TSM stock: buy or sell?

TSM stock price: $49.28 -0.94% At close on October 18th, 2019

Updated on:
October 18th, 2019

5

After yesterday all time highs, Taiwan Semiconductor Manufacturing depreciated slightly to $49.28. With Oct 18th it's been 3 sliding days in a row, loosing $-1.11 (-2.22%).

Taiwan Semiconductor Manufacturing Company Limited., together with its subsidiaries, engages in the computer-aided design, manufacture, packaging, testing, sale, and marketing of integrated circuits, color filters, and other semiconductor devices primarily in Taiwan.

Should I buy TSM stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Following a trading plan helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, 2 buy setups are elegible for Taiwan Semiconductor Manufacturing stock now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Taiwan Semiconductor Manufacturing stock a buy?

Banks and financial institutions post stock ratings everyday. At Stocks2.com, we detected 5 ratings published for TSM stock in the last 30 days.

Is TSM a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-4Morgan StanleyEqual WeightOverweight
2019-9-30Goldman Sachs GroupBuyConviction-Buy
2019-7-19CLSAUnderperformBuy
2019-5-7Goldman Sachs Groupn/aBuy
2019-1-17CLSAOutperformUnderperform

TSM stock analysis

Daily outlook

Taiwan Semiconductor Manufacturing depreciated -0.94% to $49.28 after yesterday all time highs.

After topping to all time highs on Thursday, Taiwan Semiconductor Manufacturing depreciated -0.94% on October 18th to $49.28. From a daily perspective, TSM is in a short term uptrend after plotting its last bottom ($46.24, on October/3) higher than the previous bottom, and its last top ($51.21, on Thursday) also over the previous top. Now trading in between its last bottom and last top TSM might consolidate in a plain range, waiting to break out over $51.21 or down under $46.24. Since June when TSM stock price broke up the SMA200d line, it gained $11.39 (30.06%). On August, SMA50d and SMA100d crossed up triggering a rise of 21.17%. On Thursday, TSM hit new all time highs, pushing higher previous ATH of $51.13 recorded on Wednesday. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

TSM stock chart (daily)

Weekly outlook

Shares of Taiwan Semiconductor Manufacturing closed this week at $49.28 after topping to a new all time high ($51.21) even it couldn't close with gains and remained stable an ugly -0.28%.

Price pattern shows an uptrend with two rising tops and bottoms, and now finally trading above the $44.56 resistance. Since mid June when TSM stock price broke up the SMA40w line, it gained $12.89 (35.42%). Since SMA20d and SMA40w crossed up early May, TSM price climbed $6.29 per share (14.63%).

TSM stock chart (weekly)

TSM stock price history

TSM stock went public on October 9th, 1997 with a price of $3.151. Since then, TSM stock surged a 1,464.40%, with a yearly average of 66.60%. If you had invested right after TSM's IPO a $1,000 in TSM stock in 1997, it would worth $14,644.00 today.

1: Adjusted price after possible price splits or reverse-splits.

TSM stock historical price chart

TSM stock reached all-time highs on Thursday with a price of $51.21.

TSM stock price target is $52.50

Nobody can reliably foresee how stock prices may evolve in the future. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We found 2 price forecasts for Taiwan Semiconductor Manufacturing stock published in the last 30 days:
TSM stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-30Goldman Sachs GroupUpgradesn/a$55.00-
2019-5-7Goldman Sachs GroupInitiatesn/a$50.00-
(in average)$0.00$52.500.0%
Moving in a range from $55.00 and $50.00, the price prediction for Taiwan Semiconductor Manufacturing stock is $52.50. In average, analysts' outlook on TSM price target is stable from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On January, Taiwan Semiconductor Manufacturing presented its financial report, close to analysts' consensus and posted a $0.63 Earnings per Share. Unfortunately, reported EPS is not yet available in our database.
TSM earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a3.38n/a
2017-Q2-n/a2.56n/a
2017-Q3-n/a3.47n/a
2017-Q4-n/a3.83n/a
2018-Q12018-04-190.60.59-1.7%
2018-Q22018-07-190.450.474.4%
2018-Q32018-10-18n/a0.56n/a
2018-Q42019-01-170.630.630.0%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual revenues report draw a fine increase of 5.52% to $1,031,360.00 M dollars. By contrast, its earnings margin (compared to sales) stayed stable to 35.20%, that is $363,053.00 million.

