Skip to Content

Taiwan Semiconductor Manufacturing Co Ltd ADR TSM

Morningstar Rating
$168.43 +2.68 (1.62%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

TSMC Earnings: Negative News and Upbeat Guidance Create Entry Opportunity

We are maintaining our TWD 1,380/USD 213 fair value estimate for wide-moat Taiwan Semiconductor Manufacturing Co. after the company reported second-quarter results and third-quarter guidance that was on track with our full-year estimates and more bullish than PitchBook consensus. Negative news like US presidential candidate Donald Trump's remarks on Taiwan and a Bloomberg article on possible new export restrictions should have limited direct impact on TSMC's operations, as most of the chipmaker's direct customers are from the US or Taiwan. We see this week's pullback as an entry point for investors seeking an inexpensive way to gain exposure to artificial intelligence and overall semiconductor growth.

Price vs Fair Value

TSM is trading at a 112% premium.
Price
$165.77
Fair Value
$369.00
Uncertainty
Medium
1-Star Price
$732.39
5-Star Price
$942.30
Economic Moat
Hgs
Capital Allocation
Nbnkmndwh

Bulls Say, Bears Say

Bulls

TSMC should consistently earn higher gross margins than competitors thanks to its economies of scale and premium pricing justified by cutting-edge process technologies.

Bears

Although TSMC is the foundry leader, each generation of process technology matures and commoditizes quickly, forcing the company to deal with pricing pressure.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if TSM is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$165.75
Day Range
$166.19170.88
52-Week Range
$84.02193.36
Bid/Ask
$168.38 / $168.44
Market Cap
$874.22 Bil
Volume/Avg
12.2 Mil / 15.8 Mil

Key Statistics

Price/Earnings (Normalized)
32.10
Price/Sales
12.02
Dividend Yield (Trailing)
1.23%
Dividend Yield (Forward)
1.49%
Total Yield
1.23%

Company Profile

Taiwan Semiconductor Manufacturing Co. is the world's largest dedicated chip foundry, with over 60% market share. TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public as an ADR in the U.S. in 1997. TSMC's scale and high-quality technology allow the firm to generate solid operating margins, even in the highly competitive foundry business. Furthermore, the shift to the fabless business model has created tailwinds for TSMC. The foundry leader has an illustrious customer base, including Apple, AMD, and Nvidia, that looks to apply cutting-edge process technologies to its semiconductor designs. TSMC employs more than 73,000 people.
Sector
Technology
Industry
Semiconductors
Stock Style Box
Large Growth
Total Number of Employees
76,478

Competitors

Valuation

Metric
TSM
INTC
GFS
Price/Earnings (Normalized)
32.1026.1727.34
Price/Book Value
7.581.322.74
Price/Sales
12.022.534.35
Price/Cash Flow
19.988.1012.05
Price/Earnings
TSM
INTC
GFS

Financial Strength

Metric
TSM
INTC
GFS
Quick Ratio
2.100.911.59
Current Ratio
2.391.572.18
Interest Coverage
80.730.87
Quick Ratio
TSM
INTC
GFS

Profitability

Metric
TSM
INTC
GFS
Return on Assets (Normalized)
16.16%2.83%5.33%
Return on Equity (Normalized)
26.16%5.22%8.90%
Return on Invested Capital (Normalized)
19.14%3.23%6.62%
Return on Assets
TSM
INTC
GFS
See how this stock stacks up to its competitors with Morningstar Investor

Semiconductors Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
NVIDIA Corp
NVDA
RfpcnghmcGjp$2.9 Tril
Broadcom Inc
AVGO
NkqvwtjbsyYnfgs$732.4 Bil
Advanced Micro Devices Inc
AMD
SbvslmthSmzflk$245.0 Bil
Qualcomm Inc
QCOM
YpsxylwhGsvnxr$207.8 Bil
Texas Instruments Inc
TXN
KvrgyzvvCrjv$181.3 Bil
ARM Holdings PLC ADR
ARM
DlptkvmzkKrdt$171.2 Bil
Intel Corp
INTC
TtrkqgjqQfhv$140.4 Bil
Micron Technology Inc
MU
MfrgbjmrRmbst$126.7 Bil
Analog Devices Inc
ADI
HxxjcnbxcbHsnqg$114.7 Bil

Sponsor Center