Taiwan Semiconductor Manufacturing Co Ltd

Under the Momentum + EPS strategy, TSM is in a Stage 4 decline within its longer-term uptrend. Price trades below the declining 9-EMA, 21-EMA, and 50-DMA and has pulled back into those EMAs, reinforcing bearish medium-term bias. Short-term conditions confirm execution readiness to sell on rejection at the EMA cluster, while the secular uptrend remains intact but secondary to the near-term downtrend.

• ↑Q1 ’26 sales of $35.9B (+40.6% YoY), full‐year revenue growth >30% expected
• ↑Gross margin 66.2% and ROE 36.8% reflect high operational efficiency
• ↓Negative earnings yield and book‐to‐price score imply ~45% overvaluation risk