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Taiwan Semiconductor Manufacturing (TSM) Stock

Taiwan Semiconductor Manufacturing Stock Details, Movements and Public Alerts

Taiwan Semi Stock: The AI Arms Dealer Powering the Revolution

TSMC commands 67% of the global foundry market with a $1.3 trillion valuation. The company expects 25% revenue growth in 2025 as AI chip demand doubles, investing $38-42 billion in advanced manufacturing.

  • •
    Core Strengths:67% foundry market share, 2nm leadership, AI revenue doubling, customer diversity
  • •
    Main Risks:Geopolitical tensions, customer concentration, capex intensity, China restrictions
  • •
    Bottom Line:Essential AI infrastructure play with unmatched manufacturing prowess

Market Cap

$1.20T

52-Week High

$264.58

-1.97% from high

52-Week Low

$133.76

+93.91% from low

Avg Daily Volume

11,807,024

100-day average

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

25.37

Above market average

Forward P/E

23.75

Earnings expected to grow

PEG Ratio

1.42

Reasonably valued

Price to Book

8.00

EV/EBITDA

11.46

EPS (TTM)

$9.10

Price to Sales

0.35

Beta

1.20

Similar volatility to market

How is TSM valued relative to its earnings and growth?
Taiwan Semiconductor Manufacturing trades at a P/E ratio of 25.37, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 23.75 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.42 indicates reasonable value when growth is considered.
What is TSM's risk profile compared to the market?
With a beta of 1.20, Taiwan Semiconductor Manufacturing is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 8.00 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

42.50%

Operating Margin

49.60%

Return on Equity

34.20%

Return on Assets

16.00%

Revenue Growth (YoY)

38.60%

Earnings Growth (YoY)

60.70%

How profitable and efficient is TSM's business model?
Taiwan Semiconductor Manufacturing achieves a profit margin of 42.50%, meaning it retains $42.50 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 49.60% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 34.20% and ROA at 16.00%, the company generates strong returns on invested capital.
What are TSM's recent growth trends?
Taiwan Semiconductor Manufacturing's revenue grew by 38.60% year-over-year, representing robust expansion that significantly outpaces typical market growth rates. This strong top-line performance suggests the company is successfully capturing market share or benefiting from favorable industry trends. Earnings increased by 60.70% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against SEMICONDUCTORS & RELATED DEVICES industry averages for proper context.

Dividend Information

Dividend Per Share

$19.00

Dividend Yield

1.45%

Ex-Dividend Date

9/16/2025

Dividend Date

1/8/2026

What dividend income can investors expect from TSM?
Taiwan Semiconductor Manufacturing offers a dividend yield of 1.45%, paying $19.00 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of 9/16/2025.
How reliable is TSM's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Taiwan Semiconductor Manufacturing pays $19.00 per share in dividends against earnings of $9.10 per share, resulting in a payout ratio of 100.00%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut. The next dividend payment is scheduled for 1/8/2026.

Company Size & Market

Shares Outstanding

5.19B

Book Value/Share

$176.65

Asset Type

Common Stock

What is TSM's market capitalization and position?
Taiwan Semiconductor Manufacturing has a market capitalization of $1.20T, classifying it as a mega-cap stock (over $200B). These are the largest, most established companies globally, typically offering stability and liquidity but with more modest growth potential. Mega-caps often pay dividends and weather economic downturns better than smaller companies. With 5.19B shares outstanding, the company's ownership is widely distributed. As a major player in the SEMICONDUCTORS & RELATED DEVICES industry, it competes with other firms in this sector.
How does TSM's price compare to its book value?
Taiwan Semiconductor Manufacturing's book value per share is $176.65, while the current stock price is $259.38, resulting in a price-to-book (P/B) ratio of 1.47. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$269.76

4.00% upside potential

Analyst Recommendations

Strong Buy

5

Buy

11

Hold

1

Sell

0

Strong Sell

0

How reliable are analyst predictions for TSM?
17 analysts cover TSM with 94% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $269.76 implies 4.0% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on TSM?
Current analyst recommendations:5 Strong Buy, 11 Buy, 1 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Sep 1, 2025, 06:31 AM

Earnings Dates

Upcoming Earnings

Q3

Oct 16, 2025

Est. EPS: $2.66

In 32 days

Recent Earnings History

DateQuarterEstimated EPSActual EPSSurprise
Jul 17, 2025Q2$2.31$2.47+6.9%
Apr 17, 2025Q1$2.05$2.12+3.4%
Jan 16, 2025Q4$2.22$2.24+0.9%
Oct 17, 2024Q3$1.79$1.94+8.4%
Jul 18, 2024Q2$1.43$1.48+3.5%
Apr 18, 2024Q1$1.32$1.38+4.5%
Feb 19, 2024Q4$1.37$1.45+5.8%
Oct 19, 2023Q3$1.17$1.29+10.3%

