Tuesday, March 20, 2012

Investopedia: Investors Can Do Better Than Taiwan Semiconductor


In many respects Taiwan Semiconductor, also known as TSMC, (NYSE:TSM) acts as a proxy investment for the semiconductor industry at large. Boasting a who's who client list and the most capacity in the business, Taiwan Semiconductor rises and falls with the fortunes of the sector, but manages to do reasonably well even in the worst of times. While Taiwan Semiconductor is a well-run company, the valuation on the stock today suggests that investors willing to take on additional risk could do better with individual chip stocks.

Will There be a Second Half Rebound in Expectations? 
Like the semiconductor sector as a whole, investors went into 2012 with fairly strong expectations for a rebound in chip demand and revenue. So far, though, those expectations seem like they may have been a bit hasty. Once again, both Texas Instruments (NYSE:TXN) and Altera (Nasdaq:ALTR) revised guidance lower for the first quarter of 2012 and TSMC has also modestly trimmed its expectations for logic chip sales growth in 2012.




Click here for more:
http://stocks.investopedia.com/stock-analysis/2012/Investors-Can-Do-Better-Than-Taiwan-Semiconductor-TSM-ASML-BRCM-QCOM0320.aspx

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