Market Eyes LiveTaiwan Semiconductor Manufacturing Company Ltd. (TSM) Stock Rating & Analysis
MELANY's data-driven read on Taiwan Semiconductor Manufacturing Company Ltd..
Taiwan Semiconductor Manufacturing Co. is the world's largest dedicated chip foundry, with about 70% market share in 2025. Founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors, it went public in Taiwan in 1994 and as an ADR in the US in 1997. Its scale and high-quality technology support solid operating margins in the competitive foundry business, and the shift toward the fabless model has provided tailwinds for the company.
Why TSM scores 72/100
MELANY scores Taiwan Semiconductor Manufacturing Company Ltd. 72/100 by weighing eight factors. Here is how TSM breaks down.
Whether the price looks cheap or expensive against earnings, growth, and peers.
- Forward P/E 19.1x, earnings growth accelerating
- PEG ratio 0.98 (< 1 = undervalued)
- FCF yield 33.9%
Margins, returns on capital, and balance-sheet strength.
- Gross margin 64%
- ROE 40%
Direction and relative strength of the recent share-price trend.
- 50-day MA above 200-day (golden cross zone)
History of beating or missing estimates, and where estimates are heading.
- Beat EPS estimates 4 of last 4 quarters
- Avg EPS beat +7%
What Wall Street price targets and revisions are signalling.
- Analyst targets 33% upside
Near-term events that could move the stock.
Upside weighed against volatility and drawdown risk.
How the current rate and market regime suits this kind of company.
Key risks for TSM
- Performance partly driven by AI infrastructure (semis), rotation away from this theme would hurt
Sector and theme context
Taiwan Semiconductor Manufacturing Company Ltd. sits in the AI infrastructure (semis) theme, which MELANY currently rates 85/100 for strength. Theme strength feeds TSM's momentum and catalyst factors above.
TSM trade plan (members only)
MELANY has a full position plan for Taiwan Semiconductor Manufacturing Company Ltd.: a smart entry zone, an alert level, position sizing, and quarterly review triggers. It unlocks free when you create an account.
How MELANY rates TSM
MELANY is a rules-based engine that scores every stock from 0 to 100 across eight weighted factors, then re-scores as new price, earnings, and fundamental data arrive. Taiwan Semiconductor Manufacturing Company Ltd.'s 72/100 reflects mature factor weighting for its profile. Position framework managed by score-based check-ins, not a fixed holding period.
Ratings are algorithmic and change with the data. They are research and education, not personalized investment advice.
Frequently asked questions about TSM
Is Taiwan Semiconductor Manufacturing Company Ltd. (TSM) a buy?
As of 2026-08-20, MELANY rated Taiwan Semiconductor Manufacturing Company Ltd. Highest Conviction with a composite score of 72/100. That is a dated snapshot, not the live rating, and it is an algorithmic reading built from eight factors rather than personalized investment advice. Review the factor breakdown above and the disclaimer below before making any decision.
What is Taiwan Semiconductor Manufacturing Company Ltd.'s MELANY score?
Taiwan Semiconductor Manufacturing Company Ltd. (TSM) has a MELANY composite score of 72/100, combining valuation, business quality, price momentum, earnings track record, analyst sentiment, catalyst setup, risk-adjusted profile, and macro fit.
How is the TSM stock rating calculated?
MELANY scores TSM from 0 to 100 across eight weighted factors using live market and fundamental data, then refreshes the rating automatically as new data arrives.
Should I buy Taiwan Semiconductor Manufacturing Company Ltd. stock?
That decision is yours; Market Eyes Live does not give buy or sell advice. What the data says: MELANY rates Taiwan Semiconductor Manufacturing Company Ltd. (TSM) Highest Conviction with a composite of 72/100 as of 2026-08-20. The factor breakdown above shows what is driving that, which is a better basis for a decision than any one-word verdict.
What is the TSM stock price forecast?
MELANY does not publish price targets or forecasts for TSM. Predicting a future price is exactly the kind of false precision the confidence framework avoids. Instead it scores today's setup, 72/100 across eight factors for Taiwan Semiconductor Manufacturing Company Ltd., and re-scores automatically as new price, earnings, and fundamental data arrive.
Is TSM stock overvalued or undervalued?
MELANY's valuation factor currently reads 62/100 for Taiwan Semiconductor Manufacturing Company Ltd., where a higher score means the price looks more attractive against earnings, growth, and peers. Scores in the 70s and above read as attractively priced, the mid range as roughly fair, and low scores as stretched. The factor breakdown above shows what drives TSM's read.
What price should I buy TSM at?
Rather than chasing the current price, MELANY computes a smart entry zone for TSM: the price area where risk and reward actually favor a new position, plus an alert level and position sizing. The exact levels unlock free when you create a Market Eyes Live account.
What are the risks of buying TSM stock?
The top risks MELANY currently flags for Taiwan Semiconductor Manufacturing Company Ltd.: Performance partly driven by AI infrastructure (semis), rotation away from this theme would hurt. The rating on this page already weighs these against the bullish factors; see the risk-adjusted profile score in the breakdown above.
Is Taiwan Semiconductor Manufacturing Company Ltd. a good long-term investment?
For long-term durability the two factors that matter most are business quality, which MELANY scores 96/100 for Taiwan Semiconductor Manufacturing Company Ltd., and earnings track record, at 84/100. The 72/100 composite blends those with six shorter-horizon factors. Durable quality at a fair price is the long-term case to test; this is research, not personalized investment advice.
Will TSM stock go up?
Nobody can promise a stock's direction, and Market Eyes Live does not predict prices. The measurable part: MELANY's price momentum factor reads 66/100 for TSM right now, and the catalyst setup factor tracks whether near-term events could move it. Both re-score automatically as the data changes.
How current is this TSM rating?
The rating on this page is a snapshot of MELANY's read as of 2026-08-20. The price shown updates live, but the score is not recomputed on this page. MELANY re-scores TSM continuously as new price, earnings, and fundamental data arrive, and that current rating is free in the app.
TSM's entry zone, live alerts, and full trade plan are free either way. The app is our flagship.