TSM

TSM

TSMC

Hybrid Industrial

★ Quality 80/100
Overvalued

Price today

$428.91

This company value is already calculated

We know what it is worth from its audited numbers, and whether it trades above or below that today. Create your free account to see it.

See what it is worth

charlieapp.co

What this business is made of

80qualityReturnsMoatBalance sheetPricing powerReinvestment

The business

Makes the chips that Apple and Nvidia only know how to draw.

TSMC is the foundry: it manufactures on demand the chips others design (Apple, Nvidia, AMD) who never touch a single wafer. It charges per wafer, and the more advanced the process —3, 2 nanometers— the pricier and higher the margin. It's the workshop where the world's silicon is cooked.

Nobody else manufactures profitably below 3 nanometers. That can't be copied with money: it's decades of know-how, tens of billions in fabs, and a scale no rival matches. Samsung and Intel are chasing; TSMC is years ahead.

Revenue history

$75.9B
2022
$69.3B
2023
$90.1B
2024
$115.0B
2025
$140.0B
2026
CAGR 5 años: +17%

From $75.9B to $140.0B in 4 years — nearly 1.8x its size. Selling more and more is the base of everything else.

Where each $100 of sales goes

Revenue $117.2B · FY2025

Cost of sales$44.5B · 38%
Operations$11.0B · 9%
Taxes and other$7.7B · 7%
Net profit$54.0B · 46%

Of every $100 in sales, $54 goes to costs and operations; $46 is left as net profit (46% margin).

Catalysts and risks

Volume production of 2nm starting 2025-2026, with capex of $52-56B.

Demand for artificial intelligence chips growing at double digits annually.

New fabs in Arizona and Japan to dilute concentration risk.

⚠️

More than 80% of capacity is in Taiwan, in China's geopolitical crosshairs.

⚠️

Record capex depresses free cash flow today; the normalized value is higher.

⚠️

The semiconductor business is cyclical: demand swings up and down hard.

Charlie's note

Paying 24 times earnings for a business that grows 25% with 35% returns and net cash isn't crazy. What you can't diversify is that almost everything is made on an island China claims; the market pays for AI and prefers not to think about the map.

Analysis · July 2026

Want to follow TSMC?

We do not calculate a value here: TSMC does not generate cash flows you can project, and putting a number on it would be making it up. What you can do is follow it and tell us the price you care about — we will email you when it gets there.

🔔 Email me

Free · no card

Charlie informs, it doesn't advise. No information should be taken as a recommendation to buy or sell.