Question 1

Is TSM a buy according to UQS?

Accepted Answer

UQS rates TSM as Very Good at 82.7/100, driven primarily by Risk (96.4) and Valuation (91.9). The score reflects a business with a net cash balance sheet, operating margin of 50.8% versus a sector median of 2.4%, and a dominant moat anchored by Scale & Ecosystem (20/20). The lowest pillar is Quality (73.0), reflecting modest FCF yield of 1.9%. UQS does not issue buy or sell recommendations — the score is a fundamental quality rating.

Question 2

What is TSM's PEG ratio and what does it mean?

Accepted Answer

TSM carries a PEG ratio of 3.39, compared to a sector median of 1.27. A PEG above 2 generally indicates the market is pricing in significant future growth relative to current earnings. For TSM, this premium reflects consensus expectations for forward EPS growth of 80.9%. While the elevated PEG signals the stock is not cheap on a growth-adjusted basis, it must be read alongside the quality of the underlying earnings — operating margin of 50.8% and ROIC of 24.6% versus the sector median of 0.9%.

Question 3

Why might TSM's UQS Score change?

Accepted Answer

The UQS Score is recalculated daily using trailing twelve-month financial data and forward analyst consensus estimates. Changes to TSM's score could stem from shifts in reported revenue or earnings (affecting Quality and Growth pillars), revisions to forward EPS estimates (affecting Valuation and Growth), changes in balance sheet composition (affecting Risk), or movement in market-implied multiples like EV/EBITDA and PEG. A score change of five or more points triggers a page regeneration, ensuring the published rating reflects current fundamentals.

Question 4

How does TSM compare to AVGO and MSFT?

Accepted Answer

TSM operates as a pure-play foundry — a fundamentally different model from Broadcom (AVGO), a fabless semiconductor and infrastructure software company, and Microsoft (MSFT), a diversified software and cloud platform. TSM's operating margin of 50.8% and ROIC of 24.6% reflect manufacturing-scale advantages rather than software economics. AVGO and MSFT both carry higher software-driven recurring revenue characteristics. Comparing UQS pillar patterns across these three is most meaningful on the Moat and Risk dimensions, where TSM's Scale & Ecosystem (20/20) and net cash balance sheet are distinctive.

Question 5

What drives TSM's Moat score?

Accepted Answer

Scale & Ecosystem (20/20) and Cost Advantage (19/20) are the two dominant moat sub-dimensions. Scale & Ecosystem reflects TSM's position as the sole manufacturer capable of high-volume production at leading-edge nodes — a position that took decades and hundreds of billions in capital to build. Cost Advantage (19/20) captures the yield and throughput efficiencies that make TSM's per-wafer economics unmatched. Switching Costs (18/20) and Intangibles/IP (17/20) further reinforce the moat, as chip designers build products tightly coupled to TSM's process design kits.

Date	UQS	Quality	Moat	Growth	Risk	Value	Change
May 23, 2026	82.5	73.2	82.0	78.3	95.2	91.8	0.0
May 22, 2026	82.5	73.2	82.0	78.3	95.2	92.0	-0.2
May 21, 2026	82.7	73.3	82.0	78.3	95.2	92.6	+0.2
May 16, 2026	82.5	73.2	82.0	78.3	95.2	92.0	0.0
May 14, 2026	82.5	73.2	82.0	78.3	95.2	91.7	0.0
May 13, 2026	82.5	73.3	82.0	78.3	95.2	91.9	-0.2
May 11, 2026	82.7	73.3	82.0	78.3	95.2	92.8	+0.1
Apr 20, 2026	82.6	73.0	82.0	78.3	96.4	91.3	+0.2
Apr 19, 2026	82.4	72.8	82.0	78.3	95.2	91.8	-0.2
Apr 18, 2026	82.6	73.0	82.0	78.3	96.4	91.3	-1.3

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