Piper Sandler recently upgraded CrowdStrike to overweight from neutral amidst the crises surrounding the global tech outage. Analyst Rob Owens believes that the cybersecurity company has the potential to make a strong rebound, urging investors to buy the dip. Despite lowering his price target by $20 to $290, Owens sees a 30.6% upside for the stock. The recent software update issued by CrowdStrike resulted in a 43% plunge in its shares, leading to global outages across various industries. Even though the company is facing litigations and settlements, Owens is optimistic about the long-term prospects of CrowdStrike.
On the other hand, Morgan Stanley has named Taiwan Semiconductor as a top pick, maintaining an overweight rating on the stock. Despite the recent pressure faced by the chipmaker, the bank sees an upside potential of 36.4% with a price target of 1,200 Taiwanese dollars. With the U.S.-listed stock down 14.9% quarter to date, analyst Charlie Chan believes that TSMC’s quality and defensive nature during a semiconductor downcycle makes it an attractive investment. The confirmation of price hikes and ongoing AI capex strength are expected to be key catalysts for Taiwan Semiconductor.
As investors navigate through the volatile tech sector, it is crucial to assess the underlying strengths and weaknesses of individual companies before making investment decisions. Both CrowdStrike and Taiwan Semiconductor have faced challenges in recent times, but analysts are optimistic about their potential to bounce back. While CrowdStrike is grappling with the aftermath of a global tech outage, Taiwan Semiconductor is weathering the storm of a semiconductor downcycle.
Diversification is key when it comes to building a resilient investment portfolio. By combining a mix of high-growth tech stocks with defensive plays, investors can mitigate risk and maximize returns. Companies like CrowdStrike and Taiwan Semiconductor offer unique opportunities for investors looking to capitalize on the evolving tech landscape. While there may be short-term challenges, the long-term outlook for these companies remains promising.
The analyst calls and Wall Street chatter surrounding CrowdStrike and Taiwan Semiconductor highlight the dynamic nature of the stock market. Despite facing temporary setbacks, both companies have the potential to deliver substantial returns for investors who are willing to weather the storm. By conducting thorough research and staying informed about market trends, investors can make well-informed decisions that align with their financial goals.