Taiwan Semiconductor Just Reclaimed a $2 Trillion Market Cap.
It Still Trades at About 20 Times Forward Earnings
Taiwan Semiconductor Manufacturing (NYSE: TSM) got back above one of the market’s biggest round numbers on Thursday, July 30. A 7.6% jump in the shares carried the chip foundry giant’s market cap through the $2 trillion mark again, to about $2.1 trillion, where it stood at Friday’s close. The company had surrendered that level during the stock’s slide from its 52-week high of $479 — a drop that, at its worst, erased roughly a fifth of the company’s value even as its results kept improving.
As recently as the middle of last week, the market cap sat around $1.9 trillion. Milestone valuations usually come attached to milestone-sized expectations. This one doesn’t.