To predict the stock price of Taiwan Semiconductor Manufacturing Company (TSM) for the next trading week, we analyze both fundamental and technical factors.
Valuation and Growth Prospects: TSM has a strong valuation with a P/E ratio of 25, indicating reasonable pricing compared to its earnings. The company has shown robust revenue growth, with a 39% year-over-year increase in the last quarter, driven by the AI boom and its leadership in advanced semiconductor manufacturing.
Market Position and Expansion: TSMC is expected to maintain its leading position in the semiconductor market, with a $100 billion U.S. expansion planned, which could increase its advanced node capacity by 20% by 2030.
Analyst Sentiment: Analysts remain optimistic about TSMC's prospects, with a high rating from Validea's Patient Investor model, which aligns with Warren Buffett's investment strategy.
Price Trends: TSM's stock price has been fluctuating between $173.79 and $177.20 recently, indicating a range-bound market. The current price is $176.73, near the upper end of this range.
Technical Indicators:
Volume Analysis: Volume fell on the last trading day, suggesting reduced selling pressure.
Given the current technical indicators and fundamental strength, TSM is expected to face resistance at $177.70. The stock may pull back slightly due to short-term bearish momentum. The predicted price for the next trading week is $173.59.
Based on the analysis, it is recommended to sell TSM at current levels as the stock is near resistance and technical indicators suggest a potential pullback.
The price of TSM is predicted to go up -11.68%, based on the high correlation periods with KIRK. The similarity of these two price pattern on the periods is 96.39%.
TSM
KIRK
Year
TSM Price Forecast($)
Potential Return(%)
2025
217.100
4.070
2026
250.000
38.480
2027
300.000
66.180
2028
300.000
66.180
2029
400.000
121.570
2030
450.000
149.270
TSMC should consistently earn higher gross margins than competitors thanks to its economies of scale and premium pricing justified by cutting-edge process technologies.
TSMC wins when customers compete to offer the most advanced processing systems using the latest process technologies.
TSMC will benefit from more semiconductor firms embracing the fabless business model and internet giants designing their own data center chips.
Barclays
2025-01-17
Price Target
$240 → $255
Upside
+20.57%
Needham
2025-01-16
Price Target
$225
Upside
+4.75%
Barclays
2024-11-18
Price Target
$215 → $240
Upside
+28.01%