Tokyo Electron Ltd. (TELWY) Stock Price & How to Invest
Last updated October 2026
Short answer
TELWY is the US over-the-counter ADR of Tokyo Electron, Japan's largest semiconductor equipment maker and the near-monopoly supplier of the coater/developers that sit beside every lithography scanner. Owning it is a bet on chipmakers' capital spending, now driven by AI. Sales hit a record ~¥732 billion in the April to June 2026 quarter, up ~33%, while the stock trades at roughly 40 times trailing earnings.
TELWY stock price
As of 2026-10-16, Tokyo Electron Ltd. (TELWY) last closed at $32.05, up 57.5% over the past year. Over the past 52 weeks it has traded between $19.38 and $49.56.
Prices are daily closing prices from Yahoo Finance and may be delayed. For the live quote, check your broker or Tokyo Electron Ltd.'s investor relations page. Walnut is informational, not investment advice.
What does Tokyo Electron Ltd. (TELWY) do?
Tokyo Electron Limited (TEL), founded in 1963 and based in Tokyo, designs and builds the machines chipmakers use to manufacture semiconductors. Its signature franchise is coater/developers, the track systems that coat wafers with photoresist and develop the pattern after a lithography scanner exposes it, where it holds the large majority of the global market, including nearly all tracks paired with ASML's EUV scanners. TEL also sells etch, deposition, cleaning, wafer bonding and wafer prober (test) systems, plus a field-solutions business that services and upgrades a large installed base. Revenue comes mostly from one-time equipment sales to the largest logic, foundry and memory makers (TSMC, Samsung, SK hynix, Intel, Micron) and to Chinese chipmakers, with services and parts adding steadier, recurring income.
After a flat year, the business has accelerated. Fiscal 2026 (year ended March 2026) brought record net sales of about ¥2,443.5 billion, up only ~0.5%, with operating income of roughly ¥625 billion as parts, labor and R&D costs pressured margins. The April to June 2026 quarter then set records: sales of ~¥732 billion, up ~33% from ~¥550 billion a year earlier, operating income of ~¥211 billion (up ~46%) and an operating margin near 28.9%. Management raised first-half fiscal 2027 guidance to about ¥1.62 trillion of sales and ¥458 billion of operating income, and now guides only six months at a time. The board also approved a ¥150 billion buyback through March 2027 and a 1-for-5 stock split effective October 1, 2026, and the ADR changed symbol from TOELY to TELWY on September 17, 2026.
The investment debate is about how long the AI-driven upcycle lasts. Bulls point to rising equipment intensity for leading-edge logic, high-bandwidth memory and advanced packaging, plus TEL's entrenched track position. Bears point to a valuation of roughly 40 times trailing earnings (about 28 times forward, per stockanalysis.com), China's large share of sales, export controls, a Taiwan trade-secrets case involving a TEL subsidiary and TSMC, and the sharp swings that have followed every past equipment boom. The ADR is also down about a third from its 52-week high after a July 2026 tech selloff.
What's driving Tokyo Electron Ltd. (TELWY)?
1. AI-driven chip capital spending
AI servers need leading-edge logic chips, high-bandwidth memory (HBM) and large amounts of DRAM, and each of those requires more process steps and more equipment per wafer than older chips. That demand is the main reason TEL's April to June 2026 sales rose ~33% to a record ~¥732 billion and why operating income rose ~46%. Management has said it expects global wafer-fab equipment spending above $150 billion in 2026 and around $190 billion in 2027, and analysts surveyed by Yahoo Finance expect fiscal 2027 sales of roughly ¥3.4 trillion, about 50% above fiscal 2026. Whether customers keep spending at that pace through 2027 is the single biggest swing factor for the stock.
2. Coater/developer dominance and etch share gains
TEL supplies the large majority of the world's coater/developers, and nearly every EUV scanner ASML ships is paired with a TEL track. That makes the track business a toll on lithography spending that grows as EUV and high-NA EUV adoption spreads. The bigger opportunity is etch and deposition, markets where Lam Research and Applied Materials lead and where TEL is pushing newer tools, including cryogenic etch for high-layer 3D NAND and conductor etch for advanced logic. Etch and deposition together are a larger addressable market than tracks, so even a few points of share gain would broaden growth beyond the franchise TEL already dominates.
