BN · rank #5 · 2026-10-20
TSM
NYSE · $2.18T (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.48 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +37.5% |
| Forward net margin Consensus forward net margin. | +49.7% |
| Net margin TTM Trailing twelve month net margin. | +51.1% |
| Margin expansion Forward minus trailing net margin (percentage points). | -1.5% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 0.86 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 0.64× |
| Analyst upside Spread between the consensus 12m target and the current price. | +39.1% |
| Last EPS surprise Most recent reported EPS versus consensus. | +3% |
| Market cap (USD) | $2.18T |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Taiwan Semiconductor Manufacturing (TSMC) is the dominant global semiconductor foundry, fabricating leading-edge nodes (2nm, 3nm, 7nm) and advanced packaging for primary AI GPU and accelerator designers.
Rationale
The quant signal correctly identifies TSMC as a critical bottleneck solver in advanced AI chip supply, supported by 37.5% forward revenue growth, 49.7% forward net margin, and customer demand exceeding available capacity.
Material risks
- 1Capacity bottlenecks and gross margin dilution from high-cost overseas fab expansions could drive key customers to diversify leading-edge orders toward Intel or Samsung.
- 2Geopolitical volatility surrounding Taiwan and tightening U.S.-China export controls could restrict shipments and disrupt TSMC's centralized production infrastructure.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.