DailyIQ
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Last updated 48 minutes ago

TSM·Taiwan Semiconductor Manufacturing

$.
-. (-.%)
After Hours
High
$416.30
Open
$411.35
Market Cap
62367.35B
52W High
$2,535.00
Low
$400.80
P. Close
$403.63
P/E
27.52
52W Low
$1,125.00
Fwd P/E
18.95
DailyIQ Est.
$570.60
Technical Score (1D)
41
SELL
News Sentiment
69
BULLISH
TSMC announced it will raise chip prices by 5–10 % starting in 2027, pushing the cost of a 3 nm wafer from roughly $19,500 to about $21,450. This move is intended to balance supply constraints with the high demand from flagship device makers such as Apple and Qualcomm. The price hike could lift TSMC’s margin profile and increase revenue by millions of dollars, but it may also raise costs for its largest customers. Earlier this week, TSMC reported record earnings driven by AI demand and used the proceeds to bolster its cash reserves. The company is also expanding its U.S. operations, positioning it to meet growing domestic demand for advanced chips. The combination of higher pricing and increased U.S. capacity signals a strategic push to capture the booming AI and consumer electronics markets. Over the next 1–10 trading days, investors should watch how the market reacts to the announced price increase and whether customers begin to shift sourcing or adjust their own pricing. Additionally, keep an eye on any updates from TSMC regarding the timeline for the U.S. expansion and how it might affect production capacity. If TSMC’s pricing strategy leads to higher margins, it could support a stronger earnings outlook, but any backlash from key customers could dampen short‑term sentiment. Finally, monitor the broader semiconductor supply chain for signs that competitors are adjusting their own pricing or capacity plans in response.
Earnings Summary
Taiwan Semiconductor Manufacturing Company (TSMC) is a global leader in semiconductor manufacturing, specializing in advanced wafer fabrication processes that power high‑performance computing, smartphones, and automotive electronics. In the technology sector, TSMC’s dominance in 5‑nm and 3‑nm nodes positions it at the forefront of the AI and automotive markets. Over the most recent two quarters, TSMC delivered EPS of $2.92 in Q3 2025 and $3.14 in Q4 2025, up from $2.47 and $2.92 respectively in Q1 and Q2 2025, while revenue rose from $933.8 billion to $989.9 billion and then to $1.046 trillion, reflecting an accelerating growth trajectory; the company beat consensus estimates in each of the last five quarters, with Q4 2024 EPS of $2.24 versus an estimate of $2.22497, Q1 2025 $2.12 versus $2.054, Q2 2025 $2.47 versus $2.31303, Q3 2025 $2.92 versus $2.62516, and Q4 2025 $3.14 versus $2.97556. Historically, TSMC has maintained a streak of EPS beats and consistent revenue expansion, underscoring its ability to translate demand into profitability even as capital expenditures rise. Recent news highlights the company’s record Q2 2025 revenue of $40.2 billion driven by AI‑optimized chip demand, the launch of a $265 billion Arizona expansion to capture AI capacity, and the deployment of 2‑nm technology at Phoenix plants, all of which reinforce its competitive moat. Investors should watch for the pace of the Arizona construction timeline, potential labor shortages that could delay first production runs, and the impact of higher capex on short‑term margins, as these factors will shape the next earnings cycle. Additionally, monitoring Nvidia’s quarterly guidance and U.S. regulatory approvals will provide insight into the sustainability of AI demand that underpins TSMC’s growth.

EPS

EstBeatMiss
$1.72$2.44$3.16$3.87$4.59Q4'24Q1'25Q2'25Q3'25Q4'25Q2'26
QtrEstActual+/−
Q2'26$4.26 - -
Q4'25$2.98$3.14+5.5%
Q3'25$2.63$2.92+11.2%
Q2'25$2.31$2.47+6.8%
Q1'25$2.05$2.12+3.2%
Q4'24$2.22$2.24+0.7%

Revenue

EstBeatMiss
$756.5B$935.8B$1115.0B$1294.2B$1473.5BQ4'24Q1'25Q2'25Q3'25Q4'25Q2'26
QtrEstActual+/−
Q2'26$1390.8B - -
Q4'25 - $1046.1B -
Q3'25 - $989.9B -
Q2'25 - $933.8B -
Q1'25 - $839.3B -
Q4'24 - $868.5B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

TSM Stock Snapshot

TSM is currently trading at $402.18, giving Taiwan Semiconductor Manufacturing a market cap of 62367.35B and a P/E ratio of 27.5. Today's range spans $400.80–$416.30, with shares opening at $411.35 and moving down $1.45 (0.4%) from the prior close. DailyIQ's technical score sits at 41/100 (HOLD) with a news sentiment reading of 69/100.

Over the past year TSM has traded between $1125.00 and $2535.00 - the current price is -64.3% off the 52-week low and -84.1% from the high. 45 analysts cover the stock with a Buy consensus and a mean 12-month target of $537.43 (range $430.00–$700.00), implying upside of +33.6%.

TSM is digesting - technically neutral at 41/100 (HOLD), sentiment bullish at 69/100, price at $402.18 (near 52-week lows). For a mega-cap with 62367.35B in Technology (P/E: 27.5), this is the precursor phase that often resolves into a clean directional trend once the market finds a catalyst. Annual range: $1125.00–$2535.00. The longer this consolidation holds, the stronger the eventual breakout or breakdown tends to be.

Passive mandates provide a structural support floor for TSM that active managers can rely on during consolidation phases — at 62367.35B in Technology capitalization, the index-driven bid doesn't go away when the technical signal softens to HOLD (41/100). Sentiment at 69/100 (bullish) and price at $402.18 (near 52-week lows) describe a waiting pattern, not a deteriorating one, within the $1125.00–$2535.00 range.