TSM annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$597,000 M-$188,150 M31.5%-
2014$762,835 M27.78%$254,301 M33.3%35.16%
2015$843,512 M10.58%$302,851 M35.9%19.09%
2016$947,909 M12.38%$331,714 M35.0%9.53%
2017$977,443 M3.12%$344,998 M35.3%4.00%
2018$1,031,360 M5.52%$363,053 M35.2%5.23%

Quarterly financial results

Taiwan Semiconductor Manufacturing posted $289,847.00 M in sales for 2018-Q4, a 11.34% up compared to previous quarter. Reported quarter earnings marked $111,906.00 M with a profit margin of 38.61%. Profit margin stepped up a 4.39% compared to previous quarter when profit margin was 34.21%. When comparing turnover to same quarter last year, Taiwan Semiconductor Manufacturing sales marked a good increase and gained a 4.41%. Looking back to recent quarterly results, Taiwan Semiconductor Manufacturing posted 2 negative quarters in a row.
TSM quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$233,920 M-$87,630 M37.5%-
2017-Q2$213,810 M-8.60%$66,270 M31.0%-24.38%
2017-Q3$8,313 M-96.11%$2,965 M35.7%-95.53%
2017-Q4$277,603 M3,239.29%$101,173 M36.4%3,311.91%
2018-Q1$247,962 M-10.68%$89,785 M36.2%-11.26%
2018-Q2$233,220 M-5.95%$72,291 M31.0%-19.48%
2018-Q3$260,334 M11.63%$89,072 M34.2%23.21%
2018-Q4$289,847 M11.34%$111,906 M38.6%25.64%

Taiwan Semiconductor Manufacturing ownership

When you are planning to buy shares of a company, it's always worth to overview its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Taiwan Semiconductor Manufacturing, 0.04% of all outstanding shares are owned by its staff.

In case of Taiwan Semiconductor Manufacturing stock, 19.92% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for TSM stock account 0.00%, no big difference from last month.

For a better understanding, the next table shows ownership data compared to other related companies:

TSMADIAMATINTCNVDA
Market cap$255.8 B$40.4 B$47.7 B$227.5 B$116.0 B
Total shares5,190.0 M369.4 M923.8 M4,430.0 M609.0 M
Float shares4,500.0 M367.9 M920.3 M4,430.0 M584.2 M
  - Institutional holdings (%)19.9%92.5%81.5%68.8%72.8%
  - Insider holdings (%)0.0%0.3%0.3%0.1%4.3%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

TSM summary

Friday, October 18th, 2019
Open$49.65
Close$49.28
Day range$49.13 - $50.09
Previous close$49.75
Session gain-0.94%
Average true range$0.99
50d mov avg$44.53
100d mov avg$42.26
200d mov avg$40.31
Daily patternlt06a
Weekly pattern lb02c

Taiwan Semiconductor Manufacturing performance

To measure stock performance is always good to compare with competitors or related stocks. We chose Analog Devices, Applied Materials, Intel, NVIDIA, STMicroelectronics, Tower Semiconductor, Texas Instruments and Xilinx as the bechmarking frame for Taiwan Semiconductor Manufacturing stock.
Stock3m6m12m
TSMTaiwan Semiconduc...13.24%12.87%33.30%
ADIAnalog Devices-4.97%-3.62%35.78%
AMATApplied Materials8.57%18.72%53.81%
INTCIntel2.86%-11.05%19.72%
NVDANVIDIA13.20%2.47%-16.53%
STMSTMicroelectronic...16.37%14.42%34.89%
TSEMTower Semiconduct...35.91%26.15%14.66%
TXNTexas Instruments11.06%13.49%35.59%
XLNXXilinx-22.85%-29.62%29.13%

Taiwan Semiconductor Manufacturing competitors

We chose a few stocks to conform a list of Taiwan Semiconductor Manufacturing competitors to check if you are interested in investing in TSM:

Latest TSM stock news