TSM Stock Analysis: Taiwan Semiconductor | NYSE
Semiconductors | NYSE, USA | Market Cap: 2.155.395m USD | 12M Return: 65.9% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 6.20B
EPS Trend: 97.4%
Qual. Beats: 6
Rev. Trend: 99.5%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
TSMC is a Taiwan-based semiconductor foundry that manufactures, packages, and tests integrated circuits for customers globally. Its wafer fabrication services cover CMOS logic, mixed-signal, radio frequency, embedded memory, and BiCMOS processes. Beyond its core manufacturing, the company also produces photomasks, provides customer and engineering support, and invests in technology start-ups. Its chips serve end markets including high performance computing, smartphones, IoT, automotive, and digital consumer electronics. Headquartered in Hsinchu City, Taiwan, TSMC was incorporated in 1987 and trades on the NYSE under the ticker TSM.
As a pure-play foundry, TSMC manufactures chips designed by external customers rather than selling its own branded products, allowing it to serve fabless semiconductor firms without competing with them. The foundry model separates chip design from fabrication, and TSMC is the largest player in this segment, serving customers across the major semiconductor end markets listed above.
- AI chip demand from Nvidia and AMD lifts advanced node revenue
- Arizona and Japan fab capex pressures near-term operating margins
- US export controls on China chip sales reshape customer mix
| Net Income: 2242b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.13 > 0.02 and ΔFCF/TA -0.63 > 1.0 |
| NWC/Revenue: 60.85% < 20% (prev 55.50%; Δ 5.35% < -1%) |
| CFO/TA 0.29 > 3% & CFO 2683b > Net Income 2242b |
| Net Debt (-2502b) to EBITDA (3198b): -0.78 < 3 |
| Current Ratio: 2.46 > 1.5 & < 3 |
| Outstanding Shares: last quarter (5.19b) vs 12m ago 0.01% < -2% |
| Gross Margin: 64.23% > 18% (prev 58.58%; Δ 5.64% > 0.5%) |
| Asset Turnover: 54.33% > 50% (prev 48.54%; Δ 5.79% > 0%) |
| Interest Coverage Ratio: 202.7 > 6 (EBIT TTM 2507b / Interest Expense TTM 12.4b) |
| A: 0.29 (Total Current Assets 4566b - Total Current Liabilities 1858b) / Total Assets 9376b |
| B: 0.65 (Retained Earnings 6051b / Total Assets 9376b) |
| C: 0.31 (EBIT TTM 2507b / Avg Total Assets 8191b) |
| D: 2.22 (Book Value of Equity 6433b / Total Liabilities 2901b) |
| Altman-Z'' = 8.38 = AAA |
| DSRI: 1.41 (Receivables 441b/238b, Revenue 4450b/3401b) |
| GMI: 0.91 (GM 58.58% / 64.23%) |
| AQI: 1.22 (AQ_t 0.05 / AQ_t-1 0.04) |
| SGI: 1.31 (Revenue 4450b / 3401b) |
| TATA: -0.05 (NI 2242b - CFO 2683b) / TA 9376b) |
| Beneish M = -2.42 (Cap -4..+1) = BBB |
As of July 28, 2026, the stock is trading at USD 399.09 with a total of 15,669,384 shares traded. Over the past week, the price has changed by -0.80%, over one month by -12.31%, over three months by -1.27% and over the past year by +65.91%.
Current recommended Stop Loss: 368.20 (which is 7.7% or 1.8 ATR below the current price).
Taiwan Semiconductor has received a consensus analysts rating of 4.59. Therefore, it is recommended to buy TSM.
- StrongBuy: 11
- Buy: 5
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 527.3 | 32.1% |
Market Cap TWD = 69680b (2155b USD * 32.328 USD.TWD)
P/E Trailing = 37.0392
P/E Forward = 26.8817
P/S = 0.4854
P/B = 11.9803
P/EG = 1.0763
Revenue TTM = 4450b TWD
EBIT TTM = 2507b TWD
EBITDA TTM = 3198b TWD
Long Term Debt = 815b TWD (from longTermDebt, last quarter)
Short Term Debt = 167b TWD (from shortTermDebt, last quarter)
Debt = 1016b TWD (from shortLongTermDebtTotal, last quarter) + Leases 33.5b
Net Debt = -2502b TWD (calculated: Debt 1016b - CCE 3518b)
Enterprise Value = 67178b TWD (69680b + Debt 1016b - CCE 3518b)
Interest Coverage Ratio = 202.7 (Ebit TTM 2507b / Interest Expense TTM 12.4b)
EV/FCF = 56.36x (Enterprise Value 67178b / FCF TTM 1192b)
FCF Yield = 1.77% (FCF TTM 1192b / Enterprise Value 67178b)
FCF Margin = 26.78% (FCF TTM 1192b / Revenue TTM 4450b)
Net Margin = 50.37% (Net Income TTM 2242b / Revenue TTM 4450b)
Gross Margin = 64.23% ((Revenue TTM 4450b - Cost of Revenue TTM 1592b) / Revenue TTM)
Gross Margin QoQ = 67.72% (prev 66.25%)
Tobins Q-Ratio = 7.17 (Enterprise Value 67178b / Total Assets 9376b)
Interest Expense / Debt = 1.22% (Interest Expense 12.4b / Debt 1016b)
Taxrate = 16.16% (432b / 2674b)
NOPAT = 2102b (EBIT 2507b * (1 - 16.16%))
Current Ratio = 2.46 (Total Current Assets 4566b / Total Current Liabilities 1858b)
Debt / Equity = 0.16 (Debt 1016b / totalStockholderEquity, last quarter 6433b)
Debt / EBITDA = -0.78 (Net Debt -2502b / EBITDA 3198b)
Debt / FCF = -2.10 (Net Debt -2502b / FCF TTM 1192b)
Total Stockholder Equity = 5681b (last 4 quarters mean from totalStockholderEquity)
RoA = 27.37% (Net Income 2242b / Total Assets 9376b)
RoE = 39.46% (Net Income TTM 2242b / Total Stockholder Equity 5681b)
RoCE = 38.60% (EBIT 2507b / Capital Employed (Equity 5681b + L.T.Debt 815b))
RoIC = 28.17% (NOPAT 2102b / Invested Capital 7463b)
WACC = 11.83% (E(69680b)/V(70696b) * Re(11.99%) + D(1016b)/V(70696b) * Rd(1.22%) * (1-Tc(0.16)))
Discount Rate = 11.99% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 46.53 | Cagr: 0.00%
[DCF] Terminal Value 67.56% ; FCFF base≈1089b ; Y1≈1248b ; Y5≈1837b
[DCF] Fair Price = 3.77k (EV 17076b - Net Debt -2502b = Equity 19578b / Shares 5.19b; r=11.83% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 97.36 | EPS CAGR: 44.37% | SUE: 4.0 | # QB: 6
Revenue Correlation: 99.47 | Revenue CAGR: 32.78% | SUE: 0.02 | # QB: 0
EPS current Quarter (2026-09-30): EPS=4.50 | Chg30d=+8.78% | Revisions=+50% | Analysts=6
EPS current Year (2026-12-31): EPS=16.70 | Chg30d=+5.91% | Revisions=+50% | GrowthEPS=+56.8% | GrowthRev=+41.8%
EPS next Year (2027-12-31): EPS=21.29 | Chg30d=+8.28% | Revisions=+57% | GrowthEPS=+27.5% | GrowthRev=+31.3%
[Analyst] Revisions Ratio: +77% (up=10, down=0)