Skip to Content
Morningstar

Taiwan Semiconductor Manufacturing Co Ltd 2330

Morningstar Rating
Unlock
Stock XTAI Rating as of
TWD 766.00 −17.00 (2.17%)
View Full Chart
As of Delayed Price Closed
Unlock our analysis with Morningstar Investor
Start Free Trial

Company Report

View Archive

TSMC Earnings: Shares Cheap as Cautious Capital Spending and Industry Outlook Dent Sentiment

Phelix Lee

We keep our TWD 950 per share fair value estimate for wide-moat Taiwan Semiconductor Manufacturing (lowered to USD 146 per ADR from USD 151 with an updated exchange rate) as there is no change in the company’s long-term thesis. TSMC’s disciplined approach to capital spending in 2024—and possibly in the next few years—reduces risks of oversupply, and allows more flexibility in cutting-edge research to maintain its leadership. TSMC’s shares remain attractive, as artificial intelligence-related demand continues to pleasantly surprise us, and there is limited downside to sentiment for the automotive and industrial markets.

Read Full Report

Price vs Fair Value

View History
2330 is trading at a 21% discount.
Price
TWD 754.00
Fair Value
TWD 323.00
Uncertainty
Medium
1-Star Price
TWD 6,337.80
5-Star Price
TWD 995.00
Economic Moat
Mbdfv
Capital Allocation
Ylbxmgqsgb

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 2330 is a good fit for your portfolio.
Get 7 Days Free

News

View All

Trading Information

Previous Close Price
TWD 770.00
Day Range
TWD 765.00–774.00
52-Week Range
TWD 489.00–826.00
Bid/Ask
TWD 766.00 / TWD 767.00
Market Cap
TWD 19.87 Tril
Volume/Avg
28.5 Mil / 43.9 Mil

Key Statistics

Price/Earnings (Normalized)
24.33
Price/Sales
9.39
Dividend Yield (Trailing)
1.56%
Dividend Yield (Forward)
1.79%
Total Yield
1.56%

Company Profile

Taiwan Semiconductor Manufacturing Co. is the world's largest dedicated chip foundry, with almost 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
2330
GFS
005930
Price/Earnings (Normalized)
 24.3320.4637.11
Price/Book Value
 5.922.361.51
Price/Sales
 9.393.561.81
Price/Cash Flow
 15.849.999.46
Price/Earnings
2330
GFS
005930

Financial Strength

Metric
2330
GFS
005930
Quick Ratio
 2.031.561.79
Current Ratio
 2.332.112.59
Interest Coverage
 77.59—8.15
Quick Ratio
2330
GFS
005930

Profitability

Metric
2330
GFS
005930
Return on Assets (Normalized)
 16.17%7.23%4.31%
Return on Equity (Normalized)
 26.53%12.66%5.57%
Return on Invested Capital (Normalized)
 19.43%9.89%4.52%
Return on Assets
2330
GFS
005930
See how this stock stacks up to its competitors with Morningstar Investor
Start Free Trial

Semiconductors Industry Comparables

Screen in Investor
Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
NVDA
NVIDIA CorpGqpqnrdfXtdz$2.1 Tril
TSM
Taiwan Semiconductor Manufacturing Co Ltd ADRVdmlkvyfXtck$599.8 Bil
AVGO
Broadcom IncSysglzrgfbTryb$578.9 Bil
AMD
Advanced Micro Devices IncXrbxphtyDscrphz$245.2 Bil
QCOM
Qualcomm IncQcqbqcpNkyrzr$180.1 Bil
TXN
Texas Instruments IncRdkwmjqxjCsgc$159.1 Bil
INTC
Intel CorpKcctltjXtsdv$145.9 Bil
MU
Micron Technology IncBsnfqxsySgp$124.5 Bil
ARM
ARM Holdings PLC ADRGlzzzctGpsb$102.7 Bil
ADI
Analog Devices IncTjpssjkkhWvbzc$92.4 Bil

Sponsor Center