TSMC Stock Drops 19% From Peak: Is It Time to Buy More?

Yahoo Finance · 2026-11-05

Taiwan Semiconductor Manufacturing shares have climbed thirty percent over the past year, yet they currently trade nineteen percent below their October peak following broader semiconductor selloffs triggered by Lam Research and Intel. Despite the market pullback, TSMC’s operational strength remains remarkable, highlighted by a record-breaking third quarter with forty-six point seven billion dollars in revenue. Wall Street analysts project that earnings per share will more than double between twenty-twenty-five and twenty-twenty-seven. Furthermore, the stock trades at a forward price-to-earnings ratio below its five-year average, creating a compelling entry point ahead of the upcoming mid-January financial report.

AI 시장 분석

TSMC proved its solid performance by recording a record-high revenue of $46.7 billion in the third quarter and a gross margin of 66.4%. Although its stock price fell 19% from its peak in the wake of sluggishness from Lam Research and Intel, forecasts continue that EPS in 2027 will more than double compared to 2025. Investors can use the current stock price correction, which is below the 5-year average forward P/E, as a buying opportunity.

상승 영향

Semiconductors — TSMC shows outstanding fundamentals with Q3 revenue of $46.7 billion and expected 44% growth in 2026, and profitability is projected to be strengthened by potential packaging price hikes.

하락 영향

Semiconductors — Selling pressure has flowed into chip stocks overall due to Intel's sluggish outlook and Lam Research's earnings aftermath, and there is a risk that future large-scale capital expenditures may burden future earnings.

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