You need to know Taiwan Semiconductor Manufacturing
Third-quarter sales fell a modest 3.3% year over year to $2.76 billion, a 21% uptick from the previous quarter. Its $0.18 of earnings per American Depositary Share (ADS) were flat when compared to 2008, but 25% above the second quarter of 2009. The revenue results fell at the very top end of management guidance, and TSMC's recovery seems to be sharply V-shaped.
Indeed, this titan of chip manufacturing is outperforming many of its own customers:
Company |
Year-Over-Year Revenue Change |
---|---|
NVIDIA |
(35.2%) |
Advanced Micro Devices |
(24.2%) |
Broadcom |
(6.2%) |
TSMC |
(3.3%) |
Qualcomm |
9.4% |
Data from Capital IQ, a division of Standard & Poor's.
That's because TSMC and its rivals, like United Microelectronics
I am a longtime TSMC shareholder, and I've been known to drop the name in front of our Global Gains analysts. TSMC dominates a business that is essential to the electronics infrastructure of the world. The company sports massive profit margins and just reported 27% return on equity -- and it even comes with a 4.8% cash dividend yield. What's not to love?