4 Analysts Have This To Say About Taiwan Semiconductor

In the latest quarter, 4 analysts provided ratings for Taiwan Semiconductor TSM, showcasing a mix of bullish and bearish perspectives.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $232.5, a high estimate of $250.00, and a low estimate of $215.00. This current average has decreased by 3.12% from the previous average price target of $240.00.

Deciphering Analyst Ratings: An In-Depth Analysis

An in-depth analysis of recent analyst actions unveils how financial experts perceive Taiwan Semiconductor. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Taiwan Semiconductor. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Taiwan Semiconductor compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Taiwan Semiconductor's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Taiwan Semiconductor's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Taiwan Semiconductor analyst ratings.

Discovering Taiwan Semiconductor: A Closer Look

Taiwan Semiconductor Manufacturing Co. is the world's largest dedicated chip foundry, with mid-60s market share in 2024. TSMC was 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. TSMC's scale and high-quality technology allow the firm to generate solid operating margins, even in the highly competitive foundry business. Furthermore, the shift to the fabless business model has created tailwinds for TSMC. The foundry leader has an illustrious customer base, including Apple, AMD, and Nvidia, that looks to apply cutting-edge process technologies to its semiconductor designs. TSMC employs more than 73,000 people.

Taiwan Semiconductor's Financial Performance

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Positive Revenue Trend: Examining Taiwan Semiconductor's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 41.61% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Taiwan Semiconductor's net margin excels beyond industry benchmarks, reaching 42.98%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Taiwan Semiconductor's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 8.19%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Taiwan Semiconductor's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 5.22%, the company showcases efficient use of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.22, Taiwan Semiconductor adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.