Analysts are Slashing Price Targets of These 5 Semiconductor Stocks

3. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 81

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a leader in semiconductor foundry and manufactures around 11,617 products.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) posted its Q2 2022 results on July 14. The company saw its net profit increase by 76.4% YoY to $7.94 billion. This was the highest increase in net profit in the last eight quarters and easily surpassed the consensus estimates of $7.34 billion. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) also provided strong guidance for Q3 2022 as it anticipates revenue to be around $19.8 billion to $20.6 billion as opposed to $14.88 billion during the same period last year. Furthermore, the company anticipates full-year revenue growth to be in the mid-30s percentage as opposed to an earlier forecast of 26% to 29% growth.

Despite the promising results, Mehdi Hosseini at Susquehanna reiterated a Neutral rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock on July 14 and lowered the target price from $90 to $88. Hosseini cited the worse-than-expected inventory correction as the reason for the lowered price target.

Baron Funds discussed its stance on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q1 2022 investor letter. Here’s what was said about the company:

“Semiconductor giant Taiwan Semiconductor Manufacturing Company Ltd. detracted in the first quarter due to rising geopolitical tensions, macroeconomic uncertainties, and concerns over softening demand for consumer electronics. We retain conviction that Taiwan Semi’s technological leadership, pricing power, and exposure to secular growth markets, including high-performance computing, automotive, and IoT, will allow the company to deliver above its 15% to 20% revenue growth target over the next several years.”