Here's Why Taiwan Semiconductor (TSM) Stock is Spiking Today
NEW YORK (TheStreet) -- Taiwan Semiconductor Manufacturing (TSM) - Get Report shares are jumping 2.22% to $24.44 on Monday after Apple (AAPL) asked its suppliers to get ready for higher-than-expected iPhone 7 production, Barron's reports, citing Taiwan's Economic Daily.
By the end of 2016, suppliers should anticipate producing 72 million to 78 million units of the new version of its smartphones. Analysts were estimating around 65 million units.
Following the reports of Apple's optimism going forward, the TAIEX index jumped 2.6% at the close in Taipei, largely boosted by Apple vendors Taiwan Semiconductor and Hon Hai Precision Industry (HNHPF).
Taiwan-based Taiwan Semiconductor Manufacturing engages in the computer-aided design, manufacture, packaging, testing, sale, and marketing of integrated circuits, color filters, and other semiconductor devices.
Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of A+.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
You can view the full analysis from the report here: TSM
