Skip to Content
Morningstar

Taiwan Semiconductor Manufacturing Co Ltd ADR TSM

Morningstar Rating
Unlock
Stock XNYS Rating as of
$161.94 +1.66 (1.04%)
View Full Chart
As of Delayed Price Closed
Unlock our analysis with Morningstar Investor
Start Free Trial

Company Report

View Archive

TSMC Earnings: Negative News and Upbeat Guidance Create Entry Opportunity

Phelix Lee

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.

Read Full Report

Price vs Fair Value

View History
TSM is trading at a 797% premium.
Price
$161.94
Fair Value
$765.00
Uncertainty
Medium
1-Star Price
$438.96
5-Star Price
$795.50
Economic Moat
Jkc
Capital Allocation
Lvfntvsfp

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.

Show More
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.
Get 7 Days Free

News

View All

Trading Information

Previous Close Price
$160.28
Day Range
$159.19–164.59
52-Week Range
$84.02–193.47
Bid/Ask
$162.35 / $162.50
Market Cap
$839.83 Bil
Volume/Avg
13.1 Mil / 15.8 Mil

Key Statistics

Price/Earnings (Normalized)
31.36
Price/Sales
11.74
Dividend Yield (Trailing)
1.26%
Dividend Yield (Forward)
1.52%
Total Yield
1.26%

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
Website
https://www.tsmc.com

Competitors

Valuation

View More
Metric
TSM
INTC
GFS
Price/Earnings (Normalized)
 31.3624.8825.51
Price/Book Value
 7.401.262.56
Price/Sales
 11.742.404.06
Price/Cash Flow
 19.527.7011.24
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
Start Free Trial

Semiconductors Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
NVIDIA Corp
NVDA
DnshkbwwvQnws$2.8 Tril
 Broadcom Inc
AVGO
BfmdrfcwjZyt$706.0 Bil
 Advanced Micro Devices Inc
AMD
QysvmqmwyZhlrsjn$226.3 Bil
 Qualcomm Inc
QCOM
CdkkrsmtbMjwcnxg$200.9 Bil
 Texas Instruments Inc
TXN
NxbxnvtmpDqrt$184.4 Bil
 ARM Holdings PLC ADR
ARM
MkdpqqstCyvwb$156.3 Bil
 Intel Corp
INTC
GrbkqcvjGvlj$133.5 Bil
 Micron Technology Inc
MU
McyjflzYbjs$121.3 Bil
 Analog Devices Inc
ADI
CkddscywtBmqc$112.4 Bil

Sponsor Center