Very little debt to repay and plenty of cash on hand, so it is hard to shake.
Metrics · D/E ~15% · Current Ratio 2.46
💲Is the price expensive now?
Not cheap (fair to slightly pricey)
Because it is a good, popular company, those expectations are already priced in.
Metrics · P/E 26.3 · P/B 9.0
💡Very strong earning power (margins around 50%), low debt (~0.15x), stable 2.5 current ratio. ROE 40.0% is from core profitability, not buybacks. P/E is ~26x.
Compiled from public financial data. Not a recommendation to buy or sell any security. · Source: Company filings · TradingView · S&P Global (margins, debt, liquidity, P/B are TTM, ADR basis), as of 2026-07-17
Business Summary · Key Value Metrics
The world's largest semiconductor foundry. With no chip brand of its own, it manufactures chips for designers like NVIDIA, AMD, Apple, and Qualcomm on advanced nodes. Leading-edge nodes (3nm, 5nm) are over half of wafer revenue, with AI/HPC the top end market. FY2025 revenue ~$121.9B, ~50.8% operating margin. Taiwan-based, TWD reporting; this report is USD-converted, U.S. ADR (NYSE:TSM) basis.
Current Price
$398.37
-2.77%-$11.37· Close 2026-07-17
Analyst Consensus Target (external reference)
$520.37
Avg. of 19 external analysts · stockanalysis (19-analyst consensus polled by S&P Global)
P/E (TTM)
26.3x
TTM · ADR diluted EPS basis
ROE
40.0%
TTM
Operating Margin
56.1%
TTM GAAP (annual 40-50% range)
Revenue Growth
+30.6%
TTM YoY (AI demand)
Market Cap
$1.83T
As of 2026-07-17 (ADR)
Dividend Yield
~0.7%
Paid quarterly
Economic Moat · Key Business Segments
In leading-edge logic foundry, share is estimated at roughly 60%+ (advanced nodes like 3nm/5nm are effectively a near-monopoly). Major designers like NVIDIA, AMD, Apple, and Qualcomm outsource their flagship products to TSMC, and most high-performance chips in our NVDA, AVGO, and AMD reports are made on TSMC's process. Sub-3nm capacity and advanced packaging like CoWoS are bottlenecks for AI-accelerator supply, and 2nm (N2) entered volume production in 2H 2025. Yield, capacity, and customer trust form the entry barrier (source: company IR · industry · TrendForce).
Leading-edge share
About 60%+ share of leading-edge logic foundry; advanced 3nm/5nm nodes are effectively a near-monopoly.
Concentration of flagship chip production
NVIDIA, AMD, Apple, and Qualcomm outsource their flagship products — the manufacturing hub for AI accelerators and mobile APs.
Advanced packaging (CoWoS)
Packaging capabilities like CoWoS, essential to AI accelerators, are a supply bottleneck, with capacity expansion struggling to keep pace with demand.
Process-roadmap leadership
2nm (N2) entered volume production in the second half of 2025; yield, capacity, and R&D scale form the entry barrier.
10-Year Financial Trends
USD-converted revenue grew steadily at a 9-year CAGR of ~+17% (FY2016 $29.2B → FY2025 $121.9B), while operating income (+20%), net income (+20%), and EPS (+21%) grew faster on a richer leading-edge and AI mix. Operating margin rose from a ~34.8% trough in FY2019 to ~51% in FY2025. FY2023 USD revenue dipped -4.6% in a downcycle, then rebounded sharply in FY2024-FY2025 on AI demand. Q2 2026 revenue set a record ~$40.2B (+33.7% YoY); operating income rose +65.4% YoY (TWD). ROE stays in the 30s on core profitability alone (not a buyback effect) (source: company IR · SEC EDGAR · stockanalysis).
10-Year Growth
Revenue$122B · CAGR +17.2%
Operating Income$61.9B · CAGR +20.3%
EPS$10.64 · CAGR +20.6%
10-Year Valuation
P/E (year-end)28.4x · avg 20.7x
ROE35.4% · avg 28.7%
Operating Margin50.8% · avg 42.3%
📊 Annual Data Table (TSM) — expand/collapse
Year
Revenue (B$)
Op. Income (B$)
EPS ($)
P/E (x)
ROE (%)
Op. Margin (%)
2016
29.2
11.7
1.97
11.8
25.6
39.9
2017
33
13
2.24
14.7
24
39.4
2018
33.8
12.6
2.29
13.9
22.5
37.2
2019
35.6
12.4
2.28
23
22.4
34.8
2020
47.7
20.2
3.51
28.8
30.4
42.3
2021
57.4
23.5
4.12
27.5
29.7
41
2022
73.9
36.6
6.23
11.5
39.3
49.5
2023
70.5
30
5.36
19
26.9
42.6
2024
88.3
40.4
6.81
28.8
30.4
45.7
2025
121.9
61.9
10.64
28.4
35.4
50.8
— = no data for that year/metric (P/E omitted before EPS turned positive)
9-Year CAGR: Revenue +17.2% · Operating Income +20.1% · Net Income +20.5% · EPS +20.6%
Sources: SEC EDGAR (6-K/20-F) · company IR · stockanalysis · companiesmarketcap. Revenue and operating income are company-reported figures converted to USD (TWD reporting converted at average annual exchange rates, so currency effects are included). EPS is on an ADR-diluted (USD) basis. ROE is net income ÷ average equity and comes from core profitability, not buybacks. P/E is fiscal year-end ADR price ÷ diluted EPS (historical prices use split- and dividend-adjusted values, so they are conservative). FY2025 operating margin (annual ~50.8%) and the TTM figure (~56.1%, reflecting AI demand through Q2 2026) cover different periods. Margins in the 58% range could not be verified and were not adopted.
