Taiwan Semiconductor Manufacturing (NYSE:TSM) shares have seen modest pressure recently, closing at $286.50 and posting a 6% dip over the past month. Investors may be watching closely for catalysts, as the company’s longer-term gains remain strong.
See our latest analysis for Taiwan Semiconductor Manufacturing.
This latest dip comes after a strong run for Taiwan Semiconductor Manufacturing, with momentum fading slightly in recent weeks. Even so, the company’s year-to-date share price return remains an impressive 42%, and its one-year total shareholder return of nearly 44% highlights the broader growth story at play.
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With shares pulling back despite robust performance metrics, the debate is on: is Taiwan Semiconductor Manufacturing trading below its true value, or are investors already factoring in all the future growth potential at current prices?
With a fair value set at $310 and the stock closing at $286.50, Taiwan Semiconductor Manufacturing is seen as having more room to run, according to oscargarcia’s widely followed narrative. The gap between the current price and narrative fair value reflects bullish expectations for strong growth and relentless execution.
TSMC is the central pillar of the global semiconductor ecosystem, powering the AI revolution with unmatched scale, cutting-edge process technology, and disciplined execution. With record profits, dominant client base, and massive expansion underway, both in Taiwan and abroad, it stands as a low-risk way to own the AI infrastructure wave. Although geopolitical and trade risks loom, its moat, margins, and market position offer a rare combination of growth, profitability, and stability.
Read the complete narrative.
What powers this valuation premium? Dive into the details to see which blockbuster earnings figures, surging revenue projections, and ironclad margins shape this bold target. One key assumption could surprise you. Find out what drives this number behind the scenes.
Result: Fair Value of $310 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, challenges such as rising costs from global expansion and heightened geopolitical tensions could quickly shift sentiment away from the current bullish view.
Find out about the key risks to this Taiwan Semiconductor Manufacturing narrative.
Looking at Taiwan Semiconductor Manufacturing through the lens of our SWS DCF model provides a different perspective. The DCF estimate of fair value is $247.94, which is noticeably below the current price. This suggests the market might be leaning optimistic, or that growth may already be fully reflected in the price.