Technical Indicators

RSI (14-day)

68.45

Neutral

50-Day Moving Average

$238.68

8.67% above MA-50

200-Day Moving Average

$202.46

28.11% above MA-200

MACD Line

5.40

MACD Signal

2.64

MACD Histogram

2.75

Bullish

What does TSM's RSI value tell investors?
The RSI (Relative Strength Index) for TSM is currently 68.45, indicating the stock is showing bullish momentum (60-70 range). The stock has positive momentum without being extremely overbought. This zone often occurs during healthy uptrends where buyers remain in control. Combined with the price being above the 50-day moving average, this confirms bullish conditions.
How should traders interpret TSM's MACD and moving average crossovers?
MACD analysis shows the MACD line at 5.40 above the signal line at 2.64, with histogram at 2.75. This bullish crossover suggests upward momentum is building. The wide histogram confirms strong momentum. The 50-day MA ($238.68) is above the 200-day MA ($202.46), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently above both MAs, confirming strength.

Indicators last updated: Sep 14, 2025, 12:44 AM

Active Alerts

Alert Condition
RSI Threshold Cross
Threshold
N/A
Created
Sep 13, 2025, 11:34 AM

Taiwan Semiconductor (TSM) Stock Analysis 2025 - Foundry Leader Guide

TSMC commands 67% of the global foundry market with a $1.3 trillion valuation. The company expects 25% revenue growth in 2025 as AI chip demand doubles, investing $38-42 billion in advanced manufacturing.

Why Taiwan Semiconductor? Understanding the Investment Story

The Indispensable Foundry

TSMC stands as the most critical company most people have never heard of. With 67.1% market share versus Samsung distant 8.1%, TSMC essentially monopolizes advanced chip manufacturing. Every major AI player - Nvidia, AMD, Apple, Qualcomm, Broadcom - depends on TSMC to turn their designs into silicon reality. This positions TSMC as the ultimate picks-and-shovels play in the AI gold rush.

The company reported $26.85 billion in Q4 revenue, growing 14.1% as AI accelerator revenue is expected to double year-over-year in 2025. Management forecasts AI revenue to grow at a mid-40% CAGR for five years starting from 2024. High-performance computing, which includes AI chips, now represents 53% of total revenue, fundamentally transforming TSMC from a mobile-focused foundry to an AI powerhouse.

Technology Leadership Widening

Advanced nodes below 7nm drove 73% of wafer revenue, with 3nm contributing 22% and 5nm representing 36%. The crucial 2nm node enters volume production in H2 2025, with early tape-outs already exceeding 3nm and 5nm combined. This technology leadership creates a virtuous cycle - the most advanced chips require the most advanced manufacturing, which only TSMC can provide at scale.

Valuation: Reasonable for Monopolistic Position

Trading at 24 times forward earnings with a PEG ratio below 0.7, TSMC appears undervalued relative to growth. Stocks with PEG ratios below 1 are typically considered cheap, and TSMC trades at a significant discount despite its monopolistic position. The market seems to be pricing in excessive geopolitical risk, creating opportunity for investors who believe Taiwan remains stable.

Opportunities for 2025 and Beyond

The $42 Billion Expansion

TSMC plans capital expenditures between $38-42 billion in 2025, up 28-41% year-over-year. This massive investment ensures capacity for the AI boom while maintaining technology leadership. New fabs in Arizona, Japan, and Europe diversify geographic risk while maintaining Taiwan as the innovation hub. The company essentially prints money with these investments, generating returns exceeding 25% on invested capital.

CoWoS Advanced Packaging Dominance

Beyond leading-edge logic, TSMC dominates CoWoS advanced packaging crucial for AI chips. This technology enables the massive chips powering AI by connecting multiple dies into single packages. With capacity booked through 2026, TSMC controls another bottleneck in the AI supply chain, further cementing its irreplaceable position.

Who Is This Stock For?

Perfect For

  • ✓AI investors seeking foundational exposure
  • ✓Long-term holders comfortable with geopolitics
  • ✓Tech bulls believing in semiconductor supercycle
  • ✓Diversified portfolio builders

Less Suitable For

  • ✗Investors worried about China-Taiwan tensions
  • ✗Short-term traders seeking quick gains
  • ✗Those uncomfortable with foreign stocks
  • ✗Risk-averse retirees

Investment Recommendation

Conclusion

TSMC represents the safest way to play the AI revolution, serving as the essential manufacturer for every major chip designer. The company monopolistic position, technology leadership, and reasonable valuation create a compelling investment despite geopolitical concerns. As the AI arms dealer selling to all sides, TSMC wins regardless of which companies dominate AI chips. Geographic diversification reduces Taiwan risk while maintaining the innovation advantages.

2025 Price Target
$280-310
Upside Potential
+35-50%
Risk Level
Moderate-High
Recommendation
Buy < $220

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