TSM - Taiwan Semiconductor Manufacturing Co Ltd
The world's largest contract chipmaker, fabricating the most advanced AI and HPC processors for Nvidia, Apple, and nearly every leading-edge silicon designer.
Finlify Score
60.5 / 100
Data Quality
LIMITED
Penalty
-4.8
Sector
Information Technology
Close Price
$403.31
+7.64%
52W Range
$1125.00 - $2535.00
Market Cap
$61.5T
+7.6%Compared to previous day
Latest Revenue
-
Changes from last reporting quarter
Latest EPS
-
Diluted shares
Analyst Rating
43 analysts in latest ratings feed
RSI
39.0
<40 oversold
2Y Range Position
78%
-15.8% from high / +201.9% from low
Beta
1.06
Relative to market benchmark
MACD
-3.29
MACD line -9.85 / signal line -6.56
Fundamental Trend
Growth 70.5Financial Health
Quality 55.3Data Quality
LIMITEDValuation Reference
Price Chart
Close price, two-year source window
Finlify Score
HOLD60.5 / 100
Score History
Finlify Score and component trend
AI Signal
Generated Jul 25, 2026
The Finlify signal for TSM is a HOLD, with a Finlify Score of 61.9 out of 100. This stance appears to be influenced by a combination of moderate to strong component scores, though data coverage limitations, indicated by a "LIMITED" data quality status and a -4.8 deduction, may temper overall confidence.
Technical
Technical indicators suggest a mixed picture for TSM. The Accumulation / Volume score of 76.9/100 appears robust, potentially indicating buying interest, while Relative Strength at 61.6/100 suggests moderate momentum. The asset has experienced a short-term decline with a -5.7% return over 20 days, though it shows a positive 2.6% return over 60 days, and its RSI(14) of 46.3 indicates a relatively neutral short-term momentum.
Fundamentals
From a fundamental perspective, TSM shows a strong Fundamental Trend score of 70.5/100, which may suggest positive underlying business momentum. However, its Financial Quality score is moderate at 55.2/100. The asset appears to trade at premium valuation multiples, with a P/E ratio of 36.3x, P/B of 7.3x, and P/S of 16.4x, while offering a modest dividend yield of 0.94%. The latest earnings report indicated a BEAT, which could be a positive sign.
Macro Context
The current macroeconomic environment, characterized by elevated inflation with CPI YoY at 3.7% and Core PCE YoY at 3.4%, alongside a 10Y Treasury Yield of 4.7%, may present a challenging backdrop for growth-oriented assets like TSM. The positive yield spread of 0.4% (10Y-2Y) could suggest a less immediate recessionary concern, but higher interest rates may still impact future earnings valuations.
Key Risks
- Data Quality Limitations: The "LIMITED" data quality, with flags like "missing_financial_statements" and "missing_financial_health," suggests that the Finlify score may not fully capture all aspects of the asset's financial health.
- Premium Valuation: TSM's valuation multiples, including a P/E of 36.3x and P/S of 16.4x, appear elevated, which could imply a higher risk if future growth expectations are not met.
- Macroeconomic Headwinds: Elevated inflation and higher interest rates, as indicated by a 10Y Treasury Yield of 4.7%, may put pressure on growth stock valuations and consumer demand for semiconductors.