Is This The Dip To Buy TSMC?

"Buy on the dips" is another one of those Wall Street sayings that gets repeated to the point of cliché. Unfortunately, it is never quite so easy. Dips are scary times to buy anything, because it goes against reason to buy when things seem to be getting worse. Besides, every abject failure starts as a "dip" and buying those stocks has a way of making the buyer feel like a "dip".

And yet, maybe this is one of those dips where investors should consider a stock like Taiwan Semiconductor (NYSE:TSM).

The Quarter That Was
Like a lot of the semiconductor companies it provides fabrication services for, TSM had a solid third quarter. Revenue rose 25% from last year and 7% on a sequential basis. Gross margin improved a bit, and operating income rose 35% from last year and 6% sequentially. Shipments were up 31% and 9%, respectively, and ASPs were down by a manageable low single-digit amount. 

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