Demystifying Taiwan Semiconductor: Insights from 4 Analyst Reviews – Taiwan Semiconductor (NYSE:TSM)

Four analysts offered varying opinions on Taiwan Semiconductor (NYSE:TSM) last quarter, with opinions ranging from bullish to bearish.

The following table summarizes their recent ratings, offering a look at the changing sentiments over the past 30 days and comparing them to the previous months.

Analysts have set price targets for Taiwan Semiconductor for the next twelve months, revealing an average price target of $297.5, a high estimate of $330.00, and a low estimate of $265.00. With an upside of 5.78%, the current average exceeds the previous average price target of $281.25.

Decoding analyst ratings: A detailed overview

The perception of Taiwan Semiconductor by financial experts is analyzed based on recent analyst actions. The following summary presents the top analysts, their recent evaluations and adjustments to ratings and price targets.

Key insights:

• Action taken: In response to changing market dynamics and business performance, analysts update their recommendations. Whether they ‘maintain’, ‘increase’ or ‘decrease’ their position, it signifies their response to recent developments regarding Taiwan Semiconductor. This provides insight into analysts’ perspectives on the current state of the company.
• Judgement: Based on insights, analysts provide qualitative ratings ranging from ‘Outperform’ to ‘Underperform’. These ratings reflect expectations for Taiwan Semiconductor’s relative performance compared to the broader market.
• Price targets: Analysts predict movements in price targets and provide estimates for the future value of Taiwan Semiconductor. Examining current and past targets provides insight into evolving analyst expectations.

To get a bird’s-eye view of Taiwan Semiconductor’s market performance, check out these analyst evaluations alongside key financial indicators. Stay informed and make informed decisions using our rating table.

Stay up to date with Taiwan Semiconductor analyst ratings.

Get to know Taiwan Semiconductor better

Taiwan Semiconductor Manufacturing Co. is the world’s largest chip foundry, with a market share of the mid-60s in 2024. TSMC was founded in 1987 as a joint venture between Philips, the Taiwan government and private investors. It went public in Taiwan in 1994 and as ADR in the US in 1997. TSMC’s scale and high-quality technology allows the company to generate solid operating margins, even in the highly competitive foundry sector. Moreover, 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, looking to apply cutting-edge process technologies to its semiconductor designs. More than 83,000 people work at TSMC.

Making sense of the numbers: Taiwan Semiconductor’s finances

Market Capitalization Analysis: The company’s market capitalization is above the industry average, indicating that it is relatively larger than peers. This may indicate a higher level of investor confidence and market recognition.

Sales growth: Taiwan Semiconductor’s revenue growth over 3 million years has been remarkable. As of June 30, 2025, the company achieved revenue growth of approx 38.65%. This indicates a substantial increase in the company’s revenue. Compared to peers, the company stands out with a growth rate that is higher than the average of peers in the information technology sector.

Net margin: Taiwan Semiconductor’s net margin exceeds industry standards, underscoring the company’s exceptional financial performance. With an impressive 42.65% net margin, the company manages costs effectively and achieves strong profitability.

Return on Equity (ROE): Taiwan Semiconductor’s ROE excels above industry benchmarks and reaches 8.71%. This means robust financial management and efficient use of equity.

Return on Assets (ROA): Taiwan Semiconductor’s ROA stands out and exceeds industry averages. With an impressive ROA of 5.63%the company demonstrates effective asset utilization and strong financial performance.

Debt management: The company uses a balanced debt approach, with a debt-to-equity ratio below industry norms 0.2.

The meaning of analyst ratings explained

Ratings come from analysts or specialists within the banking and financial systems who report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts typically get their information from company conferences and meetings, financial statements, and conversations with key insiders to make their decisions.

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

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