TSMC - AI Stock Analysis

Analysis generated October 17, 2025

Taiwan Semiconductor Manufacturing Company (TSMC) is the world's largest dedicated independent semiconductor foundry. TSMC plays a vital role in the semiconductor industry, primarily fabricating chips for tech giants, including Apple, NVIDIA, and AMD. Its dominance in advanced manufacturing technologies, particularly in 5nm and 7nm processes, sets it apart from peers. With a formidable R&D focus, TSMC continues to innovate and expand its capabilities, ensuring its lead in the semiconductor foundry market.

Fundamental Analysis

For the last quarter, TSMC reported a revenue of 934 billion. This represents an increase of 11.26% from the previous quarter, a positive indicator of growth. Compared to the same quarter last year, there's a remarkable increase of 38.65%, showcasing strong year-over-year performance.

TSMC's net income for the last quarter reached 398 billion, a growth of 10.15% from the prior quarter. When compared year-over-year, net income showed an even more significant rise of 60.69%, indicating robust profitability.

EBITDA for the quarter was 856 billion, with an impressive increase of 44.72% over the previous quarter. Year-over-year, EBITDA surged by 80.60%, further emphasizing the company's strong operational performance.

However, with a current P/E ratio of 33.56, TSMC may be considered overvalued by some investors. A high P/E ratio potentially suggests that the stock price is high relative to the company’s earnings, which could be a bearish sign.

Technical Analysis

Today's stock price stands at 295.08, which is an increase of 12.29% compared to a month ago, indicating a positive short-term trend. Compared to a year ago, the price has surged by 49.00%, suggesting a strong long-term upward trend.

The current Simple Moving Average (SMA10) is 294.48, slightly higher than the previous SMA10 of 294.38. This marginal increase indicates a potential upward trend in price movement.

The Relative Strength Index (RSI) is currently at 38.9, suggesting a neutral condition. This means the stock isn't overbought or oversold, indicating a balanced momentum.

Alternative Data Analysis

Examining job postings and employee sentiment, TSMC has 447 open positions, down by 7% in the last couple of months. This could suggest efforts to improve margins or cut costs, which is not necessarily a great sign for a growing company.

On the other hand, web traffic to TSMC's site has seen a bullish trend with an estimated 940,000 visitors, up by 38% over the last few months, possibly indicating an increase in customer interest.

Customer engagement on social media is also on the rise, with TSMC's Twitter following up by 13% in the past couple of months, totaling 11,000 followers. This could reflect increasing interest and potential investor sentiment toward the company.

Lastly, AltIndex's AI score for TSMC is 58, which signals a 'Hold'. This combines insights from fundamental, technical, and alternative data analyses.

Conclusion and Recommendation

TSMC exhibits strong financial performance with impressive year-over-year growth in revenue, net income, and EBITDA. Although the current P/E ratio suggests a possible overvaluation, recent stock performance and trends indicate overall bullish sentiment. However, a slight reduction in job postings and neutral employee sentiment might reflect some internal cost optimization strategies.

Given the balanced nature of the fundamental, technical, and alternative data analyses, investors might consider taking a cautious approach. The 'Hold' recommendation from AltIndex suggests that TSMC's stock is fairly valued at present and does not call for immediate buying or selling actions. Investors should consider keeping an eye on further developments and overall market conditions.

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.