Should Investors Buy Taiwan Semiconductor Stock Before Earnings?

Group 1 - TSMC will release its Q3 2025 earnings on Oct. 16, and it is a leading producer of advanced semiconductors crucial for AI advancements, suggesting long-term stock performance potential [1] - TSMC's market share has increased to over 70% as of Q2 2025, up from 67% in the previous quarter, reinforcing its position as the world's largest semiconductor foundry [2] - The company has experienced a 40% revenue increase in the first half of 2025, reaching $56 billion, and expects Q3 revenue between $31.8 billion and $33 billion, indicating a 38% rise at the midpoint [4] Group 2 - Grand View Research projects a 32% CAGR for AI through 2033, which aligns with TSMC's growth trajectory [3] - TSMC has consistently beaten revenue estimates in the past four quarters, suggesting the potential for continued strong performance in Q3 [5] - The company is focusing on advanced chip sales in the 2nm to 5nm range, where it competes primarily with Samsung [6] Group 3 - TSMC allocated nearly $20 billion to capital expenditures in the first half of the year, with plans for $165 billion investment in advanced manufacturing facilities in Arizona to meet demand [7] - Despite a 40% revenue growth in the first half of the year, TSMC's P/E ratio stands at 33, which may not deter investors [8]