One of the world’s best known companies, Taiwan Semiconductor Manufacturing (NYSE: TSM) manufactures integrated circuits and wafer semiconductor chips that are the backbone of virtually all of the world’s technologies. Given the company’s importance to national security and its geographic proximity to China, the recent news about the government of Taiwan and TSM refusing to transfer 40% of its manufacturing capacity to the United States in response to a Trump Administration request has certainly received a lot of attention.
The market’s reaction based on the increase in the stock’s price seems to have ignored the political fallout, preferring to concentrate on the company’s seemingly unstoppable growth. This is borne out by MarketGrader’s Sentiment Score of 9.3 (out of 10), designed to help investors gauge short-term demand for a company’s shares. It’s composed of four indicators, including Price Momentum, Price Trend, Relative Strength, and Earnings Guidance. Our Sentiment rating is most useful when combined with our robust fundamental analysis. Our current overall grade for the company, based on our GARP + Quality analysis, is 80.7 (out of 100), making it the highest ranked mega cap technology company in the world. It has a market cap of $1.94 trillion. Figure 1 shows how strong the company’s fundamentals look in MarketGrader’s ‘Fundamental Quadrant.’
Figure 1. MarketGrader’s Fundamental Analysis of TSM as of February 11, 2026.
TSM earns ‘A+’ grades in three of our four Sentiment indicators, with the lone exception being our Price Trend indicator, where it earns a solid ‘B+.’ It is worth noting that according to our Earnings Guidance indicator, consensus estimates for the company’s 2026 FY earnings have climbed almost 14% in the last three months. This suggests that analysts following the company continue to underestimate the strength in its earnings growth, needing to revise their estimates regularly to catch up with the company’s growth. Figure 2 shows a summary of the stock’s Sentiment Analysis.
Figure 2. MarketGrader’s Sentiment Analysis of TSM as of February 11, 2026.
TSM is also included in some of our best lists of ideas, such as Increasing Dividends, Cash Kings, Best Momentum Stocks, Improving Earnings Guidance, and American Depository Receipts.
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