- Taiwan Semiconductor holds 54% market share in the industry.
- Company’s Q3 2022 financials showed better than estimated EPS.
- TSM stock was trading at a market value of $80.46.
TSMC Still Holds Market Dominance
Semiconductor industry is growing at a rapid pace as the sector generated $552.1 Billion in 2021. And companies like Taiwan Semiconductor Manufacturing Industry (NYSE: TSM) are dominating the space, attracting institutional investors in the game. Recently, Berkshire Hathaway took over 60 Million company shares worth $4 Billion. The move pushed TSM stock price to over 10% after the news broke.
Taiwan Semiconductor is currently the biggest company in the industry and supplies chips to organizations like Apple (NASDAQ: AAPL), Qualcomm (NASDAQ: QCOM), Nvidia (NASDAQ: NVDA) and more. TSMC holds a lion’s share in the chip manufacturing space. The move by Warren Buffet’s company led NVDA stock price to grow by 2.28% in the last 24 hours after acquisition.
TSMC’s third quarter financials show better than expected EPS to $1.7 per share. But they fell short on their estimated revenue of $19.44, a surprise of $217.50 Million. Though their profit margin has increased since last quarter from 44.38% to 45.81%.
TSM Stock Chart Analysis
TSM stock demonstrated a bearish trend throughout the year. It opened as high as $145 in January 2022 but fell down to $116 by the month’s end. It maintained multiple support zones, $99 in March, $84 during May 2022 and $73 in July. it maintained a resistance at $91 during August but steadily came down to $59 in October 2022.
But the recent share acquisition by Warren Buffet’s Berkshire Hathaway has revived TSM stock price again. The move generated a buying interest among investors, ultimately pushing company shares by over 10% to $82.93. It slid down a bit during the period and was trading at a market price of $80.46 at the publication time.
The company currently holds a majority of semiconductor market share while competing with industry giants like Samsung and Intel. Taiwan Semiconductor had a primary user base in the United States accounting for 2/3rd of their sales. They are building a factory shell in their Arizona facility where the organization will focus on 3-nm nodes.
According to a Bloomberg report, Apple’s Macbook and A-series processors are primarily manufactured by Taiwan Semiconductor Manufacturing Company. But a latest report says the iPhone manufacturers are shifting their chip contracts to United State and European organizations.
This may prove hazardous to TSMC as it can lower their market dominance as well as TSM share value significantly. On the brighter side, a boom in the EV industry can help the company to flourish in future as semiconductor chips are primarily used in autonomous cars and e-mobility.
Source: https://www.thecoinrepublic.com/2022/11/17/tsm-stock-price-up-by-over-10-courtesy-of-berkshire-hathaway/