Taiwan Semiconductor MFG. (TSM) Buy, Sell or…

Taiwan Semiconductor MFG. (TSM)

424.37

+5.86 (1.40%)

as of Oct 26, 2026, 8:00:00 pm Market Closed.

413 watching

BUY

Interesting industry, with political aspects. Chips are vital. US is ahead of China in its ability to manufacture chips. TSM is one of the great foundry companies. Huge capex in the next few years. You can also look at NVDA (gaming, cloud) and QCOM (5G).

BUY

12-month price target of $134.50. Has been adding to it. Undisputed market leader of semiconductor foundries. Competitors just can't reach its huge economies of sale. Doesn't design, just manufacturers. 20% annual revenue growth. Yield of 1.5%.

TOP PICK

He's watching semis closely due to the current shortage and the US government investing seriously in this business. The industry is demand-driven. TSM says it can increase prices of its chips--interesting. Margins should improve as he expects robust growth for years to come. 15% revenue growth expected and this is trading at a low market multiple. TSM is investing $120 billion to building more facilities and compete better against AMD and Intel. (Analysts’ price target is $140.99)

BUY

With the worldwide shortage, likes that there's a big impetus to own semiconductor stocks. QCOM is not his top choice. He'd rather look at TSM or NVDA, with higher growth profiles.

BUY

Semis are the hottest business in the world, given the chip shortage that he expects to continue. TSM has a lot of orders.

BUY

Fantastic business. Semis are needed in every single device. TSM has all the right products and relationships. His only concern with semis is with companies that rely on others for their business. Homerun returns. Big tailwind of demand.

SELL

World class operation. He sold based on extreme valuation. When something moves 35% in one year, you have to ask yourself if you should be there. On the positive side, there is a chip shortage. Samsung has a better suite of products given the current environment, with a far more accessible valuation.

PAST TOP PICK

(A Top Pick Feb 14/20, Up 128%) Kings of the foundries in the semiconductor ecosystem. Market share of 50.5%. Position is being solidified. Big capex spend. Need to have it in your tech portfolio.

DON'T BUY

Semis have done very well. Their 20-year free cash flow shows that the stock is cyclical. Now, we're at a high. The time to buy semis would have been 2010-2011 when free cash flow dipped to lows and investors were worried about this industry. That said, one semi that is in the dumps and is very cheap is Intel. Though Intel is struggling now, he would buy this for these reasons.

BUY ON WEAKNESS

It is very expensive, but guidance has been an increase of 5% in revenues. The company continues to leap frog ahead. However, it is quite expensive and the demand is overbought. It is however driven by China. Has owned it before, but no longer does. Would wait for a better entry point. Holds Samsung instead.

BUY

An essential 5G play The most important semi company in the world. They outsource the production of the chip industry. Volume is incredible. They just boosted their capex budget by 50%. They're making a killing from 5G. Stock is up 114% in the past year.

TOP PICK

Its 50% market share is cemented and expanding. Favoured supplier to the free world of leading edge semiconductors. Spending aggressively for manufacturing in US. Quality and performance are best in class. Yield is 1.69%. (Analysts’ price target is $642.87)

COMMENT

The most important semi stock we don't hear from. They report Thursday. If they say that they are doing well, it could move the entire semi group.

HOLD

Likes it a lot. Hard to start a position now, as it's done so well. Long-term, you can continue to own it. Its edge comes from its technological expertise, with smaller nodes. Intel's loss has been TSM's gain.

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PAST TOP PICK

(A Top Pick Jul 28/20, Up 37.8%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with TSM has achieved a move to $106. We are going to be disciplined and recommend taking 50% of the position off and to put in a trailing stop at $86 -- about $10 above our first recommended entry level. This would all but guarantee a minimum return of 25%.

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Taiwan Semiconductor MFG. (TSM)