Taiwan Semiconductor Manufacturing Company Limited (TSM) has a MoatMap StockRank of 100/100 based on Quality (80/100), Value (61/100), and Momentum (71/100) factor scores. The current signal is STRONG BUY. Taiwan Semiconductor Manufacturing Company is the undisputed leader in advanced semiconductor fabrication, making it a pivotal 'AI Enabler' and indispensable to the multi-decade AI growth cycle. Despite its large market cap, the market is likely underestimating the long-term, compounding effect of its infrastructure play, aligning with the contrarian view of global supply-side beneficiaries outside US mega-caps. It embodies a 'quality compounder' with an un-copyable technological moat, strong pricing power, and continuous reinvestment, fitting Terry Smith's criteria despite its asset-heavy nature. The observable demand for AI chips ensures a long growth runway, while its strategic importance ensures a form of Nick Sleep's 'destination business' where scale economies are shared via cost-per-transistor reduction, benefitting customers.
Taiwan Semiconductor Manufacturing Company (TSMC) is the world's largest dedicated independent semiconductor foundry, providing advanced integrated circuit manufacturing services to fabless design companies. It maintains a dominant market position due to its technological leadership in leading-edge process nodes and massive capital investments, acting as a critical supplier for major global tech companies.
| Price | $412.32 |
| Market Cap | $2.1T |
| P/E (TTM) | 35.21 |
| P/E (Forward) | 21.13 |
| Price/Book | 63.07 |
| Return on Equity | 36.2% |
| Return on Invested Capital | 32.0% |
| Debt/Equity | 18.45 |
| Gross Margin | 61.9% |
| Operating Margin | 58.1% |
| Revenue Growth | 35.1% |
| Dividend Yield | 0.9% |
| Free Cash Flow | $719.2B |
Taiwan Semiconductor Manufacturing Company Limited operates in the Semiconductors industry, part of the Technology sector (Taiwan).