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The TSM ADR Trades around the Middle of Its 52-Week Range

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The TSM ADR at a glance

In this series, we looked at TSMC’s (TSM) technology roadmap and the financial performance for fiscal 2015 and outlook for fiscal 2016. Now let’s look at the performance of the TSM ADR (American depositary receipt) over the past 52 weeks. TSMC has a market capitalization of $109.4 billion and a price to earnings ratio of 12.13.

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Stock price movement

The TSM ADR is currently trading above $20, or in the mid-range of its 52-week range of $17.3–$25.8. The ADR was trading between $22–$25 during the first half of fiscal 2016. However, the stock continued to fall in August and September 2015 as the company’s monthly revenue fell 3.2% and 13.8% YoY (year-over-year), respectively.

The sales fell as Qualcomm (QCOM) switched its foundry partner for its high-end Snapdragon chips in July 2015 after its 810 chips were hit by claims of overheating. This act of taking business away from TSMC to Samsung (SSNLF) suggested that the former was responsible for the overheating issue.

The TSM ADR rallied to $22–$23 in October to December despite falls of 12.1% and 16.1% YoY, respectively, in sales in November and December 2015. This rally came as TSMC was rumored to have been selected as an exclusive supplier of A10 chips for Apple’s (AAPL) iPhone 7 and new iPad models.

A similar stock price movement was witnessed by rival Intel (INTC). The company’s stock fell to a 52-week low range of $25 between July and August 2015. The stock then picked up in November and December 2015 and was hovering at its 52-week high range of $37.

Analyst ratings

Analysts have given the TSM ADR an average rating of “Buy” and a 12-month price target of $20.0. Of the ten analysts monitoring the stock, one rated it a “Sell,” two rated it a “Buy,” and seven rated it a “Hold.”

ETF holdings

TSM’s 0.11% market capitalization is held by 14 ETFs. The Semiconductor ETF (SMH) has exposure in 26 semiconductor stocks from the entire supply chain. Among the 14 ETFs, SMH has the highest exposure of 13.94% in TSM.

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