Company Performance - TSMC closed at $190.08, reflecting a -0.61% change from the previous day, underperforming the S&P 500 which gained 0.35% [1] - Over the past month, TSMC shares have decreased by 3.38%, while the Computer and Technology sector gained 0.56% and the S&P 500 increased by 1.69% [1] Upcoming Financial Results - TSMC is expected to report an EPS of $2.14, representing a 48.61% increase from the same quarter last year [2] - The projected revenue for TSMC is $25.96 billion, which is a 32.27% increase year-over-year [2] Full Year Projections - For the full year, earnings are projected at $6.95 per share, a 34.17% increase from the previous year, with revenue expected to reach $88.39 billion, up 27.55% [3] - Changes in analyst estimates for TSMC are important as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [3] Zacks Rank and Valuation - TSMC currently holds a Zacks Rank of 1 (Strong Buy), with a history of outperforming the market, as 1 stocks have returned an average annual gain of +25% since 1988 [5] - The Zacks Consensus EPS estimate has increased by 2.99% over the last 30 days [5] - TSMC has a Forward P/E ratio of 27.52, which is in line with the industry average [6] Industry Metrics - TSMC has a PEG ratio of 0.88, matching the average PEG ratio for the Semiconductor - Circuit Foundry industry [7] - The Semiconductor - Circuit Foundry industry is ranked 1 in the Zacks Industry Rank, placing it in the top 1% of over 250 industries [8]

Taiwan Semiconductor Manufacturing Company (NYSE: TSM ) is the world's largest semiconductor foundry and its stock is 18% undervalued, according to my discounted cash flow analysis. Such a discount looks like a gift if we consider TSM's unique strategic positioning, cutting-edgeComing from an IT background, I have dived into the U.S. stock market seven years ago by managing portfolio of my family. Starting managing real money has been challenging for the first time, but long hours of mastering fundamental a ...

Core Viewpoint - Nvidia has become the world's largest company with a market capitalization of $3.48 trillion and has seen a revenue increase of 782% over the last five years, but it may not be a suitable investment at its current high valuation [1][2] Company Analysis - Nvidia designs advanced computer chips for AI but outsources manufacturing to Taiwan Semiconductor Manufacturing Company (TSMC), which is the primary manufacturer of Nvidia's chips [3] - TSMC is currently the only manufacturer capable of producing the most advanced computer chips at scale, holding a significant competitive advantage over other companies like Intel and Samsung [4] - TSMC has a market capitalization that recently surpassed $1 trillion, with revenue of $83.9 billion and operating income of $36 billion over the past 12 months, reflecting steady growth in the advanced semiconductor sector [5] Strategic Developments - TSMC plans to introduce its 2-nanometer node by 2025, reinforcing its monopoly in advanced semiconductors and enhancing its pricing power [6] - To mitigate geopolitical risks associated with its concentration in Taiwan, TSMC is diversifying its supply chain by investing in facilities in the United States, Mexico, Europe, and Japan, which will help grow revenue and reduce risks [7] Investment Potential - TSMC's stock trades at a P/E ratio of 30, comparable to the S&P 500 average, but with significant growth prospects in the advanced semiconductor market [8] - The demand for advanced computer chips is expected to continue rising, driven by major technology companies increasing their investments in chips and data centers, which bodes well for TSMC's revenue growth [9] - TSMC is anticipated to grow its earnings rapidly over the next decade, positioning itself as one of the largest companies globally by market cap, making it an attractive investment for those interested in the AI sector [10]

Taiwan Semiconductor Manufacturing Company Ltd. (TSM) , the global leader in semiconductor foundry services and also known as TSMC, has delivered an astounding 80% rally in its stock price year-to-date. This surge has outpaced the broader market, with the S&P 500 and the Zacks Computer & Technology sector rising 23.4% and 25.7%, respectively.YTD Price Return PerformanceImage Source: Zacks Investment ResearchInvestors may question whether this rally leaves room for further upside or if the stock has reached ...

Investors might be wondering how the results of the 2024 election will affect Taiwan Semiconductor Manufacturing (TSMC) (TSM 0.79%). As the world's largest and most advanced semiconductor producer, it is one of the most critical companies in an important industry.However, the incoming Trump administration has emphasized an increasing need for domestic manufacturing. Hence, the election results could also make it a target. Thus, chip stock investors should probably contemplate whether they should buy before ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

The $1 trillion valuation club is a fairly exclusive level few stocks have ever reached. Only 10 companies worldwide have achieved this level at the time of writing. One of the latest companies stepping through the doorway of this club is Taiwan Semiconductor (TSM -1.32%), although it can fluctuate under that mark based on day-to-day trading. Taiwan Semiconductor is the world's largest contract chip manufacturer, and it has grown significantly over the past few years as we use more advanced technological de ...

