Group 1: Company Performance - TSMC's stock closed at $180.53, reflecting a -0.31% change, underperforming the S&P 500 which gained 1.59% [1] - Over the past month, TSMC shares have decreased by 13%, compared to a 3.43% loss in the Computer and Technology sector and a 2.42% loss in the S&P 500 [1] - Analysts expect TSMC to report earnings of $2.03 per share, representing a year-over-year growth of 47.1%, with revenue anticipated at $25.25 billion, indicating a 33.77% increase from the same quarter last year [2] Group 2: Full Year Estimates - For the full year, analysts project earnings of $9.20 per share and revenue of $113.63 billion, marking increases of +30.68% and +26.14% respectively from the previous year [3] Group 3: Analyst Estimates and Ratings - Recent changes in analyst estimates for TSMC indicate a positive outlook on the company's business operations and profit generation capabilities [4] - The Zacks Rank system, which incorporates estimate changes, currently rates TSMC as 2 (Buy), with a historical average annual return of +25% for stocks rated 1 since 1988 [6] Group 4: Valuation Metrics - TSMC has a Forward P/E ratio of 19.69, aligning with the industry average, and a PEG ratio of 0.6, which is also consistent with the industry average [7] Group 5: Industry Context - The Semiconductor - Circuit Foundry industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 3, placing it in the top 2% of over 250 industries [8]

