TSMC (TSM): analysis in plain words
Is TSMC cheap or expensive? How it makes money, whether it grows and its risks, explained in plain words and with its official accounts.
TSMC (TSM) is listed on the NYSE and we classify it in semiconductors. Below are its key dated figures, how it makes money, how it compares with its sector, what works for and against TSMC according to those figures, and the questions people ask most about the stock. No buy or sell tips.
TSMC (TSM) key figures as of November 4, 2026
| Figure | Value | What it measures |
|---|---|---|
| Share price | $395.75 | Last price on November 4, 2026 |
| P/E ratio (TTM) | 25.6x | Price over earnings per share |
| Revenue growth | +50.9% | Latest quarter vs the same quarter a year earlier |
| Net margin (TTM) | 51.1% | Profit for every 100 of sales |
| Net debt / EBITDA | Net cash (more cash than debt) | Years of operating profit to repay debt |
| Dividend yield | 0.93% | Annual dividend over price |
| Market cap | $2.05 trillion | What the stock market values it at |
The TSMC figures come from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026. Any TSM figure that is not available shows as N/A: we do not estimate it.
How TSMC makes money
Taiwan Semiconductor Manufacturing makes chips designed by other companies, including Apple, Nvidia, AMD, Qualcomm and Broadcom, rather than selling its own branded chips. It reports sales by platform: high-performance computing, the largest, covering AI and data center chips, followed by smartphones, the internet of things and automotive. Its ADRs trade in New York.
Over the last 12 months, TSMC brought in revenue of TWD 4.94 trillion. For every 100 it sells, TSMC keeps 65.8 after the direct cost of what it sells (gross margin) and 58.7 after all operating costs (operating margin). With 76,907 full-time employees, that is about TWD 64 million of revenue per employee.
TSMC against its sector
To know whether a TSMC figure is high or low you have to put it next to similar companies. This table compares TSMC with the median of the 14 semiconductors companies Fintols covers, with data as of November 4, 2026.
| Figure | TSMC | semiconductors median |
|---|---|---|
| P/E | 25.6x | 37.9x (14) |
| Revenue growth | +50.9% | +39.6% (15) |
| Net margin | 51.1% | 32.3% (15) |
| Dividend yield | 0.93% | 0.57% (15) |
| Net debt / EBITDA | -0.9x | -0.2x (15) |
In short, against the typical semiconductors company, TSMC trades on a lower P/E, grows faster and earns a wider margin. By size, TSMC ranks number 2 of 13 semiconductors companies quoted in USD on Fintols.
The bull case for TSMC
What works in favour of TSMC, according to its figures as of November 4, 2026:
- TSMC grew sales +50.9% in its latest quarter against the same quarter a year earlier, while the median semiconductors company Fintols tracks grew +39.6%.
- TSMC keeps 51.1 of every 100 it sells as net profit, against 32.3 for the median semiconductors company: a margin like that leaves money to invest, buy back shares or pay dividends.
- Analysts expect TSMC earnings to rise: its P/E on the next 12 months of estimated earnings is 16.9x, below the current 25.6x.
The main risk for TSMC
The TSMC figures as of November 4, 2026 show no clear red flag (no heavy debt, no losses, no falling sales). Its main risk is the one built into its business: the chip cycle: years of heavy customer spending are usually followed by years of cuts.
Frequently asked questions about TSMC
Is it a good time to buy TSMC stock?
Fintols does not tell you whether to buy or sell TSMC, and nobody knows what the price will do tomorrow. What we can show you is where it stands today. As of November 4, 2026, TSMC stock trades at $395.75, 19% below its 52-week high ($487.47) and 48% above its low ($266.82). Its P/E is 25.6x against a semiconductors median of 37.9x, and 16.9x on the earnings analysts expect over the next 12 months. With TSMC, as with any stock, timing matters less than understanding the business, investing for the long run and not betting everything on a single company.
Does TSMC pay a dividend?
Yes. As of November 4, 2026, TSMC pays $3.77 per share a year, which at today's price is a yield of 0.93%. It uses 24% of its profit to pay it, which leaves room to keep paying it if profit dips. Its average dividend yield over the last five years is 1.33%. The semiconductors median on Fintols is 0.57%.
Is TSMC stock expensive?
It depends on what you compare it with. On P/E, TSMC trades at 25.6x its last 12 months of earnings: cheaper than the semiconductors median (37.9x). Including its debt, TSMC is valued at 3.8x its EBITDA (EV/EBITDA). A high P/E alone does not make TSMC expensive: it can be justified if earnings grow fast, and a low one can reflect a business in trouble.
Who are TSMC's competitors?
On Fintols we compare TSMC with Broadcom, Nvidia and AMD, which are also in semiconductors. As of November 4, 2026, Broadcom is worth $1.55 trillion and trades on a P/E of 41.6; Nvidia is worth $4.83 trillion and trades on a P/E of 25.3; AMD is worth $797.9 billion and trades on a P/E of 124.7. Each has a side-by-side comparison with TSMC below.
TSMC competitors
- Broadcom (AVGO) analysis · TSMC vs Broadcom comparison
- Nvidia (NVDA) analysis · TSMC vs Nvidia comparison
- AMD (AMD) analysis · TSMC vs AMD comparison
To understand TSMC better
- Using AI to Analyze Stocks: A Practical, Careful Guide
- 7 Common Beginner Investing Mistakes (and How to Avoid Them)
More companies like TSMC: semiconductors stocks. Open the full TSM analysis with its valuation and scenarios. Educational content about TSMC, not investment advice.