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
Taiwan Semiconductor Manufactur (TSM) Stock Analysis
Range Bound setup
Technology · Semiconductors
Wait for pullback to $386.46. Weak momentum — blocks BUY_NOW at $414.99. Engine's entry $386.46 (Atr Pullback Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum.
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 $386.46. Weak momentum — blocks BUY_NOW at $414.99. Engine's entry $386.46 (Atr Pullback Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Chart setup: RSI 44 mid-range, Bollinger mid-band. Growth is cheap relative to earnings, but the technical setup has not yet produced a breakout above resistance (PEG 0.98, quality 8.8/10, growth 10.0/10). 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 72d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: moderate.
Recent developments
updated 2026-08-04Recent Developments — Taiwan Semiconductor Manufactur
Latest news
- NEWS TSM Stock Slips Premarket Today — CEO Reportedly Says AI Chip Shortage Isn’t Ending Anytime Soon - Stocktwits — Stocktwits negative
- NEWS TSM Stock Spikes Overnight: Q1 Print Tops Estimates On Strong Demand For AI Chips, Advanced Processors - Stocktwits — Stocktwits positive
- NEWS Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Faces Fresh Questions Over China Tools And AI Spending - Yahoo Finan — Yahoo Finance negative
- NEWS Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Faces Fresh Questions Over China Tools And AI Spending - finance.yah — finance.yahoo.com negative
- NEWS Taiwan Semiconductor Manufacturing (TSM): One of the Harvard University Stock Picks - Yahoo Finance — Yahoo Finance positive
Generated 2026-08-04T11:04:44Z.
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.
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Rating Breakdown
2 ceiling hits
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Wait for pullback to $386.46. Weak momentum — blocks BUY_NOW at $414.99. Engine's entry $386.46 (Atr Pullback Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Chart setup: RSI 44 mid-range, Bollinger mid-band. Growth is cheap relative to earnings, but the technical setup has not yet produced a breakout above resistance (PEG 0.98, quality 8.8/10, growth 10.0/10). Target $486.18 (+17.2%), stop $351.29 (−18.1%), A.R:R 2.3:1. Score 7.3/10, moderate confidence.
Take-profit target: $486.18 (+19.7% upside). Target $486.18 (+17.2%), stop $351.29 (−18.1%), A.R:R 2.3:1. Stop-loss: $351.29.
Taiwan Semiconductor Manufactur trades at a P/E of 35.7 (forward 18.8). TrendMatrix value score: 7.3/10. Verdict: Buy (Wait for Entry).
43 analysts cover TSM with a consensus score of 4.3/5. Average price target: $540.
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.