3. Advanced packaging and bonding
AI accelerators stack memory dies and chiplets, which requires wafer bonding, thinning, cleaning and laser processes that were niche markets a few years ago. TEL sells bonding and debonding systems along with the cleaning and etch steps around them, and management has cited packaging and HBM-related tools among the contributors to its recent record quarter. Hybrid bonding for future HBM generations and backside power delivery for leading-edge logic are both new process steps that need new equipment. These categories are smaller than front-end etch or deposition today, but they tie TEL's growth less tightly to traditional node transitions and more to AI chip architecture.
4. Margins, buybacks and the dividend
Operating margin recovered to about 28.9% in the June 2026 quarter, up from roughly 25.6% for fiscal 2026, when costs for parts, materials, labor and R&D rose faster than sales. Management targets higher margins as volume grows and its field-solutions business expands. Capital returns are tied to profits: TEL targets a dividend payout of about 50% of net income, paid ¥628 per pre-split share for fiscal 2026, and has planned a record interim dividend for fiscal 2027. A ¥150 billion buyback runs from June 2026 to March 2027, and the 1-for-5 split effective October 1, 2026 lowered the per-share price without changing the company's value.
What are the risks to Tokyo Electron Ltd. (TELWY)?
Semiconductor equipment is one of the most cyclical corners of the market. Orders fell sharply in 2019 and 2023 when chipmakers paused spending, and a strong cycle can turn quickly if AI capex slows or memory prices drop. China has accounted for roughly a third or more of TEL's sales in recent years, so tighter US, Japanese or Dutch export controls could cut demand, and earlier reports of new restrictions have triggered single-day drops of more than 7%. Legal and reputational risk is live too: Taiwan prosecutors charged a TEL subsidiary in a TSMC trade-secrets case in December 2025, the unit said in May 2026 it would not appeal the ruling, and in April 2026 TEL cut ties with an executive reported to be linked to Chinese rivals. At roughly 40 times trailing earnings, the stock leaves little room for a guidance miss, and the switch to six-month guidance limits visibility. For US holders, the ADR adds yen-to-dollar currency swings and thinner OTC liquidity on top of the business risks, and the ADR fell about 5% on October 16, 2026 alone.
Is TELWY a buy or a sell?
We give no verdict on Tokyo Electron Ltd.. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.
The case for buying. AI-driven chip capital spending. AI servers need leading-edge logic chips, high-bandwidth memory (HBM) and large amounts of DRAM, and each of those requires more process steps and more equipment per wafer than older chips.
The case against. Semiconductor equipment is one of the most cyclical corners of the market.
Read the full bull and bear case on TELWY, including what would have to change to break either one. Walnut is not an investment adviser.
How is Tokyo Electron Ltd. (TELWY) valued? (approximate, October 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Tokyo Electron Ltd.'s investor relations page or your broker.
- Revenue (FY ended Mar 2026): ~¥2,443.5B, up ~0.5%
- Q1 FY2027 revenue (Apr to Jun 2026): ~¥732B, up ~33% YoY
- Q1 FY2027 operating income: ~¥211B (~28.9% margin)
- H1 FY2027 guidance (Apr to Sep 2026): ~¥1.62T sales, ~¥458B operating income
- Market cap: ~¥24.2T (~$153B)
- P/E (trailing / forward): ~40x / ~28x
Tokyo Electron reports in yen on a fiscal year ending in March, so dollar figures here are approximate conversions at roughly ¥158 per dollar. Trailing twelve-month net income was about ¥621 billion as of the June 2026 quarter. Second-quarter results, together with second-half guidance, are scheduled for October 30, 2026, and analysts expect quarterly sales of about ¥899 billion, up roughly 43% from a year earlier. ADR price comparisons before and after October 1, 2026 need to account for the 1-for-5 stock split, and some data feeds understate the ADR's market value by applying the ADR price to the share count.
Who competes with Tokyo Electron Ltd. (TELWY)?
