Taiwan Semiconductor Manufacturing Company, Limited is a Taiwanese multinational semiconductor contract manufacturing and design company. It is one of Taiwan's largest companies, the world's most valuable semiconductor company, and the world's largest dedicated independent (pure-play) semiconductor foundry, with its headquarters and main operations located in the Hsinchu Science Park in Hsinchu, Taiwan. It is majority owned by foreign investors.
| Revenue (TTM) | $4.44T |
| Gross Profit (TTM) | $2.85T |
| EBITDA | $3.17T |
| Operating Margin | 60.30% |
| Return on Equity | 40.00% |
| Return on Assets | 19.00% |
| Revenue/Share (TTM) | $107.03 |
| Book Value | $4.89 |
| Price-to-Book | 11.60 |
| Price-to-Sales (TTM) | 0.53 |
| EV/Revenue | 13.8 |
| EV/EBITDA | 18.19 |
| Quarterly Earnings Growth (YoY) | 77.40% |
| Quarterly Revenue Growth (YoY) | 36.00% |
| Shares Outstanding | $5.19B |
| Float | $37.84B |
| % Insiders | 0.01% |
| % Institutions | 15.48% |
Volatility is currently expanding
Chip stocks are splitting in two directions, with Intel (NASDAQ:INTC | INTC Price Prediction) handing back part of an enormous year while NVIDIA (NASDAQ:NVDA) rises on its own company news. Intel stock trades at $117.
TSMC investors received another strong signal on Monday that demand for the company's next-generation chips is accelerating faster than expected, even as the stock has stopped reacting aggressively to every bullish AI datapoint. Industry reports suggest Apple, Nvidia and other major customers have increased orders for TSMC's 2-nanometre family by 10% to 20%, pushing expected monthly capacity to about 120,000 wafers by the end of 2026.
Taiwan Semiconductor Manufacturing Company is primed for strong Q3 earnings, driven by accelerating AI chip demand and robust revenue growth. TSMC's August revenues surged 53% year-over-year, reinforcing its dominant 73% global foundry market share and operational outperformance potential. Shares trade at a moderate 20.6x FY 2027 P/E, with potential for a 25x P/E re-rating if margin and HPC growth accelerate, implying ~22% upside.
Earnings season is here again, with the next few weeks promising some important earnings drops. From financials like JP Morgan Chase (JPM) all the way to most of the megacap tech names, markets will learn a lot.
AI-driven demand is boosting semiconductor stocks, with ADI, SMTC, TSM and ASMIY positioned for growth across chips and AI infrastructure.
TSMC offers broad AI upside without requiring investors to pick individual AI model or chip design winners. TSM is ramping up advanced packaging capacity, addressing current bottlenecks and positioning for future AI chip demand growth. Despite a high valuation (TTM GAAP P/E
Rising Treasury yields are reshaping market preferences, putting dividend growth stocks like EnerSys and Amgen in focus for income and growth.
Taiwan Semiconductor Manufacturing Company is the central beneficiary of the AI-driven CapEx surge, with hyperscalers' spending projected to reach $1.3 trillion in 2027. TSM delivered 33.7% YoY revenue growth, 67.7% gross margin, and 60.3% operating margin in Q2 2026 and is guiding for 37% YoY revenue growth in Q3. TSM trades at 20.37x 2027 earnings, with EPS projected to grow nearly 30% annually through 2028, making it undervalued relative to its growth and cash generation.
The latest rebalance of VettaFi's Thematic Rotation Quality Momentum Screened Index (TQRMS), tracked by the NBI Thematic Rotation ETF (NTHM:TSX), reshapes the portfolio around a new set of themes. GLP-1 weight loss drug manufacturers and midstream energy join the index, while battery technology & storage and software-as-a-service (SaaS) exit.
Taiwan Semiconductor remains a buy as its valuation is attractive and the uptrend persists ahead of key September and Q3 results. TSM delivered strong Q2 results, with revenue up 36% YoY and gross margin at 67.7%, driven by high-performance computing demand. Management raised FY 2026 revenue growth outlook to above 40% and increased capex guidance to $60–$64 billion, signaling confidence in sustained AI demand.
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