TSM
Taiwan Semiconductor Manufacturing Company Technology - Semiconductors Investor Relations →
Taiwan Semiconductor Manufacturing Company (TSM) closed at $462.12 as of 2026-06-19, trading 163.0% above its 200-week moving average of $175.70. The stock moved further from the line this week, up from 143.4% last week. With a 14-week RSI of 85, TSM is in overbought territory.
Trading volume is running at 1.1x of its 14-week average, which is in the normal range. The balance between buying and selling volume (0.87 ratio) is neutral — neither side is clearly dominating.
Over the past 1449 weeks of data, TSM has crossed below its 200-week moving average 18 times. On average, these episodes lasted 13 weeks. Historically, investors who bought TSM at the start of these episodes saw an average one-year return of +71.0%.
With a market cap of $2.4 trillion, TSM is a mega-cap stock. The company generates a free cash flow yield of 30.0%, which is notably high. Return on equity stands at 36.2%, indicating strong profitability. The stock trades at 70.7x book value.
TSM passes our Buffett quality screen: high return on equity, low debt, and positive free cash flow.
Over the past 27.8 years, a hypothetical investment of $100 in TSM would have grown to $29441, compared to $1192 for the S&P 500. That represents an annualized return of 22.7% vs 9.3% for the index — confirming TSM as a market-beating investment and the kind of quality company where buying during 200-week moving average touches has historically been rewarded.
Free cash flow has been growing at a 24% compound annual rate, with 4 consecutive years of positive cash generation.
Business Health
Annual financials — how the underlying business has performed over the past several years.
Cash Flow Free cash flow & net income ($M)
Revenue Annual revenue ($M) — business growth proxy
Total Debt Balance sheet debt ($M)
ROIC Return on invested capital (%)
FCF Yield Free cash flow / market cap (%) — Yartseva signal
Gross Margin Pricing power & competitive moat (%)
Shares Outstanding Buybacks vs dilution (millions)
Growth of $100: TSM vs S&P 500
Monthly data normalized to $100 at start. Vertical dashed lines mark 200-week MA touches.
What Happens After TSM Crosses Below the Line?
Across 18 historical episodes, buying TSM when it crossed below its 200-week moving average produced an average return of +72.9% after 12 months (median +29.0%), compared to +9.7% for the S&P 500 over the same periods. 83% of those episodes were profitable after one year. After 24 months, the average return was +76.3% vs +20.1% for the index.
Each line shows $100 invested at the moment TSM crossed below its 200-week MA. Bold blue = stock average. Gray dashed = S&P 500 average over same periods.
Bean Score Experimental
The Bean Score measures how far a stock's free cash flow yield has deviated from its own quarterly baseline, normalized by the stock's historical behavior. Between earnings dates, FCF is constant — so the score is purely a function of stock price. The levels below show at what prices TSM would reach each dislocation threshold.
Dislocation Price Levels
Prices where TSM's Bean Score would hit each σ threshold. Valid until next earnings report: 2026-07-16.
| Level | σ | Price | Signal |
|---|---|---|---|
| Deep Value | +2σ | $334.91 | Unusually cheap — potential buy zone |
| Value | +1σ | $354.88 | Cheap vs. own history |
| Fair Value | +0σ | $377.37 | Historical mean behavior |
| Expensive | -1σ | $402.91 | Expensive vs. own history |
| Deep Expensive | -2σ | $432.15 | Unusually expensive — potential trim zone |
Quarterly FCF & Yield Trailing twelve-month free cash flow and yield at each quarter end
Signal Accuracy Collecting Data
The Bean Score system is accumulating weekly data to validate signal accuracy. After 13+ weeks of history, this section will display win rates and average returns for each σ threshold crossing — answering the question: "When this score says cheap or expensive, does the price subsequently move in the expected direction?"
Theoretical framework — not backtested or forward-tested. The Bean Score uses trailing twelve-month free cash flow yield as a dislocation identifier. It measures whether the market has pushed a stock's yield unusually far from its own baseline behavior. These levels are reference points for identifying potential swing trade opportunities, not buy/sell signals. FCF values update quarterly with earnings; between reports, all movement is price-driven.
