconductor (TSM) Stock A Buy Right Now? | Summary and Q&A

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July 14, 2022
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Taiwan Semiconductor (TSM) Stock A Buy Right Now?

TL;DR

TSM's Q2 earnings beat expectations with a 36% year-over-year revenue growth. The company provided optimistic guidance for Q3, and its strong financials, balance sheet, and profitable operations position it well in the chip market.

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Key Insights

  • πŸ₯Ί TSM's Q2 earnings exceeded expectations, indicating solid financial performance and corroborating its position as a leading chip manufacturer.
  • πŸ•β€πŸ¦Ί The company's Q3 guidance suggests continued growth and demand for its services in the chip market.
  • 😘 TSM's strong balance sheet, cash position, and low liabilities provide stability and potential for future investments.
  • πŸ’„ The stock's valuation has become more reasonable, making it an attractive option for investors.
  • πŸ‰ TSM's long-term uptrend suggests potential for further growth and profitability.
  • πŸ‡ΊπŸ‡Έ The company's efforts to build chip plants, particularly in the United States, highlight its position as an industry leader and potential attractiveness for acquisition.
  • πŸ’ TSM's ability to generate significant cash flow and maintain profitability showcases efficient operations.

Transcript

like a lot of stocks taiwan semiconductor manufacturing company otherwise known as tsm is down big year to date down over 36 but this is on the heels of announcing their q2 earnings which we'll get into in depth on today's show also talk about the q3 guidance we'll go through all the financials take a look at all the relevant things that you need t... Read More

Questions & Answers

Q: How did TSM's Q2 earnings perform compared to expectations?

TSM's Q2 earnings surpassed expectations with a revenue of $18.16 billion, beating estimates by over $580 million. The year-over-year growth was 36%, indicating strong performance.

Q: What is TSM's guidance for Q3?

TSM provided optimistic guidance for Q3, expecting revenue between $19.8 billion and $20.6 billion. This surpasses consensus estimates and suggests continued growth.

Q: How are TSM's financials and balance sheet?

TSM's financials are impressive, with high gross margins of 59% and operating margins of 49%. The company has a strong balance sheet, with over $42 billion in cash and $75 billion in property, plant, and equipment.

Q: What is TSM's valuation and stock performance?

TSM's valuation has pulled back, trading at around seven times sales and 17 times trailing 12 months earnings. The stock is still in a long-term uptrend, showing resilience despite recent market downturns.

Summary & Key Takeaways

  • TSM's Q2 revenue reached $18.16 billion, exceeding expectations by over $580 million, with a 36% year-over-year growth.

  • The company's Q3 guidance predicts revenue between $19.8 billion and $20.6 billion, maintaining high gross and operating profits.

  • TSM's balance sheet shows a healthy financial position, with over $42 billion in cash, $75 billion in property, plant, and equipment, and minimal liabilities.

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