Taiwan Semiconductor Mfg (TSM) Stock Analysis

October 26, 2026

This is a peer-relative look at Taiwan Semiconductor Mfg (TSM): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Semiconductors & Semiconductor Equipment peers, so every number reads in context rather than in isolation.

Company Profile

Taiwan Semiconductor Mfg (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 Taiwan Semiconductor Mfg (TSM)
Profile Item	TSM
Name	Taiwan Semiconductor Manufacturing Company 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	2,170.59 billion USD
Currency	USD
Exchange	NYSE
Listing Date	October 9, 1997
Security Type	ADR

Price Performance

Cumulative Growth

TSM

GSPC

Taiwan Semiconductor Mfg (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 Taiwan Semiconductor Mfg (TSM) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Taiwan Semiconductor Mfg (TSM) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Taiwan Semiconductor Mfg (TSM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: TSM	Industry group median
Total Return (1Y)	45.48%	28.56%
Total Return (3Y, Annualized)	68.46%	24.37%
Total Return (5Y, Annualized)	31.75%	10.31%

Risk Profile

Drawdown History

TSM

GSPC

Taiwan Semiconductor Mfg (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.

Return Distribution

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Distribution of monthly total returns for Taiwan Semiconductor Mfg (TSM) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Taiwan Semiconductor Mfg (TSM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: TSM	Industry group median
Volatility (1Y, Annualized)	39.14%	71.41%
Beta (5Y)	1.43	1.85
Max Drawdown (5Y)	-56.47%	-64.89%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. TSM is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Taiwan Semiconductor Mfg (TSM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: TSM	Industry group median
Sharpe Ratio (1Y)	1.05	0.37
Sortino Ratio (1Y)	1.58	0.56

Profitability

ROE (TTM)

Taiwan Semiconductor Mfg (TSM) posts ROE of 41.86%, 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

41.86%

Group distribution

Max: 44.25%
TSM: 41.86%
Q3: 21.16%
Median: 9.12%
Q1: -2.07%
Min: -16.89%

Largest peers

NVDA: 117.21%
SKHY: 92.68%
MU: 88.26%
ASML: 65.64%
AVGO: 44.25%
TSM: 41.86%
AMD: 10.20%

Where Taiwan Semiconductor Mfg (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 Margin (TTM)

Taiwan Semiconductor Mfg (TSM) keeps 51.12% 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

51.12%

Group distribution

Max: 58.15%
TSM: 51.12%
Q3: 24.02%
Median: 10.09%
Q1: 0.00%
Min: -34.50%

Largest peers

SKHY: 85.62%
MU: 63.80%
NVDA: 63.66%
TSM: 51.12%
AVGO: 42.94%
ASML: 34.14%
AMD: 15.58%

Where Taiwan Semiconductor Mfg (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 Margin (TTM)

Taiwan Semiconductor Mfg (TSM) turns 58.66% of revenue into operating profit on operating margin, above the industry benchmark range. Core operations are retaining an unusually large share before interest and taxes, which points to pricing power or tight cost control if the margin is sustainable.

TSM

Semiconductors & Semiconductor Equipment industry group

58.66%

Group distribution

TSM: 58.66%
Max: 54.31%
Q3: 23.80%
Median: 15.10%
Q1: 3.21%
Min: -27.51%

Largest peers

MU: 80.68%
SKHY: 76.33%
NVDA: 66.24%
TSM: 58.66%
AVGO: 54.31%
ASML: 44.36%
AMD: 17.25%

Where Taiwan Semiconductor Mfg (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 Metrics

Taiwan Semiconductor Mfg (TSM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: TSM	Industry group median
ROE (TTM)	41.86%	9.12%
ROA (TTM)	20.58%	4.13%
Net Margin (TTM)	51.12%	10.09%
Operating Margin (TTM)	58.66%	15.10%
Gross Margin (TTM)	65.85%	49.09%

Growth

Revenue Growth

Taiwan Semiconductor Mfg (TSM) grew revenue 31.61%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.

Taiwan Semiconductor Mfg (TSM): Revenue Growth across different time periods, set against Semiconductors & Semiconductor Equipment industry-group medians.

EPS Growth

Taiwan Semiconductor Mfg (TSM) grew earnings per share 44.69%, in the upper peer quartile. Per-share profits are compounding faster than at most industry peers.

Taiwan Semiconductor Mfg (TSM): EPS Growth across different time periods, set against Semiconductors & Semiconductor Equipment industry-group medians.

