Stock Price & Analysis

Buy TSM stock as it is undervalued with strong growth prospects and a competitive position in the semiconductor industry. Sell TSM stock if you are risk-averse due to market volatility and geopolitical risks.

Price Prediction for TSM Stock in 2025

Based on current trends and analysis, TSM stock is expected to reach $185 by the end of 2025. This prediction is supported by strong revenue growth, a solid market position, and increasing demand in AI and high-performance computing sectors.

The S1 support level for TSM Stock is $163.08 ,The R1 resistant level for TSM Stock is $180.8.

As of the end of day on 2025-04-01, the price of TSM Stock was $168.76.

The target price for TSM Stock according to analyst rating is 245.00, with the highest price target at 265.00 and the lowest at 215.00. Analysts have a Strong Buy rating on TSM Stock overall.

The market cap of TSM is $4.4T.

Analysis and Insights

Valuation Metrics

TSM's current valuation metrics suggest it is fairly valued with growth potential:

• P/E Ratio: 25.85 (Q1 2024)
• EV/EBITDA: 13.98
• P/S Ratio: 9.86
• P/B Ratio: 6.2
• Dividend Yield: 1.7%

These metrics indicate moderate valuation levels, with the P/E ratio aligning closely with the S&P 500 average.

Market Trends

TSM is benefiting from strong demand in the semiconductor industry, driven by AI and advanced chip manufacturing. Despite recent market volatility, the stock has shown resilience, with a price of $177 as of the latest data.

Financial Performance

• Revenue Growth: Consistently increasing, with Q4 2024 revenue projected at $26.9 billion.
• Net Income Margin: ~25%, reflecting strong profitability.
• Gross Margin: ~53%, indicating robust operational efficiency.

Competitive Position

TSMC maintains a dominant position in the global foundry market, with a projected 67% market share in 2025. Its advanced node capacity and investments in AI-related technologies position it well for long-term growth.

Conclusion

While some investors may view TSM as overvalued due to market volatility, its strong financials, competitive dominance, and growth prospects suggest it is fairly valued. The stock offers a balance of stability and growth potential.

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.

Price Prediction for TSM Stock by 2030

Based on current trends and projections, TSM stock is expected to reach $450 by 2030. This prediction is driven by TSMC's strong growth in AI-related revenues, which are projected to grow at a 40-45% CAGR, and the company's leadership in advanced semiconductor manufacturing.

TSM has a total of 76478 employees.