The read · TSM

TSM: what today's price assumes, in the company's own numbers

At $434.67, the model at each driver's own trend prices TSM at $51.92. The read below shows which reported driver, if any, closes that gap alone.

What the price needs

For today's price to be right, every growth line has to run about 40 points a year above its own trend. No single line can reach the price on its own.

Line by line · what the price needs from each driver
Moves priceLineLast printTrendPrice needsYou
Revenueyear one+15%
Gross marginlevel · 7 prints56.1%Dec 2024unobserved
Operating expenses as % of net revenuelevelunobserved

No single line can reach today's price on its own; every line is held at its trend.

The path · year by year
The frontier · the two lines that move the price most

Every cell is the model's price with Revenue at that level, the rest at trend. One row, because no second line has a measured sensitivity. The blue cells are where today's price ($435) sits; the other filled cells are model-price positions, not good/bad calls.

Across: Revenue
-0%
+7%
+15%
+19%
+22%
+26%
+30%
$34
$44
$52
$44
$46
$61
$66

● the last print · ○ the trend · ◆ you. each cell is the model price with Revenue at that level and every other driver at trend; axes include the price-needs point, trend and last print when available; a growth level is the first-year rate fading like trend, a ratio holds; cells within ±2% of today's price are the line

In dollars, in the world
revenue, FY to Dec 2024$88.3 bn
At trend, year 5$149.5 bn

At trend, revenue is 1.7× today's in 5 years. The level is from the income statement.

What its counterparties have stated, with a figure
AMATsupplierCapital expenditures were $707 million in Q3 FY2026 compared to $584 million in Q3 FY2025.press_release · 2026-08-13 · source ↗
AMATsupplierCapital expenditures in Q2 2026 were $635 million, compared to $510 million in Q2 2025.press_release · 2026-05-14 · source ↗

revenue in FY2024-12-31 compounded along the bar's path and along the trend's path for 5 years; the figures beside it are what named counterparties stated, with sources; Dawo does not divide the two

Against the bar
Where the gap could sit

Today's price sits 737% above the model at trend. Any one of these levers closes that gap alone; which of them the market is using is not observable from the price.

LeverNeedsReferenceSitsIn words
The discount rate9.5%not observableout of range: even 0.03 prices the model at 139.61 against today's 434.67; the model's rate is 9.5% (risk-free 4.9%, equity premium 4.0%, beta 1.14)
The terminal multiple27.0×not observableout of range: even 30 prices the model at 55.85 against today's 434.67; the model's multiple is 27.0x for Technology

each lever solved alone with every other input at the model's own value; positional words, no verdict

▸ Driver by driver · the numbers

For each driver: the last figure the company printed, with its period; the driver's own trend; the rate today's price needs it to run at, with the others at trend; and where the evidence in filings and calls leans.

DriverLast printedTrendPrice needsEvidence
Revenue+15.0%can't reach it alone↑ leans higher · 1 for, 0 against
Gross margin56.1%
2024-12-31
can't reach it aloneno claims yet
Operating expenses as % of net revenuecan't reach it aloneno claims yet

No single driver can reach today's price on its own; the common delta above is the read.

What the filings and calls say

Revenue
  • · revenue direction: raised. We maintain strong confidence for our full year 2026 revenue to now grow by above 30% in U.S. dollar terms.transcript · tier A
Gross margin
  • · margin direction: maintained. We maintain strong confidence for our full year 2026 revenue to now grow by above 30% in U.S. dollar terms.transcript · tier A

What would change the picture

Next Revenue print
  • Next reported Revenue print clears the read's bar — no print on file yet

How this read is made

The drivers are the lines TSM itself reports, in a general segments structure, reviewed by public_showcase_integrity_gate. Every figure is a dated print from a filing or a release; no model writes a number. “Price needs” is the first-year rate on a path that fades to the model's long-run rate, solved so the model price equals today's, with the other drivers at their own trend. The evidence is the filings' and calls' own sentences, sorted for direction only. The method is on the methodology page; every read is sealed on the day and scored by the next print on the ledger.

Research, not advice. Every figure is a dated print from a filing or release you can open; nothing here is a verdict to adopt, and the view on any name is yours to write.

See it live — no signupUse this from Claude or ChatGPT →