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:2026-04-30 17:45:02
Analysis data includes financial metrics (net income growth, margins, ROE-TTM, P/E, PEG ratio, current ratio, debt-to-asset ratio), technical indicators (moving averages, RSI, volume, ATR), and market data (price levels, analyst consensus). Data time range includes recent performance up to 2026-04-30, with specific volume data from 2026-04-24.
Summary

Trading strategy overview: Taiwan Semiconductor Manufactur (TSM) is recommended as a BUY with a target price of $485.00 (22.5% upside from current $396.06). Stop-loss price is set at $369.00. Confidence level in this decision is 0.82, and the risk score is 0.65, indicating moderate-high risk.

Operation strategy
  • Entry Zone: $386-$390 (near 10-day SMA support)
  • Stop-Loss: $369 (below 20-day SMA and recent consolidation low)
  • Position Sizing: Conservative given elevated volatility (ATR: $13.41)
  • Time Horizon: 6-12 months for fundamental re-rating to occur

Core Support

Reasoning summary
  • Fundamental Strength Justifies Premium Valuation: TSM demonstrates accelerating profitability with 46.42% net income growth (2025), expanding net margins from 40.51% to 45.03%, and ROE-TTM of 35.39%. With P/E of 32.60 and net income growth of 46%, the PEG ratio of ~0.71 signals undervaluation relative to growth potential.
  • Structural AI Demand Supports Sustainable Growth: TSM serves as the indispensable bottleneck for advanced AI chips, with demand confirmed as accelerating by industry leaders. AI infrastructure build-out represents a structural shift, not a cyclical peak, supporting sustained growth beyond current projections.
  • Strategic Risk Mitigation in Place: 30-year corporate power purchase agreement with Northland Power provides long-term energy cost stability, directly addressing margin pressure concerns. Geographic diversification through expansion to US, Japan, and Germany facilities mitigates geopolitical risk.
  • Technical Setup Supports Near-Term Upside: All moving averages (5-day > 10-day > 20-day > 60-day) confirm established uptrend. RSI at 62.78 shows strength without extreme overbought conditions. Recent rally accompanied by high volume (21.56M shares on 2026-04-24) indicates institutional participation.
  • Target Price Derivation: The $485 target price is derived from applying P/E multiple of 36.5 (modest expansion from current 32.6) to forward earnings, justified by 46% growth rate and PEG normalization toward 1.0. It aligns with analyst consensus while accounting for recent price movement and technical projections.
  • Key Risk Factors Acknowledged: Geopolitical exposure in Taiwan Strait remains unhedgeable but is partially priced into valuation. Profit-taking pressure from 85.35% of recent traders in profit creates near-term volatility risk. Input cost inflation from helium shortages and material costs requires monitoring but is mitigated by pricing power.