The company's fundamentals are relatively very healthy. Its valuation is considered fairly valued,and institutional recognition is very high. Over the past 30 days, multiple analysts have rated the company as a Buy. Despite an average stock market performance, the company shows 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 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.
The company's current financial score is 7.20, which is lower than the Technology Equipment industry's average of 7.21. Its financial status is robust, and its operating efficiency is average. Its latest quarterly revenue reached 25.53B, representing a year-over-year increase of 35.33%, while its net profit experienced a year-over-year increase of 53.23%.
The company’s current valuation score is 5.60, which is higher than the Technology Equipment industry's average of 3.20. Its current P/E ratio is 27.23, which is 0.88% below the recent high of 27.47 and 42.59% above the recent low of 15.63.
The company’s current earnings forecast score is 8.70, which is higher than the Technology Equipment industry's average of 7.53. The average price target for Taiwan Semiconductor Manufacturing Co Ltd is 274.00, with a high of 300.00 and a low of 205.00.
Data disclaimer: Analyst ratings and target prices are provided by LSEG for informational purposes only and do not constitute investment advice.
The company’s current price momentum score is 9.15, which is higher than the Technology Equipment industry's average of 8.05. Sideways: Currently, the stock price is trading between the resistance level at 250.19 and the support level at 226.05, making it suitable for range-bound swing trading.
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The company’s current institutional recognition score is 3.00, which is lower than the Technology Equipment industry's average of 6.97. The latest institutional shareholding proportion is 16.36%, representing a quarter-over-quarter decrease of 0.59%. The largest institutional shareholder is Ken Fisher, holding a total of 17.66M shares, representing 0.34% of shares outstanding, with 37.69% decrease in holdings.
The U.S. Dollar Index is currently in a neutral state, which has a neutral effect on the Technology Equipment export-driven industry. The Dollar Index (DXY) measures the value of the U.S. dollar against a basket of major currencies, including the euro, yen, pound sterling, Canadian dollar, Swedish krona, and Swiss franc. The company’s current risk assessment score is 4.68, which is higher than the Technology Equipment industry's average of 3.91. The company's beta value is 1.24. This indicates that the stock tends to outperform the index during upward trending markets but experiences larger declines during downward trending markets.
The Stock Score data is powered by TradingKey and updated daily. Rating data is sourced from LESG. Please use the data with caution for reference purposes only.