Breaking Down Taiwan Semiconductor's Earnings and Future Upside

Core Viewpoint - The technology sector is expected to face increased volatility and uncertainty due to President Trump's trade tariffs, particularly affecting Chinese exports [1] Group 1: Taiwan Semiconductor Manufacturing (TSM) Overview - TSM's stock is currently priced at $148.04, with a 52-week range of $125.78 to $226.40 and a dividend yield of 1.46% [2] - The company has a significant role in the semiconductor industry, being crucial for major tech companies like NVIDIA and Apple [4] - TSM's strong market presence allows it to maintain pricing power, which may have influenced the decision to exempt semiconductors from trade tariffs [5] Group 2: Earnings and Financial Performance - TSM reported a 40% revenue growth over the past year, defying expectations amid trade war concerns [8] - The company achieved over 60% growth in annual earnings per share (EPS), indicating strong underlying performance [9] - Despite fears of a downturn due to tariffs, TSM's stock has not suffered as anticipated, trading at approximately 65% of its 52-week high [11] Group 3: Market Forecast and Analyst Ratings - The 12-month stock price forecast for TSM is $212.00, suggesting a potential upside of 43.20% [12] - Wall Street analysts have a consensus price target of $220 per share, indicating a 50.2% upside from current levels [13] - Analysts at Susquehanna have reiterated a positive rating with a higher valuation of $250 per share, suggesting a 70.6% upside potential [14]