TSM Should I Buy
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Based on the data provided, Taiwan Semiconductor Manufacturing Co Ltd (TSM) is a strong buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's robust financial performance, strong analyst ratings, positive news sentiment, and leadership in advanced chip manufacturing make it an attractive investment opportunity.
The technical indicators for TSM are bullish. The MACD is positively expanding at 2.677, RSI is neutral at 70.701, and moving averages (SMA_5 > SMA_20 > SMA_200) indicate a bullish trend. The stock is trading above key support levels (Pivot: 348.773, S1: 325.498) and is approaching resistance levels (R1: 372.049, R2: 386.428).
Strong Q4 financial performance with 25.52% YoY revenue growth and 40.66% YoY net income growth.
Analysts have consistently raised price targets, with the highest target at $450, citing TSMC's leadership in advanced manufacturing and AI-driven demand.
Positive news sentiment highlights TSMC's role as a preferred foundry for top chipmakers and its leadership in AI-related chip production.
AI investments from major tech companies like Microsoft, Alphabet, and Meta are expected to drive demand for TSMC's advanced chips.
Neutral sentiment from hedge funds and insiders, with no significant trading trends.
High implied volatility (44.
and elevated IV percentile (89.
suggest potential price swings, which may concern risk-averse investors.
In Q4 2025, TSMC reported a 25.52% YoY revenue increase, 40.66% YoY net income growth, and a 28.89% YoY EPS increase. Gross margin improved slightly to 59.45%. These metrics indicate strong financial health and growth momentum.
Analysts are overwhelmingly positive on TSMC. DA Davidson initiated coverage with a Buy rating and a $450 price target, citing a durable competitive advantage. Barclays and TD Cowen raised their price targets to $450 and $370, respectively, following strong Q4 results. Goldman Sachs highlighted TSMC's multi-year growth engine in AI, raising its price target to NT$2,330.
