TSMC - AI Stock Analysis

Analysis generated February 18, 2026

Taiwan Semiconductor Manufacturing Company (TSMC) is the largest dedicated independent semiconductor foundry in the world. It primarily manufactures and sells integrated circuits and other semiconductor devices, while providing foundry services. TSMC plays a critical role in the electronics industry, serving a broad range of companies, including the world’s leading technology giants.

Fundamental Analysis

The most recent financials for TSMC indicate strong growth. Revenue for the last quarter was 1,056B, which is an increase of 6.67% compared to the previous quarter, and a notable increase of 21.59% compared to the same quarter last year. This steady growth over both short and long-term periods is a positive indicator for the stock.

Net income was 511B for the last quarter, representing an increase of 12.87% over the previous quarter, and an impressive 36.26% increase over the same quarter last year. This continued profitability growth underlines TSMC’s operational efficiency and strong financial health.

EBITDA was recorded at 760B, with a growth of 10.46% from the previous quarter and a year-over-year increase of 27.52%. The strong EBITDA growth further showcases the company's steady operational performance.

However, the current Price-to-Earnings (P/E) ratio for TSMC sits at 34.73. This higher-than-average P/E ratio could indicate that the stock is potentially overvalued, which investors should note.

Technical Analysis

The current stock price of TSMC is 364.20. Over the past month, the price has risen by 6.37%, signaling a positive short-term trend. Over the past year, the stock price has surged by 83.63%, indicating a robust long-term growth trend.

The Simple Moving Average over the last 10 days (SMA10) stands at 365.34, which is an increase from the previous SMA10 of 363.80. This trend suggests a potential upward trajectory in the future price movement.

The Relative Strength Index (RSI) is at 33.3, signaling a neutral market sentiment at this point in time.

Alternative Data Analysis

When examining alternative data, TSMC shows a mix of signals. The company currently has 319 open positions, a reduction of 36% over the past few months. This reduction might indicate cost-cutting measures, which is not always a favorable sign for a growth company.

Employee sentiment at TSMC is neutral, hinting at a stable internal view of the company’s prospects.

Customer acquisition data shows that TSMC’s webpage has an estimated 930,000 visitors with no noteworthy trend in the number of visitors. However, customer engagement on social media has shown a positive trend with a 13% increase in followers on their Twitter page, now totaling over 11,000 followers. This uptick might reflect increasing market interest and confidence.

According to AltIndex’s AI score, which combines fundamental, technical, and alternative data, TSMC scores 61. This is considered a buy signal.

Conclusion

In conclusion, TSMC presents a robust financial growth story with significant increases in revenue, net income, and EBITDA. The technical analysis also supports a bullish outlook with positive trends in both short and long-term price movements. However, some caution should be exercised due to the high P/E ratio and a possible implication of overvaluation. The alternative data presents a mixed picture with signs that the company may be focusing on optimizing costs.

Based on the comprehensive analysis, TSMC remains a strong consideration for investors. Despite minor concerns, the overall financial health, market position, and consistent growth underscore its potential as a viable investment.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.