The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 70 | 29.8x | 20.8x | Top tier | |
Growth | 80 | 30.8% | 6.1% | Top tier | |
Quality | 86 | 56.4% | 6.6% | Top tier | |
Safety | 71 | — | 0.7x | Top tier | |
Capital Return | 24 | — | 2.02% | Bottom tier | |
Momentum | 81 | 83.4% | 4.1% | Top tier | |
Sentiment | 82 | 9 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, 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.
TSMC is considered the world's leading semiconductor manufacturer, generating its revenue by fabricating advanced electronic chips for major technology companies that do not own their own foundries. The company dominates the production of leading-edge technological nodes, specifically 3-nanometer, 5-nanometer, and 7-nanometer technologies, which form the backbone of high-performance computing applications, smartphones, and artificial intelligence accelerators. The company's strategy relies on offering the latest manufacturing technologies while maintaining strong profit margins through operational efficiency and leadership in advanced packaging solutions.
In the first quarter of fiscal year 2026, the company achieved exceptional financial results, with revenue reaching 35.9 billion US dollars, a sequential increase of 6.4 percent that exceeded management's expectations. Gross margin jumped by 3.9 percentage points to reach 66.2 percent, driven by cost optimization and higher capacity utilization rates, while the operating margin reached 58.1 percent. Advanced technologies, defined as 7-nanometer nodes and below, accounted for the lion's share at 74 percent of total wafer revenue, while the high-performance computing segment alone contributed 61 percent of total sales, reflecting the massive shift toward artificial intelligence applications.
Analysts maintain a strong buy consensus for TSMC stock, setting an average price target of 571 US dollars, reflecting confidence in its AI-driven growth trajectory. Analyst estimates range from a low of 450 dollars to an optimistic high of 700 dollars per share. The stock is currently trading in a range that reflects these positive expectations, as investors monitor the company's ability to balance massive capital expenditures while maintaining strong shareholder returns.
Figures in the text are as of 2026-07-16; the live price is shown at the top of the page.
The company has already begun high-volume manufacturing for 2-nanometer technology in the fourth quarter of 2025 at the Hsinchu and Kaohsiung campuses. As for the A14 technology, which features an advanced second-generation transistor structure, commercial production is scheduled to begin in 2028. The A14 technology will provide a speed improvement ranging between 10 to 15 percent compared to N2 technology, further enhancing the company's technological leadership and market competitiveness.
To address unprecedented demand, the company raised its 2026 capital expenditure budget to the upper limit of 56 billion US dollars to rapidly expand its production capacity. The company is also working on building three new fabs for 3-nanometer technology in Taiwan, Arizona, and Japan, which will begin production between 2027 and 2028. Additionally, the company is converting 5-nanometer technology equipment to support 3-nanometer production to maximize throughput and meet growing customer needs.
Management expects that the initial production ramp-up for 2-nanometer technology will lead to gross margin dilution ranging between 2 to 3 percent during the second half of 2026. Furthermore, expansions in overseas fabs will result in additional margin pressure of 2 to 3 percent in the early stages, which could widen to 4 percent later. However, the company expects the 3-nanometer profit margin to exceed the corporate average in the second half of the year, which will help support overall profitability.
Automated analysis for informational purposes only — not investment advice.
Yes, the company faces ongoing competition from companies like Samsung and Intel, with recent reports indicating that Samsung managed to capture major orders from AMD and Google due to TSMC's production capacity reaching its maximum limit. However, company management emphasizes that building new fabs takes two to three years, and there are no shortcuts in this complex industry. The company relies on its superiority in advanced packaging technologies like CoWoS and its long history of manufacturing excellence to maintain customer trust and secure future orders.