BN · rank #15 · 2026-07-22
TSM
NYSE · $2.20T (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.23 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +31.2% |
| Forward net margin Consensus forward net margin. | +47.9% |
| Net margin TTM Trailing twelve month net margin. | +49.9% |
| Margin expansion Forward minus trailing net margin (percentage points). | -2.0% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 1.02 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 0.82× |
| Analyst upside Spread between the consensus 12m target and the current price. | +23.1% |
| Last EPS surprise Most recent reported EPS versus consensus. | +11% |
| Market cap (USD) | $2.20T |
The AI research card
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Summary
TSMC is the world's dominant advanced-node contract foundry, manufacturing the majority of leading-edge AI, HPC, and smartphone chips for global fabless customers, with ~77% of wafer revenue from 7nm-and-below nodes.
Rationale
The bottleneck-solver thesis is directly reinforced by TSMC's sole-source status in CoWoS advanced packaging and leading-edge logic, with Q2 2026 revenue up ~34% YoY, a 77% net income surge, Q3 guidance above consensus, and a forward PEG of ~1.02 suggesting the market is not yet fully pricing the AI-driven earnings inflection.
Material risks
- 1Major hyperscaler or fabless customers (e.g., Apple, NVIDIA, AMD) accelerating in-house advanced packaging or shifting CoWoS orders to Samsung/Intel Foundry would directly erode TSMC's sole-source bottleneck position and compress the pricing power underpinning the thesis.
- 2U.S. or Taiwan geopolitical escalation triggering export controls on advanced AI chip shipments or disrupting TSMC's Taiwan fab operations could impair the order visibility and capital flow that justify the structural moat premium.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.