TSMC(US:TSM) The Motley Foolยท2025-06-04 18:58Core Viewpoint - TSMC is projected to achieve "record profit" in 2025, with CEO C.C. Wei expressing confidence in the company's growth despite potential tariff impacts [1][3]. Group 1: Company Growth and Market Demand - TSMC anticipates continued sales growth in the mid-20% range, driven by high demand for artificial intelligence applications and emerging markets such as humanoid robots [4]. - The company believes that even if U.S. demand for semiconductors decreases due to tariffs, alternative buyers will sustain overall demand [3]. Group 2: Financial Performance and Stock Valuation - TSMC reported a profit of $39.4 billion over the past year, but its free cash flow (FCF) was only $27.3 billion, indicating a cash profit of approximately $0.69 for each $1 in claimed profit [5][6]. - The company's price-to-earnings (P/E) ratio is 24, which appears attractive compared to its growth rate, but the price-to-free-cash-flow ratio exceeds 31, suggesting that TSMC stock may still be considered expensive [5][6].