TSM is the leading contract semiconductor manufacturer in the world, taking other companies’ chip designs and turning them into finished products. The company’s second-quarter fiscal 2026 report showed $40.2 billion in quarterly revenue (a 36% year-over-year gain), a gross margin of 67.7% (an improvement of 150 basis points), and increased revenue full-year guidance to over 40% higher than the prior year.
No wonder TSM shares are up 51% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.
Institutions Love TSMC
Institutional volumes reveal plenty. In the last year, TSM has enjoyed strong investor demand, which we believe to be institutional support.
Each green bar signals unusually large volumes in TSM shares. They reflect our proprietary inflow signal, pushing the stock higher:
Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with TSMC.
TSMC Fundamental Analysis
Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, TSM has had strong sales and earnings growth:
- 3-year sales growth rate (+19%)
- 3-year EPS growth rate (+21.9%)
Source: FactSet
Also, EPS is estimated to ramp higher this year by +31.8%.
Now it makes sense why the stock has been generating Big Money interest. TSM has a track record of strong financial performance.
Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term.
TSMC recently became a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
The stock has drawn 14 Big Money outlier inflow signals since 1999, rising 4,341% since the first one. The blue bars below show when TSM was an institutional target in the last three years…Big Money keeps buying:
Tracking unusual volumes reveals the power of money flows.
This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.
TSMC Price Prediction
The TSM action isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no position in TSM at the time of publication.
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