Chip Stock Rises on Strong Earnings, Revenue Forecast

TSM still carries a more than 32% year-to-date deficit, though

Digital Content Manager
Jul 14, 2022 at 8:59 AM
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Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) posted better-than-expected second-quarter earnings of $1.55 per share earlier today, though revenue of $18.16 billion missed analysts' estimates. Nonetheless, the chip concern raised its revenue outlook on resilient chip demand in data centers and those used in electric vehicles (EV), but warned of inflation pressures. At last check, TSM is up 2.3% to trade at $83.19.

The brokerage bunch has yet to chime in on the results, but was already bullish towards the equity coming into today. Specifically, five of the six analysts in coverage called the stock a "buy" or better, while only one said hold. Plus, the 12-month consensus target price of $132.17 is a 62.6% premium to last night's close.

Short-term options traders are approaching Taiwan Semiconductor stock with a call-bias. This is per the equity's Schaeffer's put/call open interest ratio (SOIR) of 1, which stands higher than just 5% of readings in its annual range.

Digging deeper, TSM is fresh off a July 5, one-year low of $73.74, with the 50-day moving average pressuring the shares lower since February. A new ceiling seems to be forming at the $84 region, and year-to-date Taiwan Semiconductor stock is still down more than 32%.

 

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