Taiwan Semiconductor Manufacturing Company Ltd. (TSM) Stock
Taiwan Semiconductor Manufacturing Company Ltd. (TSM) is a Technology stock trading at $428.63 (as of 2026-09-04). Figures are sourced from first-party U.S. SEC EDGAR filings and market data.
Taiwan Semiconductor Manufacturing Company Limited (TSMC) manufactures, packages, and tests integrated circuits and other semiconductor devices, providing wafer fabrication processes and related customer/engineering support. Its products and services support customers across regions including Taiwan, China, Europe, Japan, and the United States.
Understand Taiwan Semiconductor Manufacturing Company Ltd.: how it makes money
TSMC manufactures, packages, tests, and sells integrated circuits and other semiconductor devices, making money from chip fabrication and related packaging and testing services.
TSMC's profit model is a scale business, spreading wafer-fabrication and process costs across customer volumes to produce a 56% gross margin and a 46% operating margin.
Business quality (Exceptional): Exceptional business quality, supported by a 56% gross margin and a 46% operating margin, but overseas expansion and new-node ramps can pressure profitability.
Bull case
AI demand supports growth: Management says cloud customers provided evidence that AI is driving healthy business growth, and AI accelerator revenue is forecast to grow at a mid-to-high 50% CAGR. That could sustain demand for TSMC's advanced manufacturing and support further growth.
New nodes attract customers: Management says N2 and A16 entered or are scheduled for high-volume production with strong demand. Successful execution could reinforce TSMC's technology position and support future customer volumes.
Bear case
Expansion pressures gross margins: Management expects overseas fab expansion to cause increasing gross-margin dilution, and the initial N2 ramp is expected to dilute gross margin. That could reduce how much of strong demand reaches operating profit.
New capacity arrives slowly: Management says new capacity will contribute little in the near term, leaving supply tight. That could limit how quickly TSMC converts AI demand into additional shipments and revenue.
Tariffs threaten consumer demand: Management says tariffs and rising component prices create uncertainty, especially in consumer markets. That uncertainty could weaken demand or squeeze economics in consumer-facing parts of the business.
Valuation — source: SEC EDGAR (first-party)
Price
$428.63
DCF Value (model)
$637.74
DCF Upside vs Price
48.8%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)
$2.89T
Net Margin
40.0%
Return on Equity
27.0%
Debt / Equity
0.01
Current Ratio
2.36
Revenue Growth (YoY)
33.9%
EPS Growth (YoY)
36.0%
Financial Health — source: SEC EDGAR
Piotroski F-Score
7/9 (strong)
Valuation vs Sector & Industry
Sector P/E (Technology)
32.1
Industry P/E (Electronic Equipment)
37.1
Company
Sector
Technology
Industry
Electronic Equipment
CEO
C. C. Wei
Employees
65,152
Country
TW
IPO Date
1997-10-09
Taiwan Semiconductor Manufacturing Company Ltd. earnings call transcripts