| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 27 | 27.8x | 17.3x | Bottom tier | |
Growth | 97 | 36.1% | 7.1% | Top tier | |
Quality | 97 | 33.5% | 4.5% | Top tier | |
Safety | 91 | — | 2.6x | Top tier | |
Capital Return | 49 | 0.81% | 0.06% | Around median | |
Momentum | 79 | 55.0% | -1.6% | Top tier | |
Sentiment | 95 | 9 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
66% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 5.00% as of 2026-10-23. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Taiwan Semiconductor Manufacturing Company Limited operates as a contract semiconductor manufacturer, generating revenue from manufacturing customers' chips using advanced and mature technologies, along with packaging, testing, and related services. In fiscal Q2 2026 ended 2026-06-30, 7-nanometer and below technologies accounted for 77% of wafer revenue, distributed among 2-nanometer at 3%, 3-nanometer at 30%, 5-nanometer at 33%, and 7-nanometer at 11%. By platform, high-performance computing represented 66% of revenue, compared with 22% for smartphones, 5% for the Internet of Things, 4% for automotive, and 1% for digital consumer electronics.
Revenue for fiscal Q2 2026 ended 2026-06-30 was approximately TWD 1.27 trillion, representing year-over-year growth of 36.0% from TWD 933.8 billion in fiscal Q2 2025. Net income was TWD 706.6 billion and diluted earnings per share were 136.25, while gross margin reached 67.7% and operating margin reached 60.3%. High-performance computing advanced 20% quarter over quarter to become the source of approximately two-thirds of revenue, while the smartphone platform declined 4% on the same basis.
The company generated operating cash flow of TWD 783.4 billion in fiscal Q2 2026, and cash and investments totaled TWD 3.13 trillion versus total debt of TWD 1.07 trillion. During the last 12 months through 2026-06-30, it generated TWD 4.45 trillion in revenue, TWD 2.24 trillion in net income, and TWD 1.27 trillion in free cash flow. Open-market insider trading during the 90 days through 2026-09-27 included 115 purchases valued at $1.6 million and one sale valued at $3761, with the entire sale value occurring outside 10b5-1 plans.
Q2 FY2026
Last 12 months to 2026-06-30
When: 2026-10-15
Fiscal Q3 2026 revenue compared with the guidance ceiling of $45.8 billion
Fiscal Q3 2026 gross margin compared with the guidance ceiling of 67%
Fiscal Q3 2026 operating margin compared with the guidance ceiling of 58%
The industry-multiple valuation gives a value of $692 within a range of $424 to $1232, pricing TSMC like 63 peer companies using a median multiple of 51.1 times last-12-month earnings. The median analyst price target is $554 within a range of $500 to $700 from ten analysts, while the consensus average is $578.43; this method prices in expected growth and is inherently inclined toward optimism, and Needham raised its target to $530 on 2026-07-27 while Susquehanna raised its target to $600 on 2026-07-16. The discounted cash flow model gives an indicative value of $156 within a range of $134 to $188 at a discount rate of 11.5% and with low confidence; it measures the cash generated by the company and is inherently inclined toward conservatism, while the no-growth value is $123 at the same discount rate and represents what remains if current after-tax operating profit stays constant forever. The industry-multiple value and analyst targets are relatively aligned in pricing continued growth, but they differ clearly from the discounted cash flow and no-growth models because the latter are more sensitive to the 11.5% discount rate and do not give growth expectations the same weight; the valuation pillar in the EL7 score places the company at 71 out of 100 within the industry, a measure of its relative valuation position among peers.
Figures in the text are as of 2026-09-27; the live price is shown at the top of the page.
Revenue for fiscal Q2 2026 ended 2026-06-30 was approximately TWD 1.27 trillion, up 36.0% year over year from TWD 933.8 billion. High-performance computing accounted for 66% of revenue after increasing 20% quarter over quarter, compared with 22% for smartphones. In addition, 77% of wafer revenue came from 7-nanometer and below technologies, directly linking growth to demand for advanced manufacturing.
2-nanometer technology contributed 3% of wafer revenue in fiscal Q2 2026 ended 2026-06-30, and the company's inventories were rising partly in preparation for the N2 production ramp-up. Management expects this ramp-up to dilute gross margin by approximately 3–4 percentage points during the second half of fiscal 2026. In contrast, the company sees strong demand for advanced technologies and is adding capacity to support this trajectory.
Automated analysis for informational purposes only — not investment advice.
Gross margin was 67.7% and operating margin was 60.3% in fiscal Q2 2026 ended 2026-06-30. However, fiscal Q3 2026 guidance places gross margin between 65% and 67% and operating margin between 56% and 58% because of the 2-nanometer production ramp-up. Management also expects overseas fabs to reduce gross margin by approximately 2–3 percentage points in the initial stages, with the impact widening to 3–4 percentage points later.
During the 90 days through 2026-09-27, 115 open-market purchases with a total value of $1.6 million were recorded. One executive sale valued at $3761 was recorded. No portion of the sale occurred under a 10b5-1 plan, so the entire $3761 sale value was outside predetermined plans.
TSMC plans to begin A14 risk production in 2027 and volume production in 2028. A14 targets a speed improvement of between 10% and 15% at the same power, or a power-consumption improvement of between 25% and 30% at the same speed, with an approximately 20% increase in chip density compared with N2 technology. The company also scheduled volume production of A13 and A12 technologies for 2029, with A13 design rules compatible with A14 to facilitate intellectual-property migration.