Taiwan Semiconductor Manufacturing Co. Ltd. (TSM)
$434.10
7.300 (1.71%)
Real Time Price
AI Analyst Consensus
75 / 100
Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) is currently trading at $426.80, reflecting a strong market position in the Technology sector. The company has demonstrated exceptional revenue growth of 35.1%, significantly outpacing industry averages. Recent insider activity indicates a moderate insider buying with net buying totaling $336.5K, suggesting confidence from management. TSM's leading role in advanced semiconductor manufacturing, particularly in cutting-edge chip production, positions it favorably to capitalize on the ongoing digital transformation and increasing demand for AI-driven computing power. Competitors like NVDA and AMD are also active in this space, but TSM's foundry model provides a unique strategic advantage.
The company's financial health appears robust, supported by its substantial market capitalization of over $2.2 trillion. While the P/E ratio of 35.58 is elevated, it is somewhat justified by its high earnings per share of $11.67 and its significant revenue growth. The dividend yield of 0.80% offers a modest income stream to investors. TSM's operational scale and technological leadership are critical competitive moats that are difficult for rivals to surmount, making it a cornerstone holding for exposure to the global semiconductor supply chain.
Price Analysis
Market Metrics
Open
$432.00
Day Range
$430.97
–
$437.85
Prev Close
$426.80
Peer Benchmarking
Valuation vs Sector (Technology)
Performance vs XLK
Sector Position Analysis
The stock's valuation metrics position it within the sector's competitive landscape, reflecting its market standing and growth trajectory relative to industry peers.
TSM Analysis
Company's Health
4/5
AI Analyst Target
+3.66% Upside
Target Price
$450.00
AI Technical Analysis
TSM's technical indicators present a bullish outlook. The stock is trading above its 50-day SMA ($391.04) and 200-day SMA ($327.29), indicating a positive medium to long-term trend. The RSI value of 61.42, classified as 'BULLISH', suggests strong upward momentum without being overextended. The MACD value of 11.32 further supports this positive sentiment, pointing towards increasing buying pressure. The price is also trading above its 20-day EMA ($417.92), reinforcing the short-term uptrend.
Key support levels are observed around the 50-day and 200-day SMAs, while the current price action suggests potential for further upside. The Stochastic indicator at 64.12 and CCI at 36.07 also lean towards bullish territory, indicating that the market is not yet overbought. Investors should monitor the $426.80 price level for potential consolidation or continuation of the upward trend, with the 50-day SMA acting as a key support zone.
ProTips
- Monitor geopolitical developments concerning Taiwan, as any instability could directly impact TSM's operations and stock price.
- TSM's price is currently trading above its 50-day and 200-day SMAs, indicating a bullish trend. Consider this support level around $391.04 for potential entry points or risk management.
- Given the high P/E ratio, ensure that TSM's revenue growth and earnings continue to meet or exceed market expectations to justify the current valuation.
Key Catalysts
Bullish
an insider an insider
Insiders have made net purchases totaling $336.5K, indicating a moderate insider buying and confidence in the company's future performance.
Source: Insider Transactions
Bullish
Continued Demand for Advanced Chip Manufacturing
Robust 35.1% revenue growth highlights strong market demand for TSM's cutting-edge semiconductor manufacturing services, particularly for AI and HPC applications.
Source: Company Financials
Bullish
Bullish Technical Momentum
TSM is trading above key moving averages (50-day and 200-day SMA) with a bullish RSI of 61.42, suggesting sustained upward price momentum.
Source: Technical Analysis
Bearish
Geopolitical Risks in Taiwan
Ongoing geopolitical tensions in the region pose a significant risk to TSM's operations and supply chain stability.
Source: Geopolitical Analysis
Bearish
Valuation Concerns
The current P/E ratio of 35.58, while supported by growth, could be a risk if future earnings growth falters or market sentiment shifts.
Source: Fundamental Analysis
Market Outlook
Over the next 6-12 months, TSM is expected to continue its upward trajectory, driven by sustained demand for advanced semiconductors essential for AI, high-performance computing, and next-generation mobile devices. The company's technological leadership and massive manufacturing capacity provide a significant competitive moat. We project TSM to potentially reach our fair value target of $450.00, supported by its strong revenue growth and positive fundamental outlook. Competitors like NVDA and AMD will continue to push innovation, but TSM's foundational role as the primary manufacturer for many of these designs remains a key strength.
