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Taiwan Semiconductor Manufacturing Company Limited (TSM) Stock Grade

TSM · Technology

A+
Grade updated: August 16, 2026
Computed by the GradeMyInvestments scoring model from revenue growth, profitability, balance-sheet strength, and analyst targets.
Market Cap
$2.21T
P/E Ratio
28.5
Revenue Growth (YoY)
+33.0%
Net Margin
45.1%
Return on Equity
32.4%
Dividend Yield
1.1%

About Taiwan Semiconductor Manufacturing Company Limited's fundamentals

Taiwan Semiconductor Manufacturing Company is the world's largest contract chipmaker with a $2.21 trillion market capitalization, generating revenue growth of 33.0% year-over-year alongside an exceptional net margin of 45.1%, indicating strong pricing power and operational efficiency. The company demonstrates robust profitability metrics with a return on equity of 32.4%, showing effective use of shareholder capital, though its P/E ratio of 28.5 reflects elevated valuation relative to current earnings. With a dividend yield of 1.1%, the company returns modest cash to shareholders while retaining most earnings for reinvestment and growth.

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