US wafer-fab equipment leaders
Applied Materials (AMAT), Lam Research (LRCX) and KLA (KLAC) are TEL's closest global rivals. Applied and Lam lead in deposition and etch, the exact markets where TEL is trying to gain share, while KLA dominates inspection and metrology. All four sell to the same handful of chipmakers, so their order commentary moves together through the cycle.
Lithography partner
ASML (ASML) is less a rival than a partner, since its scanners are paired with TEL coater/developers in nearly every advanced fab and the two companies co-develop EUV processes. ASML's order book and EUV shipment plans are a useful early read on the same leading-edge spending cycle that drives TEL's track business, making it a natural comparison for investors.
Japanese equipment peers
Screen Holdings competes directly in wafer cleaning and coater/developers, Kokusai Electric in batch deposition, and Advantest (test) and Disco (dicing and grinding) serve adjacent steps. They share TEL's exposure to the yen, Asian customers and China export rules, so investors often compare valuations and China sales mix across this group.
What stocks are similar to Tokyo Electron Ltd. (TELWY)?
Other names that sit close to TELWY: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.
How to invest in Tokyo Electron Ltd. (TELWY)
There are three common ways to get TELWY exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic portfolio, so TELWY sits alongside other stocks that express the same thesis.
Walnut takes the portfolio route. Describe a thesis where TELWY fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.
New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.
The bottom line on Tokyo Electron Ltd. (TELWY)
Tokyo Electron is a high-quality but cyclical way to own the AI chip build-out: record sales and raised guidance on one side, a premium multiple, heavy China exposure and export-control risk on the other.
More on Tokyo Electron Ltd. (TELWY)
Whether TELWY is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is TELWY a buy or a sell?, and where the stock could go from here in the TELWY stock forecast.
For income investors, whether TELWY pays a dividend and how the payout looks is covered in does TELWY pay a dividend? And to weigh TELWY against a peer, read the full side-by-side comparisons: TELWY vs AMAT and TELWY vs LRCX.
Wondering how TELWY fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Tokyo Electron Ltd. with AI
Connect the broker you already use and ask Walnut's AI how TELWY fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What does Tokyo Electron do?
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Tokyo Electron makes the equipment chipmakers use to manufacture semiconductors. Its best-known product is the coater/developer, which applies photoresist to wafers and develops the circuit pattern after a lithography scanner exposes it; TEL holds the large majority of that market worldwide. It also sells etch, deposition, cleaning, wafer bonding and wafer prober systems, plus services and upgrades for its installed base. Customers include TSMC, Samsung, SK hynix, Intel, Micron and Chinese chipmakers. Founded in 1963, it is Japan's largest chip equipment company and one of the four or five biggest in the world, alongside Applied Materials, ASML, Lam Research and KLA. Fiscal 2026 sales were about ¥2.44 trillion, and most revenue comes from one-time equipment sales, which is why results rise and fall with chipmakers' capital budgets.
What is TELWY, and how is it different from the Tokyo-listed shares?
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TELWY is an American Depositary Receipt (ADR) that trades over the counter in the US rather than on the NYSE or Nasdaq. Each ADR represents a fraction of an ordinary Tokyo Electron share listed on the Tokyo Stock Exchange under code 8035. The ADR is priced in dollars, so its value reflects both the Tokyo share price and the yen-dollar exchange rate: a weaker yen lowers the dollar price even if the Tokyo shares are flat. Trading volume is much lower than in Tokyo, so bid-ask spreads can be wider, and US trading hours do not overlap with Tokyo's, which means the ADR often reacts overnight to news. The ADR changed symbol from TOELY to TELWY on September 17, 2026, around the stock split, and dividends are paid in dollars after depositary fees.
Why did the TELWY price drop from about $169 to the low $30s?
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Mostly because of the share count, not a collapse in value. Tokyo Electron carried out a 1-for-5 stock split effective October 1, 2026, so each old share became five new ones and the per-share price fell to roughly a fifth. The ADR, which also changed symbol from TOELY to TELWY on September 17, 2026, adjusted accordingly: a price of about $169 before the split is equivalent to roughly $34 after it. Any chart or return comparison across that date needs split-adjusted prices. Separately from the split, the shares have also genuinely fallen from their highs: the ADR's 52-week range is about $18.83 to $49.87 on a split-adjusted basis, and it closed at about $32 on October 16, 2026 after a 5% drop that day.
