TSM Stock Analysis & Forecast (2026)

Taiwan Semiconductor Manufacturing Company Limited Technology Semiconductors
$387.73
Current Price
98%
Strong Buy
Data refreshed: February 26, 2026

Key Financial Metrics

Market Cap
$2.01T
P/E Ratio (TTM)
36.8x
P/E Forward
21.6x
Revenue Growth
20.5%
Gross Margin
59.9%
Net Margin
45.1%
Return on Equity
35.2%
Debt/Equity
0.18

AI Analysis Summary

Taiwan Semiconductor Manufacturing Company Limited (TSM) is a Technology company in the Semiconductors industry with a 98% Strong Buy Score. Key strengths include Revenue Growth (20.5%), Gross Margin (59.9%), Net Margin (45.1%). Our AI evaluates 8 fundamental categories including revenue growth, margin quality, balance sheet strength, cash flow generation, return on capital, and valuation metrics.

Revenue Growth: Strong Gross Margin: Excellent Net Margin: Excellent Return on Equity: Excellent Debt/Equity: Low Risk
TSM Fundamental Analysis Report
PDF Report Preview
98%
Strong Buy Score
  • 8 Fundamental Categories Analyzed
  • Revenue & Growth Trends
  • Margin & Profitability Analysis
  • Balance Sheet Strength
  • Cash Flow Quality
  • Valuation Assessment
  • AI-Powered Investment Insights
Get Your Free TSM Report

How It Works: AI Stock Analysis in 60 Seconds

See how our AI analyzes TSM fundamentals to generate buy/sell signals and Strong Buy Scores.

Is TSM a Buy Right Now?

Based on our AI-powered fundamental analysis, TSM has a Strong Buy Score of 98%, earning a "Strong Buy" rating. This score synthesizes 8 key financial metrics to provide an objective investment signal.

Strong Buy Signal

Taiwan Semiconductor Manufacturing Company Limited demonstrates robust fundamentals across multiple categories. Key strengths include Revenue Growth (20.5%) and Gross Margin (59.9%). The stock shows characteristics typically associated with outperformers.

TSM AI Buy & Sell Signals Explained

Our AI analyzes Taiwan Semiconductor Manufacturing Company Limited's financial statements to generate buy/sell signals based on quantitative metrics, not market sentiment or news headlines. Here's what drives the 98% score:

  • Revenue Growth: 20.5% year-over-year (above average)
  • Gross Margin: 59.9% (strong pricing power)
  • Net Margin: 45.1% (highly profitable)
  • Return on Equity: 35.2% (excellent capital efficiency)

Generate the full PDF report for complete category-by-category scoring and AI-powered investment recommendations.

Key Support / Demand Zones

Technical traders can view real-time demand and supply zones for TSM on our Demand Zones page. These zones identify key price levels where institutional buying or selling has historically occurred.

With TSM currently trading at $387.73, our system monitors proximity to these critical levels and can alert you when the stock approaches support or resistance zones.

Subscribe to demand zone alerts to receive real-time notifications when TSM reaches key technical levels.

Earnings & Revenue Outlook

Taiwan Semiconductor Manufacturing Company Limited operates in the Technology sector, specifically in Semiconductors. Understanding earnings trends is crucial for forecasting TSM's trajectory.

Current revenue growth of 20.5% significantly outpaces the average company. This strong growth trajectory supports a higher valuation multiple.

Visit our Earnings Calendar to track upcoming TSM earnings dates and historical beat/miss patterns. Sign up for earnings alerts to get notified before announcements.

TSM Stock Forecast (Next 3–12 Months)

Our AI projects TSM's trajectory based on current fundamentals and historical patterns. With a 98% Strong Buy Score, here's what the data suggests:

Bullish Outlook: Taiwan Semiconductor Manufacturing Company Limited shows strong fundamental momentum. Revenue growth of 20.5% suggests continued expansion. Net margins of 45.1% indicate pricing power and operational efficiency. Stocks with similar profiles have historically outperformed over 12-month periods.

