Taiwan Semiconductor: Buy or Sell? MarketBeat Weighs In
taipei, Sunday, 27 July 2025.
MarketBeat’s latest analysis offers insights into Taiwan Semiconductor Manufacturing (TSM). The analysis helps investors decide whether to buy or sell. The report considers stock price fluctuations, dividend yields, and short interest. TSM, with a market capitalization of $1.27 trillion, closed at $245.54 on July 25, 2025. Earnings are projected to increase by almost 20% in the next year. Is now the time to invest?
Stock Performance and Analyst Ratings
TSM’s stock experienced a rise of $3.95, or 1.63%, to close at $245.54 on July 25, 2025 [1]. However, extended trading saw a slight decrease of $0.29, representing a 0.12% drop, bringing the price to $245.25 [1]. MarketBeat’s analysis indicates a consensus rating of ‘Buy’ for TSM, based on input from four analysts [1]. The average price target for TSM is $258.33, suggesting potential upside from the recent closing price [1].
Financial Health and Growth Prospects
TSMC’s financial metrics offer a mixed view. The company’s price-to-earnings (P/E) ratio stands at 28.00 [1]. This is more than the market average of 27.03, but less than the computer and technology sector average of 34.47 [1]. Earnings per share (EPS) for the most recent quarter was $2.47, exceeding analysts’ estimates by $0.34 [1]. Revenue saw a substantial increase of 44.4% compared to the same quarter last year [1]. Future earnings are projected to grow by 19.89%, from $9.20 to $11.03 per share [1].
Market Position and Manufacturing
Taiwan Semiconductor Manufacturing holds a significant position in the semiconductor industry [7]. It ranks as the world’s largest independent contract manufacturer [7]. TSMC is also the third-largest semiconductor manufacturer globally, behind Intel and Samsung [7]. The company’s advanced manufacturing processes are crucial to its competitive edge and influence on related industries [5]. Its headquarters are located in Hsinchu, Taiwan [7].
Investment Considerations
Investors should consider various factors before investing in TSM. A small percentage, 0.40%, of TSM shares have been sold short, with a short interest ratio of 1.1 [1]. Intel’s recent doubts about its chip-manufacturing business could impact TSMC and ASML [8]. MarketBeat gives Taiwan Semiconductor Manufacturing a higher score than 58% of the companies it evaluates [1]. It also ranks the company 323rd out of 666 stocks in the computer and technology sector [1].