TSMC (TSM) Stock Analysis

June 13, 2026

Here is a fundamental analysis of TSMC (TSM), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

TSM

GSPC

TSMC (TSM) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for TSMC (TSM) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

TSMC (TSM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: TSM	Industry group median
1-Year Return	98.96%	161.54%

Risk

Drawdown

TSM

GSPC

TSMC (TSM) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

TSMC (TSM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: TSM	Industry group median
1-Year Volatility	36.75%	67.17%
Beta	1.38	1.78

Company Profile

TSMC (TSM) trades as an ADR rather than ordinary local shares — read it with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile fields for TSMC (TSM)
Profile Item	TSM
Name	Taiwan Semiconductor Manufacturing Co. Ltd. ADR
Country/Region	Taiwan
GICS Sector	Information Technology
GICS Industry Group	Semiconductors & Semiconductor Equipment
GICS Industry	Semiconductors & Semiconductor Equipment
GICS Sub-Industry	Semiconductors
Market Capitalization	2,198.70 billion USD
Currency	USD
Exchange	NYSE
Listing Date	October 9, 1997
Security Type	ADR

Valuation

Price-to-Earnings Ratio (TTM)

TSMC (TSM) trades at P/E ratio of 36.48, in the cheaper earnings-multiple quartile for its industry. Investors are paying less for each dollar of TTM earnings than they usually pay for comparable businesses.

TSM

Semiconductors & Semiconductor Equipment industry group

36.48

Group distribution

Max: 261.27
Q3: 146.72
Median: 71.81
Q1: 47.83
TSM: 36.48
Min: 6.57

Largest peers

AMD: 169.39
AVGO: 63.68
ASML: 62.49
MU: 46.30
TSM: 36.48
NVDA: 31.42
INTC: --

Where TSMC (TSM) stands on P/E ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Sales Ratio (TTM)

TSMC (TSM) trades at 0.54 on P/S ratio, in the lower sales-valuation quartile for its industry. That points to a cheaper revenue stream than most peers, with margin quality still doing the heavy lifting.

TSM

Semiconductors & Semiconductor Equipment industry group

0.54

Group distribution

Max: 37.84
Q3: 22.05
Median: 10.55
Q1: 4.79
TSM: 0.54
Min: 0.02

Largest peers

AVGO: 24.09
AMD: 22.27
ASML: 21.32
NVDA: 19.61
MU: 19.05
INTC: 11.65
TSM: 0.54

Where TSMC (TSM) stands on P/S ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Book Ratio (MRQ)

TSMC (TSM) trades at 64.85 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

TSM

Semiconductors & Semiconductor Equipment industry group

64.85

Group distribution

TSM: 64.85
Max: 27.08
Q3: 14.21
Median: 7.77
Q1: 3.94
Min: 0.24

Largest peers

ASML: 1,660.67
TSM: 64.85
NVDA: 25.43
AVGO: 20.73
MU: 15.28
AMD: 12.94
INTC: 5.62

Where TSMC (TSM) stands on P/B ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

TSMC (TSM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: TSM	Industry group median
Price-to-Earnings Ratio (TTM)	36.48	71.81
Price-to-Sales Ratio (TTM)	0.54	10.55
Price-to-Book Ratio (MRQ)	64.85	7.77
Free Cash Flow Yield	32.71%	0.71%

Profitability

Return on Equity (TTM)

TSMC (TSM) posts ROE of 36.21%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

TSM

Semiconductors & Semiconductor Equipment industry group

36.21%

Group distribution

Max: 39.82%
TSM: 36.21%
Q3: 17.02%
Median: 6.39%
Q1: -5.42%
Min: -35.15%

Largest peers

NVDA: 114.29%
ASML: 52.24%
MU: 39.82%
AVGO: 37.28%
TSM: 36.21%
AMD: 8.06%
INTC: -2.91%

Where TSMC (TSM) stands on ROE within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Net Profit Margin (TTM)

