Finance
Why Taiwan Semiconductor Stock Had a Thursday to Forget
In the life of almost every stock, sooner or later there comes a day when the market can’t decide whether it’s a buy or a sell. That happened to the mighty chipmaker Taiwanese semiconductor manufacturing (NYSE: TSM) (TSMC) on Thursday. Not coincidentally, this was the trading session just after the current popular company in the chip world published its latest market-shaking news item. On the day, TSMC traded sideways, which happened to match the clock’s flat line S&P500 index.
Here come the professional bulls
This happened despite a series of generally positive new insights from analysts on TSMC stock. Numerous experts felt compelled to give their opinions on TSMC, as graphics processing unit (GPU) king and company peer Nvidia had revealed it second quarter of the results for the 2025 financial year after market close on Wednesday.
Citi GroupFirst, he thinks more gains are in store for TSMC stock. In a new analysis, the bank points out that the company has managed to double the production capacity of its chip-on-a-wafer-on-substrate (CoWoS). This next-generation “packaging” technology is designed for high-performance computing (HPC) and artificial intelligence (AI) capabilities.
The bank, like the bank, reiterated its buy recommendation for TSMC Bank of America. BofA’s new research note on the chipmaker shows that it remains encouraged that demand for AI capacity is high, among other factors supporting the Taiwan-based company.
For now I’m ignoring the industry
Nvidia’s lagging and projected growth will almost certainly help support TSMC’s business. Still, expectations for the former company’s quarter were extremely high, and when that happens, more than a few market players are sure to be disappointed. Regardless of the continued praise from experts, at least some of those investors will be giving Nvidia and all its associated stocks the cold shoulder for a while.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. Erik Volkman has no position in any of the stocks mentioned. The Motley Fool holds positions in and recommends Bank of America, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has one disclosure policy.
Why Taiwan Semiconductor Stock Had a Thursday to Forget was originally published by The Motley Fool
