Taiwan Semiconductor Just Reclaimed a $2 Trillion Market Cap. It Still Trades at About 20 Times Forward Earnings.

Taiwan Semiconductor Manufacturing (TSMC) surpassed a $2.1 trillion market cap after a 7.6% jump on July 30, 2026. Despite this milestone valuation, the stock trades at approximately 20 times forward earnings—an average multiple for large companies. The company's Q2 results showed exceptional performance with 34% YoY revenue growth to $40.2 billion and 77% net income growth. The analyst argues this represents an attractive valuation for an extraordinary business, particularly given strong guidance for Q3 and early-stage 2-nanometer technology ramp-up.