Taiwan Semiconductor Manufactur(TSM) - Stock detail

Taiwan Semiconductor Manufactur

US
TSM
Taiwan Semiconductor Manufacturing Company Limited(Listing date: 10/08/1997)

Taiwan Semiconductor Manufacturing Co., Ltd. is a joint venture between the Taiwan Provincial Government of China, Philips, and other private investors, registered in Taiwan Province of China on February 21, 1987. The company is currently the world's largest LED wafer foundry in the global semiconductor industry. As a foundry, the company manufactures semiconductors using its manufacturing processes based on customers' own or third-party proprietary integrated circuit designs. It offers a comprehensive range of wafer manufacturing processes, including those for manufacturing CMOS logic, mixed-signal, radio frequency, embedded memory, BiCMOS mixed-signal and other semiconductors. The company also provides design, mask making, probing, testing and assembly services.

AI Trading DecisionBuy
Generated at:2026-03-13 17:50:15
Analysis based on TSM financial metrics including P/E ratio of 34.38x, net margins of 45.03%, ROE of 35.39%, EPS growth of 46.42%, revenue growth of 31.61% YoY to $3.8 trillion, gross margins of 59.89%, current ratio of 2.62, debt-to-asset ratio of 31.16%. Technical analysis includes current price $338.31, 60-day MA at $336.58, lower Bollinger Band at $331.28, RSI at 42.68, KDJ J-value at 17.50, 90% cost range of $327.81-$382.06, ATR of 13.34. Data covers fundamental, technical, and geopolitical factors affecting TSM performance.
Summary

Trading strategy overview: Target price $400 (20.3% upside from current $338.31), stop-loss price $315, confidence level 0.78, risk score 0.65. TSM represents a compelling buy opportunity with exceptional fundamentals and structural AI growth drivers, though elevated geopolitical risks require careful position sizing.

Operation strategy
  • Target price of $400 based on 34x forward P/E applied to conservative growth estimates
  • Stop-loss set at $315 below critical $319-325 support zone
  • Position size limited to 3-5% of portfolio maximum
  • Scaling strategy: 50% initial position, 50% on breakout above $355 or further weakness to $325
  • 1-month tactical target: $355-370
  • 3-6 month primary target: $400
  • 12-month optimistic target: $420-430

Core Support

Reasoning summary
  • TSM's current P/E of 34.38x is justified by exceptional financial metrics: 45.03% net margins, 35.39% ROE, and 46.42% EPS growth
  • Company demonstrates world-class profitability with 31.61% YoY revenue growth to $3.8 trillion, expanding gross margins to 59.89%
  • Financial health is robust with current ratio of 2.62 and conservative 31.16% debt-to-asset ratio
  • AI structural growth outweighs cyclical concerns - TSM benefits from AI revolution regardless of chip designer
  • Current price of $338.31 is testing critical support at 60-day MA with RSI at 42.68 showing oversold conditions
  • Geopolitical risks are manageable with diversified sourcing and strategic stockpiles
  • Technical measured move from support base to previous resistance zone supports $400 target
  • Premium valuation justified by 20%+ annual growth trajectory and AI dominance