How did Tokyo Electron's latest results look?
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The latest reported quarter, April to June 2026 (Q1 of fiscal 2027), was a record. Net sales were about ¥732 billion, up roughly 33% from about ¥550 billion a year earlier, gross profit was a record of about ¥343 billion, and operating income rose about 46% to roughly ¥211 billion, for an operating margin near 28.9%. Net income rose about 40% to roughly ¥164 billion. Management raised first-half fiscal 2027 guidance to about ¥1.62 trillion of sales and ¥458 billion of operating income and planned a record interim dividend. That came after a flat fiscal 2026, when sales were a record ¥2.44 trillion but grew only about 0.5% and margins were squeezed by higher costs. The next report, covering July to September 2026, is scheduled for October 30, 2026.
Is Tokyo Electron stock a good investment?
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It depends on how an investor weighs a strong business against a rich price and a cyclical industry. The bull case is that TEL dominates coater/developers, is gaining ground in etch and packaging, and is riding AI-driven demand for leading-edge logic and high-bandwidth memory, with record quarterly sales, margins recovering toward 29% and analysts expecting fiscal 2027 sales around ¥3.4 trillion. The bear case is valuation and risk: roughly 40 times trailing earnings, a large share of sales from China that export controls could curtail, a Taiwan trade-secrets case involving a subsidiary, and an industry where orders have fallen sharply in past downturns. Currency swings and OTC trading add further variables for ADR holders. This is not a recommendation; it is a summary of how the debate is usually framed.
How exposed is Tokyo Electron to China?
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Significantly. Chinese chipmakers have been among TEL's largest customers in recent years, with China accounting for roughly a third or more of quarterly sales as those companies bought mature-node equipment, partly ahead of expected export restrictions. That share has drifted down from its peak as spending by TSMC, Samsung and memory makers on AI-related capacity has grown. The exposure cuts both ways: it added revenue during the US-led restrictions, but tighter rules from the US, Japan or the Netherlands could reduce demand quickly, and reports of new controls have caused sharp single-day share drops in the past. Chinese domestic equipment makers such as Naura and AMEC are also building out alternatives. TEL's April 2026 decision to cut ties with an executive reported to be linked to Chinese rivals shows how sensitive the issue has become.
Does Tokyo Electron pay a dividend?
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Yes, twice a year, with ex-dividend dates at the end of March and the end of September. TEL targets a payout ratio of about 50% of net income, so the dividend rises and falls with profits rather than staying flat. For fiscal 2026 it paid ¥628 per share on a pre-split basis (about ¥126 after adjusting for the October 2026 1-for-5 split), and it has planned a record interim dividend for fiscal 2027; the most recent ex-dividend date was September 29, 2026. ADR holders receive the payment converted to dollars, minus depositary fees and Japanese withholding tax, so the dollar amount also moves with the yen. The yield is modest, around 1% to 1.5%, because the share price is high relative to earnings. TEL is also returning cash through a ¥150 billion buyback running to March 2027.
Who are Tokyo Electron's main competitors?
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In etch and deposition, TEL's main rivals are Lam Research and Applied Materials, the two market leaders it is trying to take share from. KLA leads inspection and metrology, an adjacent step where TEL is small. In Japan, Screen Holdings competes directly in wafer cleaning and coater/developers, Kokusai Electric in batch deposition, while Advantest and Disco serve neighboring steps in test and dicing. Chinese equipment makers such as Naura and AMEC are growing quickly at home, helped by policy support and export controls. ASML is better understood as a partner than a competitor: its lithography scanners work alongside TEL's coater/developers in nearly every advanced fab. Comparing TEL with Applied, Lam and KLA on growth, margins and China exposure is the most common way investors frame its valuation.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with Tokyo Electron Ltd.'s investor relations page or your broker before making investment decisions.