TSM Taiwan Semiconductor Manufacturing Company Ltd. Semiconductors & Related Devices Best Semiconductor Stocks 2026 →

TSM Stock Analysis: Buy, Sell, or Hold?

$413.35
+16.87 (+4.25%) ▲
5d: +4.45% 30d: -7.14% 90d: -3.98%
QUANTITATIVE VERDICT
WAIT
LOW Confidence (77%)
Quality Score
50/100
Position
FAIR
30-Day Fair Range
$394.40 – $454.08
Position: FAIR
Forward P/E & Valuation
17.7x CHEAP
vs 20.1x historical avg
Wall Street Target
$586.69
+41.9% upside
Options IV & Volume
HIGH Vol
HIGH volume confirmation
Support / Resistance
$351.19 / $436.24
Trend: Strong Uptrend
💡Executive Thesis & Bottom Line
Forward Earnings Fair Value & Price Prediction →
â„šī¸ NEUTRAL: TSM is fairly priced but lacks strong directional signals. At -4.2% expected growth, valuation appears cheap. Wait for clearer setup or better entry on dips.
NEW THESIS The Datacenter CPU Renaissance (2026)

See why TSM plays a critical role in the upcoming CPU supercycle alongside GPUs. Read Deep Dive →

Smart Money Accumulation

Options open interest is building while the stock consolidates - a pattern consistent with institutional accumulation. View Scanner →

Signal fired Oct 8, 2026 at $457.99 · last confirmed Nov 11, 2026

Strength: 8.0/10

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Interactive Price Chart (1 Month)

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Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$915.34
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$568.36
27.3% Margin of Safety

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 20.1x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: TSM is currently trading at $413.35, which is considered fair relative to its 30-day fair value range of $394.40 to $454.08. From a valuation perspective, the stock is trading at a discount (Forward PE: 17.7) compared to its historical average (20.1). Remarkably, the market is currently pricing in an annual earnings decline of 4.2% over the next few years. This pessimistic expectation contrasts with the company's recent 68.7% earnings growth, suggesting potential undervaluation if the company simply maintains stability.

Technical Outlook: Technically, TSM is in a strong uptrend. Immediate support is located at $351.19, while resistance sits at $436.24. The stock is showing strong short-term momentum, up 4.3% recently.

Market Sentiment: The stock scores a mixed 45/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $586.69 (+41.9%). Current signals suggest waiting for a better entry point before initiating new positions.

Quick Decision Summary

Current Position FAIR
Historical Trading Range $394.40 - $454.08
Company Quality Score 50/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 77.1%

Trading Range & Key Levels

30-Day Trading Range $394.40 - $454.08
Current vs Trading Range FAIR
Support Level $351.19
Resistance Level $436.24
Current Trend Strong Uptrend
Technical data as of Nov 11, 2026

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Quantitative Signal Breakdown

  • NEUTRAL: Price in fair range
  • NEUTRAL: Mixed technical signals (45/100)
  • BULLISH: High volume confirmation
  • BULLISH: Strong upward momentum (+4.3%)
  • BULLISH: Trading 41.9% below Wall St target ($586.69)
  • WARNING: Composite score 50/100 in the bottom quintile — this cohort historically lags the market

Fundamental Context

Forward P/E (Next Year Est.) 17.68
Wall Street Target $586.69 (+41.9%)
Revenue Growth (YoY) 50.9%
Earnings Growth (YoY) 68.7%
Profit Margin 51.1%
Valuation Discount vs History -4.2% cheaper
PE vs Historical 17.7 vs 20.1 CHEAP
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): -4.2% (market-implied from PE analysis)
1-Year Target $395.99 (-4%)
2-Year Target $379.36 (-8%)
3-Year Target $363.42 (-12%)
3-Yr Target (if PE normalizes) (PE: 18→20) $413.27 (0%)
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 19.9, Growth: 33.6%) $1107.43 (+168%)
Base: (SPY PE: 17.7, Growth: 33.6%) $985.63 (+138%)
Bear: (PE: 15.0, Growth: 33.6%) $837.78 (+103%)
📈 Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (26x PE), but valuation improves significantly next year (18x PE) as earnings recover.
Trailing PE: 25.70 | Current EPS (TTM): $15.43
Bull Case $660.98 (+60%)
Analyst growth 51.6%, PE expands to 28.3
Base Case $600.89 (+45%)
Market implied 51.6%, PE stable at 25.7
Bear Case $269.61 (-35%)
Severe decline -20.0%, PE contracts to 21.8
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡 Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 17.7 to 20.1
Stabilization Target: $470.04 (+13.7%)
PE Expansion Potential: +13.7%
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Reddit & Retail Trader Sentiment (TSM)

Bullish 1 Retail Mentions
Reddit / WSB Comments
1
Bullish
Last Tracked
Nov 12, 2026
Daily AI digest
AI Retail Discussion Summary: Reddit & WallStreetBets discussions on TSM are bullish (sentiment score +0.25) across 1 tracked comments.
Aggregated from r/wallstreetbets, r/stocks & StockTwits streams. View All Trending Reddit & WSB Stocks →
Last updated: November 12, 2026 4:36 AM ET
Data refreshes hourly during market hours. Next update: 5:36 AM
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Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL

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Part A: Deep-Dive TSM Research Pages
TSM Technical Chart TSM Price Prediction TSM Intrinsic Value DCF TSM Earnings Date Why is TSM Moving Today? TSM Investment Advisor TSM Fair Price Analyzer TSM Options Chain TSM Options Advisor TSM Options Analysis TSM Competitors
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