For a complete 12-month price forecast with specific bull/bear scenarios, generate the full PDF report.

Valuation Metrics (P/E, Growth, Margins)

Understanding valuation is critical for determining if TSM is fairly priced. Here's the current snapshot:

  • Market Capitalization: $2.01T
  • P/E Ratio (TTM): 36.8x (growth premium)
  • Forward P/E: 21.6x (based on analyst estimates)
  • Debt/Equity: 0.18 (conservative balance sheet)

Our AI weighs these metrics against growth rates and margin quality to determine if TSM offers compelling risk-adjusted returns at current prices.

Bull Case for TSM

Here's why investors are bullish on Taiwan Semiconductor Manufacturing Company Limited:

  • Revenue Growth (20.5%)
  • Gross Margin (59.9%)
  • Net Margin (45.1%)
  • Return on Equity (35.2%)

With a 98% Strong Buy Score, the bull case is well-supported by current fundamentals. The stock exhibits characteristics of quality compounders that tend to outperform long-term.

Bear Case & Risks for TSM

Every investment carries risk. Here are potential concerns for TSM investors:

  • Competitive pressures in Technology
  • Macroeconomic sensitivity and interest rate exposure
  • Execution risk on growth initiatives
  • Valuation compression if growth slows

The full PDF report includes a detailed bear case analysis with specific risk ratings for each category.

Summary / 12-Month Outlook

TSM Summary: Taiwan Semiconductor Manufacturing Company Limited earns a 98% Strong Buy Score based on AI analysis of fundamental data. Trading at $387.73 with a $2.01T market cap, the stock shows strong fundamentals supporting a bullish 12-month outlook.

Bull Case: Revenue Growth (20.5%), Gross Margin (59.9%)

For the complete analysis with specific price considerations, growth projections, and AI-powered buy/hold/sell recommendations, generate your free TSM PDF report.

Frequently Asked Questions about TSM

Is TSM a good buy right now?
TSM currently has a Strong Buy Score of 98% (Strong Buy). Based on AI analysis of fundamentals, TSM shows strong buy signals with solid revenue growth, margins, and return metrics. Generate a free PDF report for specific buy/hold/sell recommendations.
What is the TSM stock forecast for 2026?
Our AI forecasts TSM based on current fundamentals: revenue growth of 20.5%, net margin of 45.1%, and P/E of 36.8x. The 98% Strong Buy Score reflects our outlook combining growth trajectory, margin quality, and valuation. See the full 12-month projection in your PDF report.
What are key support and resistance levels for TSM?
View real-time TSM demand zones (support) and supply zones (resistance) on our Demand Zones page. With TSM currently at $387.73, you can see how close the stock is to key technical levels. Subscribe to get alerts when TSM approaches these zones.
How do TSM fundamentals compare to peers?
Taiwan Semiconductor Manufacturing Company Limited operates in the Technology sector. Key metrics for peer comparison: Gross margin 59.9%, ROE 35.2%, Debt/Equity 0.18. The 98% Strong Buy Score factors in how these metrics stack up against industry averages. Data is refreshed daily.
Is the TSM analysis PDF report free?
Yes! Your first TSM fundamental analysis report is completely free with no credit card required. The PDF includes the full Strong Buy Score breakdown, all 8 fundamental categories analyzed, AI-powered insights, and specific investment recommendations. Additional reports are available through our subscription plans starting at $24/month.
What is Taiwan Semiconductor Manufacturing Company Limited's market cap and P/E ratio?
Taiwan Semiconductor Manufacturing Company Limited (TSM) has a market cap of $2.01T and a trailing P/E ratio of 36.8x (forward P/E: 21.6x). These valuation metrics are key factors in our Strong Buy Score calculation. See all metrics in the PDF report for comprehensive valuation analysis.