Potential upside catalysts include securing new, high-volume manufacturing contracts for next-generation chip architectures and continued expansion into advanced packaging technologies. Conversely, downside risks include escalating geopolitical tensions, a significant global economic slowdown impacting tech spending, or a major technological disruption that favors a competitor's manufacturing process. However, TSM's strategic importance and ongoing investment in R&D position it well to navigate these challenges.
Key Statistics
| Market Cap | 2.21T |
| P/E Ratio | 35.58 |
| EPS (TTM) | 11.67 |
| Dividend Yield | 0.7953% |
| 52 Week High | 450.16 |
| 52 Week Low | 206.20 |
Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) exhibits strong fundamental characteristics, underscored by its impressive 35.1% revenue growth. Its P/E ratio of 35.58, while above the sector average of 25.5, is supported by a substantial EPS of $11.67 and TSM's critical role in the global semiconductor supply chain. The company's market capitalization of $2.21 trillion highlights its dominant industry position. Competitors like AVGO and QCOM operate in related but distinct segments, with TSM's pure-position foundry model offering unique value.
The company's profitability and efficiency are key strengths, though specific net profit margin data is not provided. The dividend yield of 0.80% is modest but contributes to total shareholder return. Given its technological leadership and the indispensable nature of its manufacturing capabilities for advanced chip production, TSM's valuation appears justified by its growth prospects and strategic importance in the technology ecosystem.
Earnings & Growth Analysis
While specific recent earnings beat/miss data is not available, TSM's reported revenue growth of 35.1% indicates strong top-line performance. This substantial growth suggests that the company is effectively meeting market demand for its advanced semiconductor manufacturing services. The high EPS of $11.67 further points to robust profitability. Investors should look to upcoming earnings reports for forward guidance and confirmation of continued demand for TSM's cutting-edge chip production capabilities, especially in areas like AI and high-performance computing.
Key Risks
The primary risks for TSM include geopolitical tensions related to Taiwan, which could disrupt operations or supply chains. Additionally, the company faces intense competition from other foundries and integrated device manufacturers, as well as potential cyclical downturns in the semiconductor industry. Its high valuation, reflected in the P/E ratio, also presents a risk if growth expectations are not met.
Technical Indicators
| RSI (14) | 61.42 |
| MACD | 11.32 |
| SMA 50 | 391.04 |
| SMA 200 | 327.29 |
Technical Rating
Bullish
RSI
Bullish
SMA Cross
Bullish
Price vs SMA
Bullish
MACD
Bullish
Golden Cross in effect with the 50-day SMA ($391.04) above the 200-day SMA ($327.29), price action is firmly bullish above key moving averages.
Actionable Trade Plans
Specific entry, exit, and risk management levels
Select Your Trade Bias
Risk Tolerance
Conservative
2%
Aggressive
Portfolio Value
$
Position Size: Enter portfolio size →
Entry Strategies (click to switch)
CONSERVATIVE
$391.04
Near 50 SMA support
Lower risk, wait for pullback
AGGRESSIVE
$434.10
At or near current price
Higher risk, immediate entry
Risk Management
STOP LOSS
$375.55
MAX LOSS
-4.0%
Volatility-Adjusted Stop Loss
Calculated based on RSI (61.4) and current market volatility
Profit Targets (Based on Conservative Entry)
TARGET 1
$410.59
+5% (Conservative)
-5.4% (Aggressive)
TARGET 2
$430.15
+10% (Conservative)
-0.9% (Aggressive)
TARGET 3
$449.70
+15% (Conservative)
+3.6% (Aggressive)
Consider scaling out: Take 50% profit at Target 1, 30% at Target 2, let 20% run to Target 3
Calculate Your Trade
ℹ️
Disclaimer
This AI-generated trade plan for TSM is for educational and informational purposes only and does not constitute financial advice. The analysis is based on historical data patterns and technical indicators which may not predict future results. Stock trading involves risk of loss. Verify all data independently and consult a qualified financial advisor. Generated on June 9, 2026. Growth of $10,000
Compare with Another Ticker
Monte Carlo Projection (10yr)
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Insider Trading Analysis
Source: SEC Form 4▲
Bought
$336.5K
3 Transactions
▼
Sold
$0.00
0 Transactions
●
Insiders
2
Active Traders
$
Avg Transaction
$112.2K
Moderate size
| Date | Insider | Type | Shares | Value |
|---|