TSMC(US:TSM) ZACKSยท2025-10-17 11:45Core Insights - TSMC reported a 39.1% year-over-year increase in third-quarter profit, driven by strong demand for AI chips, and raised its 2025 revenue growth outlook for the second time this year [1][2][4] Financial Performance - TSMC's revenues reached NT$989.92 billion, exceeding the expected NT$977.46 billion, while net income was NT$452.3 billion, surpassing the estimate of NT$417.69 billion [3] - The company expects annual sales growth in the mid-30% range, a few percentage points higher than previous forecasts [2] Market Trends - The AI market is experiencing positive developments, leading to increased demand for semiconductor products, as noted by TSMC's CEO [4] - TSMC's stock has surged 75% over the past six months, significantly outperforming the S&P 500's 26% increase, bringing its market capitalization to $1.56 trillion [5] Valuation Metrics - TSMC's trailing P/E ratio is 34.74X, higher than the industry average of 29.72X, with a price/book ratio of 10.53X compared to the industry's 9.70X [6] Trade Relations - TSMC is monitoring U.S. tariff developments and may receive exemptions due to its significant investments in U.S. facilities [7] Investment Opportunities - Investors can consider TSMC through various ETFs, including SP Funds S&P World (ex-US) ETF, SP Funds S&P Global Technology ETF, and others, which have significant allocations to TSMC [8]