TSMC (TSM) keeps 46.51% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

TSM

Semiconductors & Semiconductor Equipment industry group

46.51%

Group distribution

Max: 57.72%
TSM: 46.51%
Q3: 20.92%
Median: 7.04%
Q1: -4.69%
Min: -32.92%

Largest peers

NVDA: 62.97%
TSM: 46.51%
MU: 41.49%
AVGO: 38.85%
ASML: 29.71%
AMD: 13.37%
INTC: -5.90%

Where TSMC (TSM) stands on net margin within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Operating Profit Margin (TTM)

TSMC (TSM) turns 58.11% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

TSM

Semiconductors & Semiconductor Equipment industry group

58.11%

Group distribution

Max: 65.60%
TSM: 58.11%
Q3: 21.10%
Median: 9.27%
Q1: -8.85%
Min: -46.64%

Largest peers

MU: 67.62%
NVDA: 65.60%
TSM: 58.11%
AVGO: 48.99%
ASML: 36.02%
AMD: 14.40%
INTC: 6.88%

Where TSMC (TSM) stands on operating margin within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

TSMC (TSM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: TSM	Industry group median
Return on Equity (TTM)	36.21%	6.39%
Return on Assets (TTM)	17.32%	3.06%
Net Profit Margin (TTM)	46.51%	7.04%
Operating Profit Margin (TTM)	58.11%	9.27%
Gross Profit Margin (TTM)	61.87%	46.49%

Financial Strength

Current Ratio (MRQ)

TSMC (TSM) has current ratio of 2.49, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

TSM

Semiconductors & Semiconductor Equipment industry group

2.49

Group distribution

Max: 11.30
Q3: 6.09
Median: 3.28
TSM: 2.49
Q1: 2.37
Min: 0.51

Largest peers

NVDA: 3.44
MU: 2.90
AMD: 2.73
TSM: 2.49
INTC: 2.31
AVGO: 2.24
ASML: 1.36

Where TSMC (TSM) stands on current ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Debt-to-Equity Ratio (MRQ)

TSMC (TSM) has debt-to-equity ratio of 0.18, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

TSM

Semiconductors & Semiconductor Equipment industry group

0.18

Group distribution

Max: 1.44
Q3: 0.63
Median: 0.20
TSM: 0.18
Q1: 0.04
Min: 0.00

Largest peers

AVGO: 0.74
INTC: 0.36
TSM: 0.18
MU: 0.15
ASML: 0.13
NVDA: 0.07
AMD: 0.06

Where TSMC (TSM) stands on debt-to-equity ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength at a Glance

TSMC (TSM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: TSM	Industry group median
Current Ratio (MRQ)	2.49	3.28
Debt-to-Equity Ratio (MRQ)	0.18	0.20
Net Debt / EBITDA	-0.80	-0.25

Dividends

Dividend Yield (TTM)

TSMC (TSM) has dividend yield of 0.90%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.

TSM

Semiconductors & Semiconductor Equipment industry group

0.90%

Group distribution

Max: 0.93%
TSM: 0.90%
Q3: 0.39%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

TSM: 0.90%
AVGO: 0.68%
NVDA: 0.49%
ASML: 0.47%
MU: 0.06%
AMD: 0.00%
INTC: 0.00%

Where TSMC (TSM) stands on dividend yield within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

TSMC (TSM) has payout ratio of 27.93%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

TSM

Semiconductors & Semiconductor Equipment industry group

27.93%

Group distribution

Max: 41.26%
TSM: 27.93%
Q3: 19.10%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

AVGO: 41.26%
TSM: 27.93%
ASML: 25.82%
MU: 2.17%
NVDA: 0.61%
AMD: 0.00%
INTC: 0.00%

Where TSMC (TSM) stands on payout ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

TSMC (TSM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: TSM	Industry group median
Dividend Yield (TTM)	0.90%	0.00%
Dividend Payout Ratio (TTM)	27.93%	0.00%