Financial Statements and Audits - Consolidated financial statements for the nine months ended September 30, 2024 and 2023 have been reviewed by independent auditors[2] - The review was conducted in accordance with the Standards on Review Engagements of the Republic of China 2410[3] - No significant issues were identified that would indicate the financial statements do not present fairly the company's financial position and performance[4] - The financial statements are prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34[4] - The engagement partners for the review are Shih Tsung Wu and Shang Chih Lin[6] - The financial statements are presented in thousands of New Taiwan Dollars[10] Cash and Cash Equivalents - Cash and cash equivalents increased to $1,886,780,555 as of September 30, 2024, up from $1,465,427,753 on December 31, 2023, representing a 29% increase[11] - Cash and cash equivalents at the end of the period on September 30, 2024, were $1,886,780,555, a 43.8% increase from $1,311,806,535 on September 30, 2023[27] - Cash and cash equivalents increased to $1,886,780,555 as of September 30, 2024, compared to $1,465,427,753 on December 31, 2023[43] Assets and Liabilities - Total current assets grew to $2,773,913,863 as of September 30, 2024, compared to $2,194,032,910 on December 31, 2023, a 26% increase[11] - Property, plant and equipment remained stable at $3,071,599,327 as of September 30, 2024, slightly down from $3,064,474,984 on December 31, 2023[11] - Total noncurrent assets increased to $3,391,744,313 as of September 30, 2024, up from $3,338,338,305 on December 31, 2023[11] - Total liabilities rose to $2,143,735,885 as of September 30, 2024, compared to $2,049,108,368 on December 31, 2023[11] - Equity attributable to shareholders of the parent increased to $3,990,019,153 as of September 30, 2024, up from $3,458,913,627 on December 31, 2023[11] - Unappropriated earnings grew to $3,346,232,342 as of September 30, 2024, up from $2,846,883,893 on December 31, 2023, a 17.5% increase[11] - Total equity increased to $4,021,922,291 as of September 30, 2024, compared to $3,483,262,847 on December 31, 2023[11] - Total assets used by the company increased to $3,071,599,327 as of September 30, 2024, compared to $3,064,474,984 at the end of 2023[74] - The company's total property, plant, and equipment increased to $7,686,316,414 as of September 30, 2024, from $7,218,545,455 at the start of the year[74] - Accumulated depreciation and impairment for property, plant, and equipment reached $4,614,924,786 as of September 30, 2024[74] - The carrying amount of land and land improvements increased to $12,557,340 as of September 30, 2024, from $7,063,923 at the start of the year[74] - The company's buildings carrying amount rose to $441,530,615 as of September 30, 2024, from $430,809,064 at the start of the year[74] - Machinery and equipment carrying amounts decreased slightly to $1,627,385,995 as of September 30, 2024, from $1,685,977,156 at the start of the year[74] - Total liabilities arising from financing activities as of September 30, 2024, were $1,026,076,753, up from $1,003,982,676 in 2023[137] - Total non-derivative financial liabilities amounted to $1,886,618,951 as of September 30, 2024, with $640,886,544 due in less than one year[155] - Bonds payable totaled $1,176,813,823 as of September 30, 2024, with $74,901,590 due in less than one year and $580,737,650 due in more than five years[155] - Long-term bank loans amounted to $29,967,928 as of September 30, 2024, with $2,968,389 due in less than one year and $3,351,665 due in more than five years[155] - Total non-derivative financial liabilities as of December 31, 2023, amounted to $1,849,122,784, with bonds payable being the largest component at $1,135,842,880[156] - Lease liabilities as of December 31, 2023, totaled $34,847,231, with $21,754,375 due in more than 5 years[156] - Forward exchange contracts outflows as of December 31, 2023, were $64,826,427, with inflows of $65,384,000, resulting in a net outflow of $557,573[156] - Lease liabilities carrying amounts as of September 30, 2024, were $31,108,505, slightly down from $31,492,386 at the end of 2023[82] - Lease liabilities as of September 30, 2024, are projected to be $20,497,138, with $10,174,011 due in 5-10 years[157] Revenue and Profit - Net revenue for the three months ended September 10 was $759.68 million, representing a 100% increase compared to the same period last year[15] - Gross profit for the three months ended September 10 was $479.35 million, with a gross margin of 42%[15] - Operating expenses for the three months ended September 10 were $79.08 million, accounting for 7% of net revenue[15] - Income from operations for the three months ended September 10 was $260.77 million, representing a 47% operating margin[15] - Net income for the three months ended September 10 was $325.08 million, a 43% increase compared to the same period last year[15] - Total comprehensive income for the three months ended September 10 was $201.60 million, a 41% increase compared to the same period last year[15] - Basic earnings per share for the three months ended September 10 was $12.55[15] - Diluted earnings per share for the three months ended September 10 was $12.54[15] - Net revenue for the nine months ended September 30 was $2.03 billion, a 100% increase compared to the same period last year[15] - Net income for the nine months ended September 30 was $797.96 million, a 20% increase compared to the same period last year[15] - Net income for the period ending September 30, 2023, was NT$599,785,521 thousand[17] - Total comprehensive income for the period ending September 30, 2023, was NT$627,873,872 thousand[17] - Net income for the period ending January 1, 2024, was NT$798,587,976 thousand[17] - Total comprehensive income for the period ending January 1, 2024, was NT$831,645,140 thousand[17] - Income before income tax for the nine months ended September 30, 2024, was $957,040,631, compared to $700,890,335 for the same period in 2023, representing a 36.5% increase[23] - Net cash generated by operating activities for the nine months ended September 30, 2024, was $1,205,971,785, a 42.3% increase from $847,138,000 in the same period in 2023[23] - Net revenue for the nine months ended September 30, 2024, reached $2,025,846,521, a significant increase from $1,536,206,985 in the same period in 2023[109] - Wafer revenue for the nine months ended September 30, 2024, was $1,763,258,801, up from $1,342,457,631 in 2023[109] - Revenue from the United States for the nine months ended September 30, 2024, was $1,310,631,705, compared to $969,078,250 in 2023[111] - High Performance Computing revenue for the nine months ended September 30, 2024, was $1,015,474,913, up from $667,707,961 in 2023[111] - 3-nanometer technology revenue for the nine months ended September 30, 2024, was $265,482,929, a substantial increase from $29,478,462 in 2023[111] - 5-nanometer technology revenue for the nine months ended September 30, 2024, was $605,528,724, compared to $440,305,826 in 2023[111] - 7-nanometer technology revenue for the nine months ended September 30, 2024, was $311,614,860, up from $264,328,384 in 2023[111] - Smartphone revenue for the nine months ended September 30, 2024, was $705,071,120, compared to $545,740,324 in 2023[111] - Automotive revenue for the nine months ended September 30, 2024, was $101,556,018, slightly down from $101,636,345 in 2023[111] - Net income available to common shareholders for the nine months ended September 30, 2024, was $798,587,976, up from $599,785,521 in the same period of 2023[120] - Basic EPS for the nine months ended September 30, 2024, was $30.80, compared to $23.13 in the same period of 2023[120] - Net revenue from associates for the three months ended September 30, 2024, was $3,729,245, and for the nine months ended September 30, 2024, it was $11,394,850[179] - Purchases from associates for the three months ended September 30, 2024, were $1,282,865, and for the nine months ended September 30, 2024, they were $3,545,858[180] Cash Flow and Dividends - Cash dividends to shareholders for the period ending September 30, 2023, amounted to NT$226,900,972 thousand[17] - Cash dividends to shareholders for the period ending January 1, 2024, amounted to NT$298,218,286 thousand[17] - Cash dividends paid for the nine months ended September 30, 2024, were $259,320,708, a 21.2% increase from $213,925,639 in the same period in 2023[26] - Net increase in cash and cash equivalents for the nine months ended September 30, 2024, was $421,352,802, compared to a net decrease of $31,007,548 in the same period in 2023[27] - TSMC's cash dividends per share for Q3 2024 were NT$4.50, compared to NT$4.00 in Q2 2024 and Q1 2024[101] - TSMC's cash dividends to shareholders for Q3 2024 were $116,697,300, compared to $103,721,521 in Q2 2024 and $103,734,517 in Q1 2024[101] - Special capital reserve for Q3 2024 was -$28,020,822, compared to -$17,228,363 in Q3 2023 and $17,166,163 in Q4 2022[101] - Foreign currency translation reserve showed a loss of $25,316,769 for the nine months ended September 30, 2024[101] - Unrealized gain (loss) on financial assets at FVTOCI for equity instruments was $4,604,652 for the nine months ended September 30, 2024[101] - Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal was $4,888,979 for the nine months ended September 30, 2024[101] Investments and Financial Instruments - Financial assets at fair value through profit or loss totaled $15,566,035 as of September 30, 2024, up from $14,342,093 on December 31, 2023[44] - TSMC's subsidiaries, including TSMC North America, TSMC Europe, and TSMC Japan, maintain 100% ownership as of September 30, 2024[37] - VisEra Technologies Company Ltd. ownership decreased slightly from 68% to 67% as of September 30, 2024[37] - Japan Advanced Semiconductor Manufacturing, Inc. (JASM) ownership increased from 71% to 73% as of September 30, 2024[37] - TSMC's financial liabilities include forward exchange contracts, with current