Should Investors Buy Taiwan Semiconductor (TSM) Stock as Q1 Earnings Approach?

Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) is a critical player in the semiconductor industry, responsible for 50% of the world's semiconductor chip components, and is expected to report strong Q1 results amid global trade tensions and strategic investments in the U.S. [1][2] Group 1: Q1 Expectations and Financial Performance - TSMC's Q1 sales are projected to increase by 33% to $25.2 billion compared to$18.87 billion in the same quarter last year [3] - The expected Q1 EPS is anticipated to rise by 46% to $2.02 from$1.38 per share a year ago, with TSMC having exceeded the Zacks EPS Consensus for 17 consecutive quarters [3] - TSMC's total sales for FY2025 are expected to grow by 26% to $113.51 billion, with FY2026 sales projected to increase by 19$135.44 billion [4][5] Group 2: EPS Growth and Estimates - TSMC is expected to achieve 29% EPS growth in FY2025, with annual earnings projected to rise by 21% in FY2026 to $11.02 per share [5] - Recent estimates for FY2025 and FY2026 EPS have seen slight downward revisions over the last 60 days [6] Group 3: Stock Performance and Valuation - Year-to-date, TSMC's stock has declined by 20$100 billion investment in U.S. semiconductor manufacturing is a strategic move to mitigate production risks and navigate trade tensions [1][2] - The company serves major U.S. firms such as Nvidia, Apple, and AMD, highlighting its importance in the tech supply chain [2]