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Taiwan Semiconductor Manufacturing Co Ltd

TSM
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436.720USD
-30.950-6.62%
Close 06/23, 16:00ETQuotes delayed by 15 min
2.27TMarket Cap
36.39P/E TTM

TradingKey Stock Score of Taiwan Semiconductor Manufacturing Co Ltd

Currency: USD Updated: 2026-06-23

Key Insights

Taiwan Semiconductor Manufacturing Co Ltd's fundamentals are relatively healthy, and its growth potential is high.Its valuation is considered fairly valued, ranking 56 out of 105 in the Semiconductors & Semiconductor Equipment industry.Institutional ownership is very high.Over the past month, multiple analysts have rated it as Buy, with the highest price target at 462.82.In the medium term, the stock price is expected to trend up.The company has been performing well in the stock market over the past month, which is supported by its strong fundamentals and technicals.The stock price is trading sideways between the support and resistance levels, making it suitable for range-bound swing trading.

Taiwan Semiconductor Manufacturing Co Ltd's Score

Industry at a Glance

Industry Ranking
56 / 105
Overall Ranking
216 / 4573
Industry
Semiconductors & Semiconductor Equipment

Support & Resistance

Relevant data have not been disclosed by the company yet.

Score Analysis

Current score
Previous score

Media Coverage

Last 24 hours
Coverage Level

Very Low
Very High
Positive

Taiwan Semiconductor Manufacturing Co Ltd Highlights

StrengthsRisks

Taiwan Semiconductor Manufacturing Company Limited is a leading Taiwanese multinational firm specializing in semiconductor contract manufacturing and design services. Recognized as one of the most valuable semiconductor firms globally, it stands as the largest dedicated independent semiconductor foundry and is considered Taiwan's most significant company, with its headquarters and primary operations situated in the Hsinchu Science Park in Hsinchu, Taiwan. While the Taiwanese government remains the largest single shareholder, a substantial portion of TSMC is owned by international investors. In 2023, the company secured the 44th position on the Forbes Global 2000 list. Taiwan's exports of integrated circuits reached $184 billion in 2022, contributing nearly 25 percent to the nation's GDP. TSMC accounts for roughly 30 percent of the main index of the Taiwan Stock Exchange.

Established in 1987 by Morris Chang, TSMC became the world's first dedicated semiconductor foundry and has consistently led the industry ever since. Upon Chang’s retirement in 2018 after three decades of leadership, Mark Liu assumed the role of chairman, while C. C. Wei became the Chief Executive Officer. The company has been publicly traded on the Taiwan Stock Exchange since 1993 and was the first Taiwanese entity listed on the New York Stock Exchange in 1997. TSMC has recorded a compound annual growth rate (CAGR) of 17.4 percent in revenue and 16.1 percent in earnings since 1994.

Numerous fabless semiconductor companies, including AMD, Apple, ARM, Broadcom, Marvell, MediaTek, Qualcomm, and Nvidia, rely on TSMC for their production needs, alongside up-and-coming firms such as Allwinner Technology, HiSilicon, Spectra7, and UNISOC. Companies specializing in programmable logic devices, Xilinx and previously Altera, also utilize TSMC's foundry services. Additionally, several integrated device manufacturers with their own fabrication plants, including Intel, NXP, STMicroelectronics, and Texas Instruments, outsource part of their production to TSMC. In fact, semiconductor company LSI re-sells TSMC wafers through its ASIC design services and design IP portfolio.

TSMC pioneered the market in 7-nanometer and 5-nanometer production capabilities and was the first to commercially implement extreme ultraviolet lithography technology developed by ASML at high volumes.

Industry Leader
The company's revenue leads the industry, with the latest annual revenue totaling USD 122.22B.
High Growth
The company's revenue has grown steadily over the past 3 years, averaging 76.07% year-on-year.
High Profit Growth
The company's net income leads the industry, with the latest annual income totaling USD 122.22B.
High Dividend
The company is a high dividend payer, with the latest dividend payout ratio of 9.95%.
Stable Dividend
The company has regularly paid dividends over the past 5 years, with the latest dividend payout ratio of 9.95%.
Overvalued
The company’s latest PB is 12.27, at a high 3-year percentile range.
Institutional Selling
The latest institutional holdings are 814.63M shares, decreasing 5.42% quarter-over-quarter.
Held by Scott Black
Star Investor Scott Black holds 38.23K shares of this stock.

Analyst Rating

Based on 22 analysts
Buy
Current Rating
462.818
Target Price
-1.04%
Upside Space
Data disclaimer: Analyst ratings and target prices are provided by LSEG for informational purposes only and do not constitute investment advice.

FAQs

How does TradingKey generate the Stock Score of Taiwan Semiconductor Manufacturing Co Ltd?

The TradingKey Stock Score provides a comprehensive assessment of Taiwan Semiconductor Manufacturing Co Ltd based on 34 indicators derived from over 100 underlying data points.
These indicators are categorised into six key dimensions: financial health, company profile, earnings forecasts, price momentum, institutional confidence, and risk assessment, collectively providing investors with a thorough analysis of Taiwan Semiconductor Manufacturing Co Ltd’s performance and outlook.