liabilities at $971,386 as of September 30, 2024[44] - The initial application of IFRS Accounting Standards amendments did not materially impact TSMC's accounting policies[30] - IFRS 18, effective January 1, 2027, will require reclassification of income and expenses into operating, investing, financing, income taxes, and discontinued operations categories[31] - Outstanding forward exchange contracts as of September 30, 2024 include NT$5,984,214 thousand and US$2,608,500 thousand, with maturities from October 2024 to December 2024[47] - Investments in debt instruments at FVTOCI as of September 30, 2024 total $197,152,287, with corporate bonds accounting for $106,675,983[47] - Equity investments designated at FVTOCI were divested for NT$3,486,190 thousand in the nine months ended September 30, 2024[48] - Cumulative loss allowance for expected credit loss on debt instruments at FVTOCI recognized as NT$61,721 thousand as of September 30, 2024[48] - Financial assets at amortized cost as of September 30, 2024 total $164,464,159, with corporate bonds accounting for $137,366,565[49] - Interest rate futures contracts used for fair value hedging as of September 30, 2024 have a contract amount of US$48,300 thousand[53] - Forward exchange contracts used for cash flow hedging as of September 30, 2024 show a change in value of $5,042 for ineffectiveness calculation[58] - Bank loans denominated in foreign currency designated as hedges of net investments in foreign operations total $27,290,400 as of December 31, 2023[51] - Financial assets at FVTOCI as of September 30, 2024 include $14,354,908 in equity instruments, with $7,502,973 in non-publicly traded equity investments[47] - The hedge ratio for interest rate futures contracts is adjusted in response to financial market changes and capped at 100%[52] - Bank loans hedging instruments contract amount is JPY 124,500,000 with an annual interest rate of 0% and matures by April 2024, with a balance in other equity of $618,180[61] - The change in value used for calculating hedge ineffectiveness for bank loans was $793,830 for the nine months ended September 30, 2024, compared to $1,029,030 for the same period in 2023[62] - The change in value used for calculating hedge ineffectiveness resulted in a loss of $5,042 for the nine months ended September 30, 2024, compared to a loss of $39,898 for the same period in 2023[63] - Notes and accounts receivable, net, increased to $249,570,573 as of September 30, 2024, from $201,313,914 as of December 31, 2023[65] - The loss allowance for accounts receivable decreased to $496,026 as of September 30, 2024, from $531,554 as of December 31, 2023[67] - Inventories increased to $292,883,930 as of September 30, 2024, from $250,997,088 as of December 31, 2023[69] - Net inventory losses (reversal of write-down of inventories) were $137,620 for the three months ended September 30, 2024, compared to a reversal of $1,090,783 for the same period in 2023[70] - The carrying amount of investments accounted for using the equity method in Vanguard International Semiconductor Corporation (VIS) was $13,105,023 as of September 30, 2024[71] - The carrying amount of investments accounted for using the equity method in Systems on Silicon Manufacturing Company Pte Ltd. (SSMC) was $10,713,507 as of September 30, 2024[71] - The carrying amount of investments accounted for using the equity method in Xintec Inc. (Xintec) was $4,028,681 as of September 30, 2024[71] - Total financial assets grew to $2,601,831,244 as of September 30, 2024, up from $2,023,905,526 in December 2023 and $1,897,225,822 in September 2023[138] - Financial assets at FVTPL increased to $15,566,035 as of September 30, 2024, compared to $14,342,093 in December 2023 and $490,163 in September 2023[138] - Total financial assets measured at fair value on a recurring basis as of December 31, 2023, were $203,123,752, with Level 2 assets contributing $168,054,016[161] - Corporate bonds held as financial assets at FVTOCI

TSMC (NYSE: TSM ) continues to show strong results which is improving sentiment on Wall Street despite geopolitical headwinds like the recent ban on export of its chips. YTD TSM’s stock has shown total returns of 109% compared toI have worked in the technology sector for over 4 years. This included working with industry stalwarts like IBM. I have done my MBA in finance and have been covering various blue chip stocks for the past 6 years. Having hands-on knowledge in the technology sector has helped me gain ...

The U.S. government said the company's AI chips can't go to China. Shares of Taiwan Semiconductor (TSM -3.55%), a semiconductor manufacturer, fell today after Reuters reported that the U.S. Commerce Department told the company to stop sending its advanced chips to China, effective immediately. TSM's stock was down by 3.56% as of 4 p.m. ET. The U.S. is restricting chips to China The U.S. government has been cracking down on chipmakers exporting processors to China that are used for artificial intelligence (A ...