Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, contract chip giant Taiwan Semiconductor Manufacturing (TSM 3.00%) has earned a respected four-star ranking.
With that in mind, let's take a closer look at TSMC and see what CAPS investors are saying about the stock right now.
TSMC facts
|
Headquarters (founded) |
Hsinchu, Taiwan (1987) |
|
Market Cap |
$87.9 billion |
|
Industry |
Semiconductors |
|
Trailing-12-Month Revenue |
$16.4 billion |
|
Management |
Chairman/CEO Dr. Morris Chang CFO Lora Hong |
|
Return on Equity (average, past 3 years) |
26.7% |
|
Cash / Debt |
$5.1 billion / $3.7 billion |
|
Dividend Yield |
2.3% |
|
Competitors |
Semiconductor Manufacturing International (SMI +0.00%) United Microelectronics (UMC 0.92%) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 1,402 members who have rated TSMC believe the stock will outperform the S&P 500 going forward.
Just last week, one of those Fools, adamlevy, tapped TSMC as a particularly timely opportunity:
Likely beneficiary of the fallout between Apple (AAPL 1.04%) and Samsung. Even without Apple's business the company will flourish in 2013. IT has contracts with big chip makers like Qualcomm (QCOM 0.41%), NVIDIA (NVDA 1.70%), and Broadcom (NASDAQ: BRCM), and still does some business with Apple. The company is growing its production capacity, as it becomes the largest mobile chip manufacturer in the world. At a P/E [of 16], I believe the company is undervalued.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, TSMC may not be your top choice.
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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