How do we generate the financial health score of Taiwan Semiconductor Manufacturing Co Ltd?

To generate the financial health score of Taiwan Semiconductor Manufacturing Co Ltd, we analyse various key financial indicators across several core dimensions, including financial fundamentals, earnings quality, operational efficiency, growth potential, and shareholder returns.
By integrating these comprehensive data, the financial health score not only reflects Taiwan Semiconductor Manufacturing Co Ltd's overall stability, operational efficiency, and growth potential but also captures the investment returns delivered to shareholders. This score aims to support rational decision-making for investors and other stakeholders. A higher score indicates a better financial health of Taiwan Semiconductor Manufacturing Co Ltd.

How do we generate the company valuation score of Taiwan Semiconductor Manufacturing Co Ltd?

To generate the company valuation score of Taiwan Semiconductor Manufacturing Co Ltd, we use several key financial ratios, including P/E, P/B, P/S, and P/CF. These metrics compare Taiwan Semiconductor Manufacturing Co Ltd’s market value to its earnings, assets, sales, and cash flow, serving as core indicators for assessing company value.
By analysing these ratios in an all-round manner, the valuation score reflects not only the market’s current perception of Taiwan Semiconductor Manufacturing Co Ltd’s value but also its future profitability and growth potential, thereby supporting more informed investment decisions. A higher score indicates a fairer valuation of Taiwan Semiconductor Manufacturing Co Ltd.

How do we generate the earnings forecast score of Taiwan Semiconductor Manufacturing Co Ltd?

To calculate the earnings forecast score of Taiwan Semiconductor Manufacturing Co Ltd, we consider various key indicators such as analyst ratings, financial forecasts, support and resistance levels, and peer comparisons:
Current ratings and price targets directly reflect analysts’ expectations, while the upside space indicates their views on the stock’s growth potential.
Financial metrics like earnings per share (EPS), revenue, net income, and earnings before interest and taxes (EBIT) are core measures for assessing profitability.
By analysing the high, median, and low ranges of the target price, we can identify price trends and determine key support and resistance levels.
Comparing these indicators against peers provides context for the stock’s performance and helps anchor more realistic expectations.
These factors together form a comprehensive earnings forecast score that accurately reflects the stock’s expected financial performance and growth potential. A higher score suggests that analysts have a more optimistic outlook on Taiwan Semiconductor Manufacturing Co Ltd’s future.

How do we generate the price momentum score of Taiwan Semiconductor Manufacturing Co Ltd?

When generating the price momentum score for Taiwan Semiconductor Manufacturing Co Ltd, we examine momentum indicators including support and resistance levels as well as volume metrics.
Support levels represent price points where buying interest is strong enough to prevent further declines, while resistance levels indicate prices where selling pressure may hinder upward movement. By analysing typical price volume alongside total volume, we assess overall market activity and liquidity. These indicators help identify price trends and potential shifts, enabling more accurate predictions of future earnings.
This comprehensive approach can reflect market sentiment and enable rational forecasts of Taiwan Semiconductor Manufacturing Co Ltd’s prices. A higher score indicates a more stable short-term price trend for Taiwan Semiconductor Manufacturing Co Ltd.

How do we generate the institutional confidence score of Taiwan Semiconductor Manufacturing Co Ltd?

To generate the institutional confidence score of Taiwan Semiconductor Manufacturing Co Ltd, we analyse both the proportion of shares held by institutions and the number of shares they own. A higher institutional ownership percentage indicates strong confidence of professional investors, which is generally a positive signal about Taiwan Semiconductor Manufacturing Co Ltd’s potential. By examining the number of shares held, we gain deeper insight into institutions’ commitment and attitude toward the stock, as institutional investors typically conduct thorough analysis before making investment decisions. Understanding institutional confidence helps us refine earnings forecasts and provides a more reliable perspective on the company’s future performance and market stability. A higher score indicates greater institutional endorsement of Taiwan Semiconductor Manufacturing Co Ltd.

How do we generate the risk management score of Taiwan Semiconductor Manufacturing Co Ltd?

To assess the risk management score of Taiwan Semiconductor Manufacturing Co Ltd, we examine multiple key indicators related to returns, risk, volatility, and liquidity.
The highest and lowest daily returns reflect the potential size of gains and losses, while the Sharpe ratio measures risk-adjusted return performance. On the risk side, we analyse maximum drawdown and the return-to-drawdown ratio to identify extreme loss scenarios. Skewness helps assess the distribution of returns and whether performance may be biased. Volatility indicators—such as realised volatility and standardised true range—reveal price fluctuations. Downside risk-adjusted returns provide insight into potential losses and gains. Lastly, liquidity metrics like average turnover rate and turnover deviation indicate how actively the stock is traded.
These indicators together provide a multi-dimensional understanding of Taiwan Semiconductor Manufacturing Co Ltd’s risk-return profile, serving as core factors of the risk management score. A higher score indicates lower risk on the side of Taiwan Semiconductor Manufacturing Co Ltd.
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