Taiwan Semiconductor Manufacturing Company (TSM, Financial) shares jumped nearly 4% on Thursday after the company posted strong fourth-quarter earnings. The semiconductor giant reported a net income of $11.59 billion and an EPS of $2.24. The results beat Wall Street expectations, with analysts' expectations for EPS of $2.16.
Although TSMC's market capitalization is mind-blowing at $870.56 billion, the company still presents itself as a financially healthy company in terms of strength owing to its dominance in the market. Analysts at JPMorgan maintained their Overweight rating for the stock and its Target Price at NT$1,500.00. Tellingly, TSMC had three growth catalysts that Analyst Gokul Hariharan expects to be driving its performance in the coming years.
Gen AI technologies are a key growth factor in TSMC's outlook. The company has also projected a compound annual growth rate (CAGR) of about 20% in 2024-29. TSMC would put itself in an ideal position to pull in an estimated revenue of $220 billion through the forecast period, an unchanged percentage of 22.65% revenue growth over the past year.
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