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Symbol Company % Change Price To invest

TSM

Taiwan Semiconductor
$ 121.70 Buy actions

The COVID-19 pandemic illustrated how technology is critical to everyday life. The semiconductor chip, an important component of today’s technology, forms a key part of technological innovation, often called the fourth industrial revolution. Taiwan Semiconductor Manufacturing Company (TSMC) is leading this behind-the-scenes industrial revolution.

TSMC is the world’s largest semiconductor manufacturer with a 58% share in 2020 in the semiconductor industry, with a market position far ahead of its competitors as it manufactures its own chip. The stock has traded between $ 96.20 and $ 142.20 in the last 52 weeks, and its share price has risen from $ 114 to $ 114.29 in the last month.

The share price is supported by its solid business model, strong supply and demand restrictions that have negatively impacted the technology and consumer electronics value chains in Mexico.

Semiconductors are used in the manufacture of various types of electronic devices, including diodes, transistors, and integrated circuits. Various consumer products in everyday life, such as mobile phones, smartphones, digital cameras, televisions, washing machines, refrigerators, and LED bulbs, also use semiconductors. You may want to invest in semiconductor stocks as a first-time investor or diversify your portfolio. This article explains how to buy Taiwan Semiconductor Manufacturing Company (NYSE: TSM) stock.

How to buy TSM shares

Follow these 4 steps to place an order.

Step 1: choose a broker.

Buying stocks is easy, but you need to do a little research before taking the plunge. The easiest way to buy stocks is through an online broker. After opening your account, you can buy shares through the broker’s app in a matter of minutes. Other options include using a full-service stockbroker or buying stocks directly from your employer.

It’s easy to open and set up a brokerage account. Complete an application for your account and provide proof of identification and funding information. You transfer funds to your brokerage account electronically or by mailing a check.

Step 2: decide how many shares you want to share.

You do not need to complete your entire portfolio at once. Over time, you can add to the initial stocks you buy and start trading more of the same stocks or any number of stocks you choose. New investors in stocks may consider fractional stocks, a relatively new offering from online brokers that allows you to buy a portion of a stock rather than the entire stock. Fractional stocks allow you to own expensive stocks like Amazon.com Inc. (NASDAQ: AMZN) or Apple Inc. (NASDAQ: AAPL) trading at $ 3,500 and $ 160 respectively.

What that means is that you can get into expensive stocks, companies like Google and Amazon that are known for their 4-figure stock prices, with a much lower investment. SoFi Technologies Inc. (NASDAQ: SOFI), Robinhood Markets Inc. (NASDAQ: HOOD) and Charles Schwab Corp. (NYSE: SCHW) are among the brokers offering fractional shares.

Step 3: choose your type of order.

Choose from 2 basic order types: market orders and limit orders.

Market orders

With market orders, you buy or sell shares at the current market price. Your order will likely be executed and completed quickly.

Don’t be surprised if the price you pay, or get if you are selling, is not the same as what you were given a few seconds earlier. Throughout the day, the bid and ask prices move continuously. That is why a market order is appropriate for buying stocks that do not have large swings in price, such as large, stable front-line corporations rather than smaller, more volatile businesses.

Limited orders

You have more control over the price at which your trade is executed when you use a limit order. If X’s stock is trading at $ 100 per share and you believe that a price of $ 95 per share is in line with how you value the company, your limit order instructs your broker to only execute your order when the price falls to that level.

Step 4: Run your trade.

An executed trade occurs when a buy or sell order is completed.

Where to buy TSM

If you’re an active trader looking to beat the market, you probably already know what you’re looking for in a brokerage: minimal fees, premium research, cutting-edge strategy tools, and a solid trading platform. Below is a compilation of the best online brokers in a variety of categories so you can choose one that meets your needs.

History and value of TSM shares

In the last 6 months, TSM shares have traded between $ 108 and $ 124. Its market capitalization is currently $ 626.012 billion with a price-earnings (PE) ratio of 30.37%.

One way to measure whether a stock is overvalued or undervalued is to see if its PE ratio is higher than the growth rate of its earnings. By this measure, TSM is overvalued as its earnings in the second and third quarters of 2021 increased by 2.8% and 10.7%, respectively. These data, in isolation, would imply that the stock is overvalued. TSM shares can be seen as overvalued when you compare them to the PE ratio of its competitors. For example, MediaTek and Samsung have PE ratios of 17.08% and 12.86% respectively. By this measure, TSM is overvalued as its PE ratio is higher.

TSM Stocks: What Analysts Are Saying

Some analysts are optimistic about TSM and others are skeptical that its share price reflects its true price. It’s always a good idea to look at what other analysts are saying about a stock to better understand how industry professionals think about investing.

Krish Sankar Bear Case

Cowen analyst Krish Sankar gave TSM a Market Perform rating and a price target of $ 120, representing an increase of 8%. While he believes he has “industry leading” margins, process technology, execution and market dominance, he sees final demand as a “short-term spike.” In stocks, you like a better entry point. Geopolitical threats, increased industry competitiveness and capital spending are additional causes of caution for TSM’s actions, says Sankar.

Susquehanna Bancshares Bull Case

Susquehanna Bancshares equity research analysts reiterated their “hold” rating on TSM shares in a research note issued to investors. Total foundry services revenue in 2020 was $ 85.1 billion, and TSMC took 63% of that. Samsung, TSMC’s closest rival, only has a 17% share in the foundry manufacturing industry.

A foundry is a business that operates to manufacture designs for other companies, such as semiconductor companies without a factory. If a foundry does not also produce its own designs, it is known as a pure semiconductor foundry.

Pros and cons of TSM shares

pros Cons
Leader in semiconductor foundries Could be overrated
More than 53% of the market share worldwide. Higher price-to-earnings ratio than most of its peers
Chips lighter than Intel Geopolitical risks arising from China
Major customers like Apple

Is TSM Stock a buy, sell or hold?

TSM earns a retention rating due to its position as one of the only cast semiconductor manufacturers. It has a retention rating from most analysts and a higher market share than Samsung, its closest rival. TSMC will inevitably play a role in the transition to the fourth industrial revolution. It has a strong rating from many analysts, and the PE ratio suggests investors are bullish on the stock.

Frequent questions

What stock exchanges is TSM listed on?

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What stock exchanges is TSM listed on?

order

Henri Kouam

1

TSM’s shares were listed on the Taiwan Stock Exchange (TWSE) on September 5, 1994, under the TWSE code “2330”. TSMC’s American Depositary Shares (ADS) were listed on the New York Stock Exchange (NYSE) under the ticker symbol “TSM” on October 8, 1997.

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What is TSMC’s share code on Bloomberg and Reuters?

1

What is TSMC’s share code on Bloomberg and Reuters?

order

Henri Kouam

1

TSMC’s share code is “2330.TT” for Bloomberg and “2330.TW” for Reuters.

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