NEW YORK ( TheStreet) - Shares of technology companies Taiwan Semiconductor ( TSM), Novellus ( NVLS), EMC ( EMC), Red Hat ( RHT) and Hitachi ( HIT) all hit 52-week highs on Tuesday.
Taiwan Semiconductor Shares of Taiwan Semiconductor hit a 52-week high Tuesday of $15.51. The stock's 52-week low of $10.75 was set on Aug. 18. Taiwan Semiconductor shares trade at an estimated price-to-earnings ratio for next year of 13.9X; the average for semiconductor companies is 23.13X. For comparison, United Microelectronic ( UMC) has a lower forward P/E of 13.28X. Six of the eight analysts who cover Taiwan Semiconductor rate it at hold; two analysts give the stock a buy rating. TheStreet Ratings gives Taiwan Semiconductor an A+ grade with a buy rating and $17.36 price target. The stock has risen 19.13% year to date. Analyst comment: "TSMC believes supply chain inventory will return to seasonal levels by March vs prior expectations of 2Q12," Bank of America Merrill Lynch analysts wrote in a March 15 report. "Whether inventory overshoots in the June quarter will depend on end-demand, it said. Nevertheless, TSMC expects upside to its current capex budget ($6bn), which is driven by 28nm demand and early-ramp yields."