Taiwan Semiconductor Manufacturing Co., Ltd. AI Stock Analysis
Taiwan Semiconductor Manufacturing Co., Ltd. (2330) AI Stock Analysis
Taiwan Semiconductor Manufacturing Co., Ltd.
(TWSE:2330)
TSMC earns a strong score driven by exceptional financial performance — rapid revenue growth, record margins, 41% ROE and a fortress balance sheet with minimal leverage — reinforced by an upbeat earnings call featuring raised full-year growth guidance of ~44% and extremely robust AI demand. Valuation is supportive at a 22.4x P/E given that growth profile. The main drag is technicals: the share price sits below all major moving averages with a negative MACD and deeply oversold momentum readings, indicating significant near-term selling pressure. Margin dilution from the 2 nm ramp and overseas fabs, plus heavy multi-year capital spending, are the key fundamental watch points.
Taiwan Semiconductor Manufacturing Co., Ltd. (2330) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 61.46T
- Dividend Yield
- 1.00%
- Average Volume (3M)
- 26.37M
- Price to Earnings (P/E)
- 24.4
- Beta (1Y)
- 1.03
- Revenue Growth
- 36.17%
- EPS Growth
- ―
- Country
- TW
- Employees
- 76,907
- Sector
- General
- Sector Strength
- 55
- Industry
- Semiconductors
Taiwan Semiconductor Manufacturing Co., Ltd. Business Overview & Revenue Model
Company Description
Taiwan Semiconductor Manufacturing Company Limited (TSMC) specializes in the comprehensive production cycle of integrated circuits and various semiconductor devices, including their fabrication, assembly, rigorous testing, and worldwide distribution....
Taiwan Semiconductor Manufacturing Co., Ltd. Financial Statement Overview
Summary
Outstanding across all three statements. Income statement (97): revenue reached NT$4.94 trillion TTM with 31.6% growth, gross margin expanded to 65.8%, operating margin to 59.1% and net margin above 50%. Balance sheet (94): equity funds ~70% of assets, debt-to-equity of just 0.14 (down from 0.35 in 2021) and ROE of 41.2%. Cash flow (90): operating cash flow of NT$3.21 trillion is 1.63x net income and free cash flow rose ~34% to NT$1.50 trillion, though heavy capital spending absorbs roughly half of operating cash flow. Key structural risks are semiconductor cyclicality, capital intensity and geographic concentration of fabs.
Income Statement
97Very PositiveBalance Sheet
94Very PositiveCash Flow
90Very Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.94T | 3.81T | 2.89T | 2.16T | 2.26T | 1.59T |
| Gross Profit | 3.26T | 2.28T | 1.62T | 1.18T | 1.35T | 819.54B |
| EBITDA | 3.67T | 2.72T | 2.08T | 1.52T | 1.59T | 1.09T |
| Net Income | 2.55T | 1.72T | 1.16T | 838.50B | 992.92B | 592.36B |
Balance Sheet | ||||||
| Total Assets | 10.05T | 7.93T | 6.69T | 5.53T | 4.96T | 3.73T |
| Cash, Cash Equivalents and Short-Term Investments | 4.02T | 3.07T | 2.49T | 1.71T | 1.59T | 1.20T |
| Total Debt | 983.51B | 1.06T | 1.05T | 956.26B | 888.17B | 753.63B |
| Total Liabilities | 3.01T | 2.47T | 2.41T | 2.08T | 2.05T | 1.57T |
| Stockholders Equity | 7.00T | 5.42T | 4.24T | 3.43T | 2.90T | 2.15T |
Cash Flow | ||||||
| Free Cash Flow | 1.50T | 1.09T | 861.20B | 286.57B | 520.97B | 262.72B |
| Operating Cash Flow | 3.21T | 2.36T | 1.83T | 1.24T | 1.61T | 1.11T |
| Investing Cash Flow | -1.58T | -1.25T | -864.84B | -906.12B | -1.19T | -836.37B |
| Financing Cash Flow | -554.31B | -421.22B | -346.30B | -204.89B | -200.24B | 136.61B |
Taiwan Semiconductor Manufacturing Co., Ltd. Peers Comparison
Overall Rating
- TW:233078Outperform
TW:230368Neutral
TW:371166Neutral
TW:240865Neutral
TW:310557Neutral
TW:677037Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:2330 | 78Outperform | TWD 59.26T | 24.37 | ― | 1.00% | 36.17% | ― |
| TW:2303 | 68Neutral | TWD 1.26T | 15.27 | ― | 2.51% | 12.57% | 100.52% |
| TW:3711 | 66Neutral | TWD 2.67T | 35.63 | ― | 1.07% | 24.94% | 115.44% |
| TW:2408 | 65Neutral | TWD 1.32T | 7.57 | 63.83% | 0.34% | 585.80% | ― |
| TW:3105 | 57Neutral | TWD 204.76B | 65.22 | ― | 0.38% | 31.84% | 1329.89% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:6770 | 37Underperform | TWD 278.96B | 11.23 | ― | 0.39% | 42.62% | ― |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:2330 | Taiwan Semiconductor Manufacturing Co., Ltd. | 2395.00 | 952.69 | 66.05% | |
| TW:2408 | Nanya Technology Corporation | 394.00 | 231.02 | 141.75% | |
| TW:2303 | United Microelectronics Corp. | 104.00 | 60.30 | 137.98% | |
| TW:3105 | Win Semiconductors Corp. | 521.00 | 392.04 | 304.01% | |
| TW:3711 | ASE Technology Holding Co., Ltd. | 617.00 | 387.60 | 168.96% | |
| TW:6770 | Powerchip Semiconductor Manufacturing Corp. | 58.50 | 22.97 | 64.64% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 09, 2026