Financial Position and Performance - The parent company only financial statements present a fair view of the financial position as of December 31, 2024, and 2023, in accordance with relevant regulations [3]. - Total net revenue for 2024 reached $2,880,383,350, a 33.7% increase from $2,153,285,095 in 2023 [26]. - Gross profit margin improved to 55% in 2024, up from 53% in 2023, with gross profit amounting to $1,574,242,434 [26]. - Net income for 2024 was $1,173,267,703, a 39.9% increase from $838,497,664 in 2023, resulting in a net income margin of 41% [26]. - Total current assets rose to $1,609,565,096, accounting for 27% of total assets, compared to 24% in 2023 [25]. - Total noncurrent assets increased to $4,427,684,204, representing 73% of total assets, down from 76% in 2023 [25]. - Total liabilities amounted to $1,748,704,133, maintaining a consistent 29% of total assets [25]. - Total equity attributable to shareholders of the parent reached $4,288,545,167, representing 71% of total assets, unchanged from 2023 [25]. - Basic and diluted earnings per share for 2024 were both $45.25, compared to $32.34 in 2023 [28]. - Other comprehensive income for 2024 was $72,568,913, compared to a loss of $7,988,122 in 2023 [28]. - As of December 31, 2023, the total comprehensive income for Taiwan Semiconductor Manufacturing Company Limited was $838,012,766, reflecting a significant increase from the previous year [30]. Cash Flow and Investments - Cash generated from operations increased to NT$2,016,898,156 in 2024, up 47.9% from NT$1,364,486,858 in 2023 [33]. - Net cash generated by operating activities rose to NT$1,835,575,369, compared to NT$1,207,082,903 in the previous year, reflecting a 52% increase [34]. - Net cash used in investing activities was NT$618,548,957 in 2024, slightly higher than NT$588,128,653 in 2023 [34]. - Net cash used in financing activities increased to NT$900,668,625 in 2024 from NT$529,126,435 in 2023, indicating a significant rise in financing outflows [34]. - Cash dividends paid in 2024 amounted to NT$363,055,226, compared to NT$291,721,852 in 2023, marking a 24.5% increase [34]. - The ending cash and cash equivalents for 2024 were NT$1,035,061,499, up from NT$718,703,712 at the end of 2023, representing a 44% increase [34]. - The company reported financial assets at amortized cost of $14,208,158 in 2024, a decrease from $18,371,705 in 2023, reflecting a decline of approximately 23% [149]. - The company increased its investment in TSMC Global by NT$261,677,200 thousand in 2024 [171]. - The company increased its investment in TSMC Arizona by NT$236,121,500 thousand in 2024, compared to NT$292,649,510 thousand in 2023 [171]. - The company increased its investment in JASM by NT$15,754,106 thousand in 2024, raising its ownership from 71% to 73% [172]. - The company's shareholding in ESMC decreased from 100% to 70% after selling 10% of its shares to Robert Bosch GmbH, Infineon Technologies AG, and NXP Semiconductors N.V. [174]. Audit and Compliance - Key audit matter identified includes the commencement of depreciation related to property, plant, and equipment classified as equipment under installation and construction in progress [6]. - Management is responsible for assessing the company's ability to continue as a going concern and must disclose relevant matters [11]. - The audit procedures included evaluating the reasonableness of management's judgments regarding the commencement of depreciation [14]. - The auditors communicated significant audit findings and deficiencies in internal control to those charged with governance [15]. - The overall presentation and content of the financial statements were evaluated to ensure fair representation of underlying transactions [18]. - The independent auditors' report was issued on February 12, 2025, by Deloitte & Touche [20]. - The financial statements are prepared in accordance with accounting principles generally accepted in the Republic of China [21]. - The engagement partners for the audit were Shih Tsung Wu and Shang Chih Lin [19]. Assets and Liabilities - The total assets of the company reached $3,917,252,023 by December 31, 2024, showing a robust growth trajectory [31]. - The company retired 1,402 shares, impacting the treasury stock by $14,018 [31]. - The balance of notes and accounts receivable at amortized cost increased to $34,036,332 in 2024 from $28,676,101 in 2023, with a loss allowance of $451,913 [160]. - Total inventories increased to $270,716,472 in 2024 from $238,259,195 in 2023, with net inventory losses recorded as $(79,431) in 2024 compared to $3,526,480 in 2023 [165][166]. - The balance of domestic unsecured bonds payable increased from $439,869,855 in 2023 to $453,839,281 in 2024, representing a growth of approximately 3.2% [192]. - The current portion of bonds payable rose significantly from $6,997,710 in 2023 to $24,397,381 in 2024, indicating a substantial increase of about 249% [192]. Employee Benefits and Expenses - The company recognized pension expenses of NT$4,537,289 thousand for the year ended December 31, 2024 [200]. - The company recognized pension expenses of NT$4,154,345 thousand for the year ended December 31, 2023 [200]. - The company’s defined benefit costs are determined using the Projected Unit Credit Method, impacting employee benefits expense in the period they occur [116]. Financial Instruments and Derivatives - Financial assets are classified into three categories: financial assets at FVTPL, investments in equity instruments at FVTOCI, and financial assets at amortized cost [57]. - Financial assets measured at amortized cost are recognized at carrying amount determined by the effective interest method less any impairment loss [59]. - A loss allowance for expected credit loss is recognized for financial assets at amortized cost, with accounts receivable measured at lifetime expected credit losses [60]. - The Company derecognizes a financial asset only when the contractual rights to cash flows expire or when it transfers the asset and substantially all risks and rewards of ownership [61]. - Financial liabilities are measured at amortized cost or at FVTPL, with gains or losses recognized in profit or loss for those at fair value [66]. - Derivative financial instruments are initially recognized at fair value and subsequently remeasured, with gains or losses recognized in profit or loss unless designated as hedging instruments [71]. Intangible Assets and Goodwill - Goodwill arising from business acquisitions is carried at cost less accumulated impairment losses, tested annually for impairment [102]. - Other intangible assets are carried at cost less accumulated amortization, with amortization recognized over their estimated useful lives [104]. - The Company recognizes impairment losses for goodwill directly in profit or loss, which are not reversible in subsequent periods [105]. - The total carrying amount of intangible assets increased from $87,900,537 in 2023 to $94,615,495 in 2024, reflecting a growth of approximately 7.8% [190]. - The accumulated amortization and impairment for intangible assets rose from $70,216,473 in 2023 to $74,163,413 in 2024, indicating an increase of about 5.6% [190]. - The carrying amount of goodwill remained constant at $1,567,756 from 2023 to 2024, indicating no change in this asset category [190]. Green Bonds and Financing - The company issued a total of $12,200,000 in green bonds with a coupon rate of 1.54% for the tranche A from March 2023 to March 2028 [198]. - The total issuance amount for tranche B of the green bonds in March 2023 is $2,300,000 with a coupon rate of 1.60% [198]. - The company plans to issue $13,100,000 in green bonds with a coupon rate of 1.60% for tranche A from May 2023 to May 2028 [198]. - A total of $11,400,000 in green bonds will be issued for tranche A from June 2023 to June 2028 with a coupon rate of 1.60% [198]. - The company has a total issuance of $7,300,000 in green bonds for tranche A from August 2023 to August 2028 with a coupon rate of 1.60% [198]. - The company plans to issue $4,300,000 in bonds with a coupon rate of 1.62% for tranche A from October 2023 to October 2028 [198].

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: Nvidia chief Jensen Huang says the Silicon Valley chip titan has successfully ramped up production of its new Blackwell processor that power artificial intelligence in data centers. Nvidia on Wednesday said it finished its fiscal year with record high revenue of $130.5 billion, driven by demand for its chips to power artificial ...

Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) has demonstrated strong performance with a stock increase of 46.7% over the past year, while still being attractively valued with a forward P/E ratio of 20.22, slightly below the industry average of 20.92 [1][3] Financial Performance - TSMC reported Q4 2024 revenues of $26.88 billion, a 37% year-over-year increase, exceeding estimates by nearly $504 million [5] - Earnings per share (EPS) for Q4 2024 were $2.24, surpassing expectations by 8 cents [5] - Advanced process technologies (7nm and below) contributed 74% of wafer revenues, with high-performance computing (HPC) accounting for 53% of total revenues [7] Future Outlook - TSMC expects Q1 2025 revenues between $25 billion and $25.8 billion, indicating a 34.7% year-over-year increase at the midpoint [8] - The Zacks Consensus Estimate for TSMC's 2025 EPS is $9.20, reflecting a 30.7% year-over-year increase [9] AI and HPC Demand - The ongoing AI boom positions TSMC as a key player in a multi-year growth cycle, with AI-related revenues tripling in 2024 and expected to double again in 2025 [10][11] - TSMC forecasts a compound annual growth rate (CAGR) of approximately 40% for AI-related revenues over the next five years [12] Capacity Expansion and Global Strategy - TSMC plans to invest between $38 billion and $42 billion in 2025, with 70% allocated to advanced process technologies [13] - The company is expanding globally with high-volume production in Arizona and additional fabs in Japan and Germany, expecting limited impact on gross margins from these investments [14] Investment Recommendation - TSMC's strong market position, leadership in AI and HPC manufacturing, and strategic investments make it a compelling buy at current levels, presenting an attractive entry point for long-term investors [15][16]

Core Viewpoint - The recent 13F filings reveal that Coatue Management, led by billionaire Philippe Laffont, has significantly increased its investment in Taiwan Semiconductor Manufacturing (TSMC), indicating strong confidence in the company's future growth potential in the AI sector [1][2][10]. Company Overview - Taiwan Semiconductor Manufacturing is the world's largest contract chip manufacturer, producing chips for major tech companies like Nvidia and Apple, allowing these companies to focus on design rather than manufacturing [3]. - TSMC maintains a neutral position in the chip market, manufacturing for competitors such as Nvidia and AMD, which has contributed to its rise as the leading chipmaker [4]. Growth Projections - TSMC's management anticipates a 45% compounded annual growth rate (CAGR) for its AI-related chips over the next five years, reflecting the increasing demand driven by the AI arms race [5]. - Overall, TSMC projects a total revenue CAGR of approximately 20% over the next five years, showcasing robust growth potential for an already large business [6]. Investment Insights - Despite TSMC's strong growth outlook, its stock is currently valued similarly to market-average companies, trading at 22.4 times forward earnings, which is comparable to the S&P 500's valuation of 22.5 times [9]. - The discrepancy between TSMC's growth potential and its current market valuation presents a compelling investment opportunity, as indicated by Coatue Management's recent $120 million investment in TSMC [10].

Core Viewpoint - TSMC shares have experienced a decline of 10.9% over the past four weeks, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - A hammer chart pattern indicates a minor difference between opening and closing prices, with a long lower wick suggesting that the stock found support after a downtrend [3][4]. - The occurrence of a hammer pattern at the bottom of a downtrend signals that bears may have lost control, indicating a potential trend reversal [4]. Fundamental Analysis - There has been an upward trend in earnings estimate revisions for TSMC, which is a bullish indicator suggesting potential price appreciation in the near term [6]. - The consensus EPS estimate for TSMC has increased by 0.1% over the last 30 days, indicating that analysts expect better earnings than previously predicted [7]. - TSMC holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [8].

Core Insights - The article highlights four stocks that are considered to have solid growth potential, with a specific mention of Taiwan Semiconductor (TSM) [1]. Group 1 - Maintaining a watch list is essential for investors to identify and act on opportunities in the market [1]. - The video suggests that performing due diligence ahead of time prepares investors to capitalize on potential investments [1].

Nvidia leads in the chip realm, but there may be a better stock looming in the background.Over the last couple of years, semiconductor stocks have been some of the biggest beneficiaries of the market's newest megatrend, artificial intelligence (AI). In particular, suppliers of graphics processing units (GPUs) to data centers such as Nvidia and Broadcom have witnessed abnormally high gains relative to those seen across the S&P 500 and Nasdaq Composite.In the background, however, foundry specialist Taiwan Sem ...

Chip investing has become a huge part of many investors' portfolios, whether they understand it or not. Chips are in nearly every device that consumers buy, but some of the most high-powered chips are produced by one company: Taiwan Semiconductor Manufacturing (TSM -0.88%).Taiwan Semiconductor is the top dog in the chipmaking space, and my top stock to buy and hold in this industry. It has several key partnerships with top technology companies, and its culture of continuous improvement solidifies this thesi ...

Core Viewpoint - Taiwan Semiconductor is showing signs of gaining momentum after experiencing significant declines, as noted in the analysis from October 19th, 2024 [1] Group 1 - The stock of Taiwan Semiconductor (NYSE: TSM) is starting to demonstrate strong evidence of recovery [1]