Taiwan Semiconductor Manufactur TSM
TSMC is the world's largest semiconductor foundry, manufacturing advanced chips for clients like Apple, Nvidia, and AMD, being a key supplier in the global technology supply chain. TSMC shows exceptional financial health (net cash, 60.34% operating margin) and explosive growth (revenue +36%, earnings +77.4%) driven by AI, with a 39.97% ROE justifying its quality premium. However, its valuation (P/E 33.55) already discounts much of this growth, and the geopolitical risk of Taiwan is a structural drag.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
TSMC is the world's largest semiconductor foundry, manufacturing advanced chips for clients like Apple, Nvidia, and AMD, being a key supplier in the global technology supply chain. TSMC shows exceptional financial health (net cash, 60.34% operating margin) and explosive growth (revenue +36%, earnings +77.4%) driven by AI, with a 39.97% ROE justifying its quality premium. However, its valuation (P/E 33.55) already discounts much of this growth, and the geopolitical risk of Taiwan is a structural drag.
Score by category
| Category | Score |
|---|---|
| Financial health | 9.2 |
| Quality / Moat | 8.5 |
| Valuation | 5.2 |
| Growth | 7.2 |
| Dividend | 4.9 |
| Momentum | 8.2 |
| Risk & Context | 3.6 |
OVERALL SCORE: 6.8/10
Context and risks
Extreme geopolitical risk due to the concentration of production in Taiwan, with rising US-China tension. The company is at the center of the tech and chip war, with risk of supply disruption or state control. Expansion to Singapore and the US partially mitigates, but the primary jurisdiction risk remains.
News considered in the analysis
- TSMC Affiliate Plans Second Singapore Chip Plant in Asia Push — Expansión de capacidad en Singapur, refuerza la estrategia de diversificación geográfica fuera de Taiwán, pero es un plan a medio plazo con impacto limitado en beneficios a corto plazo.
- TSMC 2nm wafer capacity to exceed earlier estimates, EDN reports — Mayor capacidad de obleas de 2nm de lo estimado refuerza el liderazgo tecnológico y la posición para capturar la demanda de IA, un factor material para el crecimiento futuro.
- Price Prediction: TSMC Could Reach $600 as Capacity Constraints Drive the AI Boom Forward — Proyección de precio objetivo de analista, refleja el optimismo por la IA pero es especulativa y no aporta información nueva sobre fundamentales.
- Is Taiwan Semiconductor Manufacturing (NYSE:TSM) Priced For Perfection Or Still A Bargain? — Artículo de opinión sobre valoración, sin información nueva relevante.
- The Zacks Analyst Blog Highlights Analog Devices, Semtech, Taiwan Semiconductor and ASM — Listículo de Zacks, sin información nueva relevante.
Verdict: Hold. Quality and growth are top-tier, but geopolitical risk and a demanding valuation limit the upside potential in the short term.
Main risk: Extreme geopolitical risk due to the concentration of production in Taiwan, which could disrupt the global semiconductor supply chain and severely impact TSMC's operations.
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