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TSMC - AI Stock Analysis
Analysis generated June 5, 2025
Taiwan Semiconductor Manufacturing Company (TSMC) is a leading semiconductor manufacturer globally and is one of Taiwan’s flagship technology firms. Established in 1987, TSMC was the world's first dedicated semiconductor foundry, and it has since grown to become the largest semiconductor foundry, holding a dominant market share. TSMC's strategic partnerships with industry giants like Apple, Qualcomm, and Nvidia have further solidified its market position. The company's robust technological advancements and highly efficient production capabilities have enabled it to produce cutting-edge chips that power a myriad of electronic devices, making it a keystone in the global tech supply chain.
Fundamental Analysis
Revenue: For the last quarter, TSMC reported revenue of 839 billion. This represents a slight decline of 3.36% compared to the preceding quarter, which is a point of concern as it indicates potential short-term volatility. However, when compared to the same quarter last year, there is a significant increase of 41.61%, suggesting robust year-over-year growth. This year-over-year increase demonstrates TSMC's strong market presence and growing demand for its semiconductor solutions.
Net Income: The net income for TSMC in the last quarter was 362 billion, down 3.50% from the previous quarter. Despite this quarterly drop, there is a 60.35% increase from the same quarter the previous year. This substantial annual growth in net income indicates improved profitability and effective cost management over the past year.
EBITDA: TSMC’s EBITDA for the last quarter stood at 570 billion. This figure represents a 4.29% decrease from the previous quarter, mirroring the revenue and net income trends. Nonetheless, compared to the same quarter the previous year, EBITDA increased by 33.21%, indicating strong operational efficiency and solid earnings before interest, taxes, depreciation, and amortization.
PE Ratio: The current Price-to-Earnings (P/E) ratio is 23.69. This ratio suggests that TSMC's stock is neither undervalued nor overvalued in the current market context, providing a balanced view for potential investors. It falls within a normal and acceptable range for a technology company of TSMC's stature.
Technical Analysis
Stock Price: The current stock price is 204.80. This reflects a 16.10% increase compared to a month ago, suggesting a positive short-term trend. Over the past year, the stock price has risen by 28.14%, indicating a strong long-term bullish trend. These trends suggest robust investor confidence and positive market sentiment towards TSMC.
SMA10: The current Simple Moving Average (SMA10) is 197.06, slightly higher than the previous SMA10 of 195.78. This incremental increase suggests a potential upward trend in price movement, lending additional support to the positive short-term outlook.
RSI: The Relative Strength Index (RSI) stands at 74.6, indicating a potentially overbought condition. An RSI above 70 is generally considered overbought, which could signal a potential pullback or price correction in the near term. Investors should be cautious of this bearish signal despite the recent upward trends.
Alternative Data Analysis
Job Postings and Employee Sentiment: TSMC has a reported 526 open positions, reflecting a 10% increase in the last couple of months. This uptick in job postings indicates that TSMC is looking to grow and expand, which can be seen as a healthy sign for the company's future business prospects. Employee sentiment remains neutral, which suggests stability within the workforce.
Customer Acquisition: The company has an estimated 960,000 visitors to its webpage, with no significant change in traffic over the last couple of months. This steady traffic can be interpreted as sustained interest in the company’s offerings and a stable customer base.
Customer Engagement: TSMC’s Twitter following has grown by 13% to 11,000 followers in the past few months. This growth in social media following indicates increased interest and engagement with the company, which is a positive sign from a marketing and public perception standpoint.
AltIndex AI Score: The AI score for predicting TSMC’s stock price, based on fundamental, technical, and alternative data analysis, is 61. This score falls within the "buy" signal range, indicating favorable conditions for purchasing the stock.
Conclusion and Recommendation
Based on the comprehensive analysis, TSMC demonstrates strong year-over-year growth in revenue, net income, and EBITDA, highlighting its robust market position and operational efficiency. While short-term declines in these financial metrics could be a point of concern, the long-term growth trajectory remains positive.
The technical analysis shows a bullish trend with significant recent stock price increases, suggesting favorable market sentiment. However, the high RSI indicates a potential overbought condition, warranting caution for immediate investments.
The alternative data analysis presents a favorable outlook with increasing job postings, stable customer acquisition, and growing social media engagement. The AI score supports a "buy" signal based on the compiled data.
Considering all factors, the comprehensive analysis suggests a cautiously optimistic outlook for TSMC. While short-term volatility exists, the long-term growth potential and strong market positioning make it a compelling investment opportunity for those with a tolerance for moderate risk.
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.
