The company delivers 35% annual revenue growth against a 47% margin structure and a wide economic moat at a PEG of 1.29, with four consecutive earnings beats reinforcing execution discipline. The 2.4-to-1 risk/reward is favorable, though weak momentum and free cash flow converting at only 38% of net income justify a small initial position pending a technical breakout.
Thesis pillars
- Strong Growth Trajectory→Stable
- Franchise Quality And Moat→Stable
- Consistent Earnings Beat Streak→Stable
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026· older than 90 days
Taiwan Semiconductor Manufactur (TSM) Stock Analysis
Temporary headwind edge
Technology · Semiconductors
Wait for pullback to $399.60. Weak momentum — blocks BUY_NOW at $404.80. Engine's entry $399.60 (Ma200 Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Sector modifier (Technology): -0.8; Negative momentum.
Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It... Read more
Wait for pullback to $399.60. Weak momentum — blocks BUY_NOW at $404.80. Engine's entry $399.60 (Ma200 Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Sector modifier (Technology): -0.8; Negative momentum. Chart setup: No clear chart pattern; technical signals are mixed. Quality-value play. Wait for momentum improvement. Score 7.3/10, moderate confidence.
Passes 7/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 71d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: moderate.
Recent developments
updated Nov 1, 2026Recent Developments — Taiwan Semiconductor Manufactur
Latest news
- NEWS Why Did Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Drop? - Yahoo Finance — Yahoo Finance Nov 1, 2026 negative
- NEWS TSM Stock Quote Price and Forecast - CNN — CNN Oct 28, 2026 neutral
- NEWS Zacks Investment Ideas feature highlights: Taiwan Semiconductor Manufacturing, ASML and BWX Technologies - The Globe and — The Globe and Mail Oct 21, 2026 neutral
- NEWS AI’s Semiconductor Boom Has a Clear Center of Gravity: Taiwan Semiconductor - Benzinga — Benzinga Sep 30, 2026 positive
- NEWS Arm vs. Taiwan Semiconductor Manufacturing: Which Chip Stock Is a Better Buy in 2026? - The Motley Fool — The Motley Fool Sep 23, 2026 neutral
Latest item Nov 1, 2026 · Generated 2026-11-04T11:29:29Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
1 floor-breaker·2 ceiling hits
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Wait for pullback to $399.60. Weak momentum — blocks BUY_NOW at $404.80. Engine's entry $399.60 (Ma200 Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Sector modifier (Technology): -0.8; Negative momentum. Chart setup: No clear chart pattern; technical signals are mixed. Quality-value play. Wait for momentum improvement. Target $525.95 (+29.9%), stop $386.34 (−4.8%), A.R:R 4.2:1. Score 7.3/10, moderate confidence.
Take-profit target: $525.95 (+29.9% upside). Target $525.95 (+29.9%), stop $386.34 (−4.8%), A.R:R 4.2:1. Stop-loss: $386.34.
Sector modifier (Technology): -0.8; Negative momentum.
Taiwan Semiconductor Manufactur trades at a P/E of 26.2 (forward 17.3). TrendMatrix value score: 8.2/10. Verdict: Buy (Wait for Entry).
42 analysts rate TSM, with a consensus score of 4.2/5. 20 analysts publish price targets averaging $584.
What does Taiwan Semiconductor Manufactur do?Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and...
Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides various wafer fabrication processes, such as processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others. The company also involved in providing customer and engineering support services; manufacturing of masks; investment in technology start-up companies; research, designing, developing, manufacturing, packaging, testing, and sale of color filters; and investment activities. Its products are used in high performance computing, smartphones, Internet of things, automotive, and digital consumer electronics. Taiwan Semiconductor Manufacturing Company Limited was incorporated in 1987 and is headquartered in Hsinchu City, Taiwan.