Mega-Cap Value Metric Comparison
As a contract manufacturer rather than a chip designer, TSMC has no clean direct comparison. Its pure-play foundry share of roughly 60% far exceeds Samsung Foundry (~10%) and Intel Foundry (IFS, a new entrant). NVIDIA, AMD, Apple, and Qualcomm are customers, not rivals, and most of the chips in our NVDA, AVGO, and AMD reports are made on TSMC's process. On a core-business basis, its profitability (operating margin in the 50s, ROE around 40%) is among the very best in the chip sector (share = industry estimate · margins/ROE = TTM · sources: TrendForce · company filings · TradingView).
Metric
★ TSMC
Samsung Foundry
Intel (IFS)
Leading-edge foundry share
~60%+
~10%
new/small
Operating Margin
56.1%*
low/loss
loss
ROE
40.0%
—
negative
Revenue YoY Growth
+30.6%
—
declining
* TSMC figures are company-wide (a pure foundry business). Samsung and Intel are shown qualitatively because their foundry divisions are hard to isolate for comparison. Share = industry estimate (TrendForce et al.); margins and ROE = TTM · sources: company filings · TradingView, as of 2026-07-17.
Key Risk Factors (from 10-K)
●
Geopolitics and Taiwan concentration risk— Capacity is concentrated in Taiwan, exposing it to geopolitical and natural-disaster risks such as cross-strait (China-Taiwan) tensions and earthquakes. It is diversifying with expansions in the U.S. (Arizona), Japan, and Germany, but this takes time and money.Source: Company 20-F Risk Factors
●
Customer and end-demand concentration— Revenue is concentrated in AI/HPC demand and a few large customers (NVIDIA, Apple, etc.). A semiconductor-cycle slowdown or a pullback in AI investment can cause large earnings swings (as in the FY2023 downcycle).Source: Company IR · industry
●
FX and overseas-fab costs— Because it reports in TWD, USD-converted results are affected by exchange rates, and new fabs in the U.S. and Japan carry higher costs than in Taiwan, diluting margins in the near term.Source: Company IR
●
Export controls and customer in-sourcing— U.S.-China semiconductor export controls affect some customers' revenue, and some customers' moves toward their own foundry (Intel) or multi-sourcing are a long-term variable.Source: Regulators · industry
✦ ValueCrab Dashboard PreviewTSM $398.37 -2.77% · as of 2026-07-17
Q. What are TSMC's (TSM) key value-investing metrics?P/E (TTM) 26.3, ROE 40.0%, operating margin 56.1% (TTM; annual is in the 40-50% range), net margin 49.9%, TTM revenue +30.6%, and a 9-year revenue CAGR of about +17% (USD-converted) (sources: company IR · SEC · stockanalysis, as of 2026-07-17, ADR).
Q. What is the analyst price-target consensus for TSMC?The average target across about 19 analysts is roughly $520.37 (polled by S&P Global, ADR basis). This is an external consensus, not our own estimate. It sits about +30.6% above the current $398.37. Sources: stockanalysis · S&P Global, 2026-07.
Q. Is an operating margin above 50% really accurate?The company's reported GAAP operating margin was about 50.8% for full-year FY2025 and about 56.1% on a recent TTM basis (through Q2 2026). Margins rose as AI and leading-edge nodes grew as a share of the mix; the ~58% figure cited in some places could not be verified in filings, so this report does not adopt it (sources: company IR · TradingView).
Q. How does the TSMC ADR (U.S. stock) differ from the Taiwan-listed shares?TSMC is headquartered in Taiwan (reporting and paying dividends in TWD) and trades in the U.S. as an ADR (NYSE:TSM). The price, market cap, EPS, and P/B in this report are all on a USD ADR basis, while revenue and income are company filings converted to USD, so they include currency effects.
Q. Are TSMC and NVIDIA, AMD, and Apple competitors?No. TSMC is a foundry that manufactures chips rather than designing them, so NVIDIA, AMD, Apple, and Qualcomm are all TSMC customers. Many of their flagship chips (AI accelerators, mobile APs, etc.) are made on TSMC's process. Its foundry competitors are Samsung Electronics and Intel Foundry.