Stock Price & Analysis

Based on the provided data and recent market activity, TSM is showing mixed signals but appears to be in a favorable position for holding or adding positions. Here's why:

Technical Analysis

• Current price at $210.86 with RSI at 56.82 indicates neutral momentum
• Trading above both 20-day ($204.83) and 60-day ($197.68) moving averages suggests positive medium-term trend
• Fibonacci levels show strong support at $200.89 with resistance at $219.00

Recent Developments

• TSM has received $1.5 billion of promised $6.6 billion in U.S. CHIPS Act funding, with continued funding expected under the new administration
• The company's first Arizona fab began producing advanced chips in Q4 2024, with second plant construction on track for 2028 completion
• Record Q4 profits reported last week driven by strong AI chip demand

Growth Catalysts

• Dominant position in advanced chip manufacturing with >60% market share
• Strong pricing power with planned price increases for AI semiconductors in 2025
• Expanding capacity to meet unrelenting demand from key customers like Nvidia and Apple

Analyst Sentiment

• Barclays recently raised price target to $255 (20.57% upside) citing stronger than expected 2025 growth outlook
• Needham maintains Strong Buy rating with $225 target

Given TSM's strong market position, continued AI-driven demand growth, and reasonable valuation relative to growth prospects, maintaining existing positions or establishing new ones at current levels appears favorable.

Based on the provided data and market analysis, here is the price prediction for TSM stock in 2025:

TSM stock is expected to reach $250 by the end of 2025, driven by its dominant position in advanced chip manufacturing and strong AI chip demand. The company's successful transition to 2nm chip production starting late 2025 and increasing AI-related revenues, which are projected to triple in 2024 and maintain strong growth momentum into 2025, support this bullish outlook. Additionally, TSMC's expanding partnerships with major tech companies and its near-monopoly in advanced chip manufacturing (with over 90% market share in advanced nodes) provide strong fundamentals for price appreciation.

The S1 support level for TSM Stock is $200.89 ,The R1 resistant level for TSM Stock is $219.

As of the end of day on 2025-01-17, the price of TSM Stock was $210.86.

The target price for TSM Stock according to analyst rating is 237.17, with the highest price target at 258.00 and the lowest at 200.00. Analysts have a Strong Buy rating on TSM Stock overall.

The market cap of TSM is $1.1T.

Based on the provided data and context, let's analyze if TSM is overvalued:

Valuation Analysis TSM's current P/E ratio of 27.73 (Q3 2024) is relatively moderate for a semiconductor leader, especially considering its dominant market position and AI-driven growth potential. The EV/EBITDA of 15.35 suggests reasonable operational efficiency.

Market Position & Growth TSM has recently joined the trillion-dollar market cap club, doubling from $500 billion in just one year, driven by its crucial role in the AI revolution. As the world's largest contract chipmaker with over 50% market share in third-party manufacturing and roughly 90% in advanced chips, TSM maintains a strong competitive moat.

Technical Analysis The stock is currently trading at $211.50, showing a -1.53% decline in the last regular market session. Recent price action suggests consolidation after strong gains.

Future Catalysts TSM's Arizona expansion plans and continued U.S. government support through CHIPS Act funding ($1.5 billion received out of $6.6 billion promised) demonstrate strong growth prospects. The company's critical role in AI chip manufacturing for industry leaders like NVIDIA positions it well for continued growth.

Conclusion At current levels, TSM is not overvalued given its market dominance, strong growth prospects, and reasonable valuation metrics relative to its growth potential and industry position. The company's essential role in the AI revolution and semiconductor manufacturing provides substantial future growth opportunities.

Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based company mainly engaged in the provision of integrated circuit manufacturing services. The integrated circuit manufacturing services include process technology, special process technology, design ecosystem support, mask technology, 3DFabricTM advanced packaging and silicon stacking technology services. The Company has completed the transfer and mass production of 5nm technology, and is engaged in the research and development of 3nm process technology and 2nm process technology. The product application range covers the entire electronic application industry, including personal computers and peripheral products, information application products, wired and wireless communication system products, servers and data centers.

Based on the available data and market analysis, here is the price prediction for TSM stock by 2030:

TSM stock is projected to reach $450-500 by 2030, driven by its dominant 90% market share in advanced chip manufacturing and the explosive growth in AI chip demand. The company's upcoming 2nm chip technology launching in late 2025 and strong partnerships with major tech companies like Nvidia, Apple, and Qualcomm will fuel sustained growth. The semiconductor market is expected to generate $2 trillion in revenues by 2032 at a 15% CAGR according to industry research.

TSM has a total of 76478 employees.