Calling the recently issued guidelines by the huge chip maker Taiwan Semi (TSM) is “quite strong,” Senior Skwab Senior contributor and advanced trading strategist Alex Coffey said TSM and forecast results have reduced investor concerns.
He added that TSM reported “very strong” fourth quarter results.
Coffey assesses TSM status
Entering today, TSM stock lost a third of its value against its high, so the expectations for the chip maker had fallen a lot, coffey noted.
But the technology giant was able to provide as much security as possible during these volatile times, the Schwab network contributor believes.
In addition, the company is “very likely to be part of whatever happens” in the chip sector, in America and abroad, the contributor noted.
More for TSM
Following the company's results and guidance, the Bernstein Investment Bank retained a $ 251 price target and a better performing score on the name. TSM should benefit from strong demand for its advanced packaging, according to Bernstein.
In the past month, TSM has fallen by 13%, while it has fallen 28% in the past three months.
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Disclosure: None. This article is originally published in Insider Monkey.