Growth Metrics

Taiwan Semiconductor Mfg (TSM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: TSM	Industry group median
Revenue Growth (YoY)	31.61%	9.94%
Revenue Growth (3Y CAGR)	18.94%	-0.01%
EPS Growth (YoY)	44.69%	4.81%
EPS Growth (3Y CAGR)	18.65%	-10.01%

Financial Strength

Current Ratio (MRQ)

Taiwan Semiconductor Mfg (TSM) has current ratio of 2.51, 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

2.51

Group distribution

Max: 9.75
Q3: 5.37
Median: 3.30
TSM: 2.51
Q1: 2.25
Min: 1.03

Largest peers

NVDA: 4.59
MU: 3.31
AMD: 2.61
SKHY: 2.59
TSM: 2.51
AVGO: 2.50
ASML: 1.49

Where Taiwan Semiconductor Mfg (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 / Equity (MRQ)

Taiwan Semiconductor Mfg (TSM) has debt-to-equity ratio of 0.12, 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

0.12

Group distribution

Max: 1.44
Q3: 0.65
Median: 0.18
TSM: 0.12
Q1: 0.04
Min: 0.00

Largest peers

AVGO: 0.60
NVDA: 0.17
TSM: 0.12
ASML: 0.09
SKHY: 0.08
AMD: 0.06
MU: 0.04

Where Taiwan Semiconductor Mfg (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 Metrics

Taiwan Semiconductor Mfg (TSM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: TSM	Industry group median
Current Ratio (MRQ)	2.51	3.30
Debt / Equity (MRQ)	0.12	0.18
Net Debt / EBITDA	-0.89	-0.55

Dividends

Dividend Yield (TTM)

Taiwan Semiconductor Mfg (TSM) has dividend yield of 1.46%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.

TSM

Semiconductors & Semiconductor Equipment industry group

1.46%

Group distribution

TSM: 1.46%
Max: 1.12%
Q3: 0.48%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

SKHY: 2,847.60%
TSM: 1.46%
AVGO: 0.80%
ASML: 0.48%
NVDA: 0.13%
MU: 0.07%
AMD: 0.00%

Where Taiwan Semiconductor Mfg (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)

Taiwan Semiconductor Mfg (TSM) has payout ratio of 24.46%, 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

24.46%

Group distribution

Max: 45.89%
TSM: 24.46%
Q3: 19.14%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

AVGO: 32.44%
TSM: 24.46%
ASML: 22.26%
NVDA: 3.54%
MU: 0.71%
SKHY: 0.00%
AMD: 0.00%

Where Taiwan Semiconductor Mfg (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.

Dividend Metrics

Taiwan Semiconductor Mfg (TSM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: TSM	Industry group median
Dividend Yield (TTM)	1.46%	0.00%
Dividend Payout Ratio (TTM)	24.46%	0.00%

Valuation

P/E Ratio (TTM)

Taiwan Semiconductor Mfg (TSM) trades at P/E ratio of 27.12, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

TSM

Semiconductors & Semiconductor Equipment industry group

27.12

Group distribution

Max: 131.83
Q3: 75.24
Median: 42.42
TSM: 27.12
Q1: 26.67
Min: 8.74

Largest peers

AMD: 131.83
AVGO: 42.95
ASML: 38.68
TSM: 27.12
NVDA: 26.67
MU: 11.81
SKHY: 8.74

Where Taiwan Semiconductor Mfg (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.

P/S Ratio (TTM)

Taiwan Semiconductor Mfg (TSM) trades at 0.44 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

0.44

Group distribution

Max: 29.47
Q3: 13.72
Median: 6.92
Q1: 3.08
TSM: 0.44
Min: 0.01

Largest peers

AMD: 20.42
AVGO: 17.23
NVDA: 16.81
ASML: 15.35
MU: 7.45
TSM: 0.44
SKHY: 0.01

Where Taiwan Semiconductor Mfg (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.

P/B Ratio (MRQ)

Taiwan Semiconductor Mfg (TSM) trades at 79.87 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

79.87

Group distribution

TSM: 79.87
Max: 16.75
Q3: 8.96
Median: 4.96
Q1: 2.62
Min: 0.16

Largest peers

ASML: 1,349.62
TSM: 79.87
NVDA: 22.25
AVGO: 15.40
AMD: 12.55
MU: 7.17
SKHY: 4.93

Where Taiwan Semiconductor Mfg (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 Metrics

Taiwan Semiconductor Mfg (TSM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: TSM	Industry group median
P/E Ratio (TTM)	27.12	42.42
P/S Ratio (TTM)	0.44	6.92
P/B Ratio (MRQ)	79.87	4.96
Free Cash Flow Yield (TTM)	55.43%	1.10%