Dislocation Scores Experimental
Each score measures deviation from TSM's own historical baseline — the same idea as the Bean Score, applied to different fundamentals. Positive means cheaper or more dislocated than this stock's norm. Scores marked σ are normalized by the stock's own variability; pp values are simple deltas from its recent baseline.
Theoretical framework — not backtested. These scores describe how unusual today's readings are for this specific company. They are starting points for research, not buy or sell signals. Annual-statement scores (buyback, accruals, FCF vs history) rest on only ~4 yearly data points and are deltas, not sigmas.
Historical Touches
TSM has crossed below its 200-week MA 18 times with an average 1-year return of +71.0% after recovery.
| Crossed Below | Recovered | Weeks | Max Depth | 1-Year Return | Return Since Touch |
|---|---|---|---|---|---|
| Sep 1998 | Nov 1998 | 8 | 29.1% | +229.9% | +25200.8% |
| Dec 1998 | Dec 1998 | 1 | 3.9% | +239.8% | +21683.6% |
| Dec 1998 | Jan 1999 | 1 | 2.4% | +290.1% | +21299.8% |
| Nov 2000 | Jan 2001 | 5 | 15.0% | +26.1% | +10802.7% |
| Feb 2001 | Apr 2001 | 7 | 13.3% | +12.4% | +9470.3% |
| May 2001 | Jun 2001 | 1 | 1.6% | +16.7% | +9595.4% |
| Jun 2001 | Jul 2001 | 5 | 5.1% | -0.9% | +9943.8% |
| Aug 2001 | Nov 2001 | 12 | 36.7% | -19.8% | +11378.6% |
| Jun 2002 | Jan 2005 | 139 | 62.4% | -18.4% | +9498.9% |
| Feb 2005 | May 2005 | 11 | 8.9% | +21.0% | +11110.4% |
| Sep 2005 | Sep 2005 | 1 | 1.9% | +28.2% | +11486.7% |
| Oct 2005 | Oct 2005 | 3 | 3.2% | +39.8% | +11559.8% |
| Sep 2008 | Mar 2009 | 25 | 26.0% | +29.1% | +9145.3% |
| Sep 2022 | Nov 2022 | 8 | 20.8% | +18.3% | +562.6% |
| Dec 2022 | Jan 2023 | 4 | 6.6% | +37.1% | +541.5% |
| May 2023 | May 2023 | 1 | 1.0% | +82.2% | +480.4% |
| Sep 2023 | Oct 2023 | 2 | 3.3% | +106.5% | +460.1% |
| Oct 2023 | Oct 2023 | 1 | 3.9% | +140.3% | +457.8% |
| Average | 13 | — | +71.0% | — |
Frequently Asked Questions
Is TSM below its 200-week moving average?
No. Taiwan Semiconductor Manufacturing Company (TSM) is currently 163.0% above its 200-week moving average of $175.70. It would need to fall to $175.70 to cross below the line.
What is TSM's 200-week moving average price?
Taiwan Semiconductor Manufacturing Company's 200-week moving average is $175.70 as of 2026-06-19. This is the average weekly closing price over roughly the last 4 years, and it acts as a long-term trend line. When a stock drops below this level, it can signal that the price has fallen far enough from the long-term trend to attract value-oriented investors.
What happens when TSM drops below its 200-week moving average?
TSM has crossed below its 200-week moving average 18 times in our data. On average, buying at that moment produced a one-year return of +71.0%. These dips have historically been decent entry points. These episodes lasted 13 weeks on average.
Is TSM a good value right now?
Here's what our data says about TSM as of 2026-06-19: The stock is above its 200-week moving average, so it doesn't currently meet our primary signal. The 14-week RSI is 85 (overbought). Free cash flow yield is 30.0%. Return on equity is 36.2%. Price-to-book is 70.7x. This is not a buy or sell recommendation — always do your own research.
How does TSM compare to the S&P 500?
Over the past 27.8 years, $100 invested in TSM would have grown to $29441, compared to $1192 for the S&P 500. That's 22.7% annualized vs 9.3% for the index. TSM has outperformed the broader market over this period.
Not financial advice. This is an educational tool. Past performance does not guarantee future results. Do your own research before making investment decisions.
Data as of week of 2026-06-19