TSM stock: buy or sell?

TSM stock price: $42.13 -1.06% At close on August 22nd, 2019

Updated on:
August 22nd, 2019

5

After climbing for 4 sessions, Thursday Taiwan Semiconductor Manufacturing decreased a bad -1.06%, closing at $42.13.

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. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with Taiwan Semiconductor Manufacturing stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Taiwan Semiconductor Manufacturing stock a buy?

Financial institutions and banks publish stock ratings everyday. At Stocks2.com, we detected 3 ratings published for TSM stock in the last month.

Is TSM a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-7-19CLSAUnderperformBuy
2019-5-7Goldman Sachs Groupn/aBuy
2019-1-17CLSAOutperformUnderperform

TSM stock analysis

Daily outlook

After climbing for 4 days, Thursday Taiwan Semiconductor Manufacturing decreased a bad -1.06%, closing at $42.13.

After climbing for 4 days, Thursday Taiwan Semiconductor Manufacturing decreased a bad -1.06%, closing at $42.13. On Jul/22, TSM hit new all time highs, pushing higher previous ATH of $44.20 recorded on April. New ATHs are usual entry points for many trading setups as there aren't higher resistences. Since price and SMA200d lines crossed up on June, TSM climbed $3.97 (10.40%). On May, SMA100d and SMA200d crossed up triggering a rise of 14.27%. From a daily perspective, TSM is in a short term uptrend after plotting its last bottom ($40.25, on Aug/14) higher than the previous bottom, and its last top ($42.64, yesterday) 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 $42.64 or down under $40.25.

TSM stock chart (daily)

Weekly outlook

Shares of Taiwan Semiconductor Manufacturing closed this week at $42.13 and inched a good 1.42%. By mid July TSM boosted an outstanding 5.93% in just one week.

Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $44.88 resistance. Not so far away is the last price record Taiwan Semiconductor Manufacturing marked late July. Since price and SMA40w lines crossed up by mid June, TSM climbed $5.48 (14.95%). Since early May when SMA20w and SMA40w crossed up, TSM price slipped $-1.17 per share (-2.70%).

TSM stock chart (weekly)

TSM stock price history

TSM IPO was on October 9th, 1997 at $3.27 per share1. Since then, TSM stock surged a 1,188.40%, with an average of 56.60% per year. If you had invested $1,000 in TSM stock in 1997, it would worth $11,884.00 today.

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

TSM stock historical price chart

TSM stock reached all-time highs on Jul 22nd with a price of $44.88.

TSM stock price target is $50.00

Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. Currently, only 1 price forecast for Taiwan Semiconductor Manufacturing stock was posted in the last month:
TSM stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-5-7Goldman Sachs GroupInitiatesn/a$50.00-
(in average)$0.00$50.000.0%

Financials and fundamental analysis

Earnings date and Earnings per Share

On January, Taiwan Semiconductor Manufacturing presented its financial report, close to analysts' consensus and published a $0.63 Earnings per Share. As soon as we get its actual EPS from the earnings report, we will update this review.
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

In 2018, Taiwan Semiconductor Manufacturing annual sales jumped a good 5.52% to $1,031,360.00 million dollars from $977,443.00 marked in 2017. When comparing 2018 vs 2017, on the other hand, profit margin (that is, the net income divided by revenues) stayed stable a -0.09% to 35.20%.

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 reported $289,847.00 million in sales for 2018-Q4, a 11.34% improvement compared to previous quarter. Reported quarter income marked $111,906.00 million 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 sales to same quarter last year, Taiwan Semiconductor Manufacturing sales marked a fine gain and raised a 4.41%. Looking back to recent quarterly results, Taiwan Semiconductor Manufacturing posted 2 positive 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 invest in a stock, it's worth to check 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.

The following table compares ownership indicators for other stocks related to Taiwan Semiconductor Manufacturing:

TSMADIAMATINTCNVDA
Market cap$218.7 B$40.2 B$43.8 B$210.5 B$104.3 B
Total shares5,190.0 M369.8 M936.1 M4,500.0 M609.0 M
Float shares4,500.0 M368.3 M926.0 M4,430.0 M584.5 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

Thursday, August 22nd, 2019
Open$42.39
Close$42.13
Day range$41.72 - $42.49
Previous close$42.58
Session gain-1.06%
Average true range$0.99
50d mov avg$41.06
100d mov avg$40.68
200d mov avg$38.63
Daily patternlt06a
Weekly pattern lb02a

Taiwan Semiconductor Manufacturing performance

To better understand Taiwan Semiconductor Manufacturing performance you must becnhmark its gains with other related stocks in same sector or industry. For Taiwan Semiconductor Manufacturing, the benchmark is made against Analog Devices, Applied Materials, Intel, NVIDIA, STMicroelectronics, Tower Semiconductor, Texas Instruments and Xilinx.
Stock3m6m12m
TSMTaiwan Semiconduc...13.86%10.43%5.48%
ADIAnalog Devices10.94%3.63%12.24%
AMATApplied Materials18.56%19.37%11.34%
INTCIntel5.67%-9.73%0.69%
NVDANVIDIA18.11%7.80%-36.86%
STMSTMicroelectronic...19.76%8.93%-8.69%
TSEMTower Semiconduct...26.21%4.49%-6.55%
TXNTexas Instruments19.89%18.16%13.39%
XLNXXilinx5.19%-12.99%45.83%

Taiwan Semiconductor Manufacturing competitors

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

Latest TSM stock news