Core 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]

Company Performance - TSMC's stock closed at $229.17, reflecting a -2.4% change from the previous day's closing price, underperforming compared to the S&P 500, which lost 0.79% [1] - Over the past month, TSMC shares have gained 14.44%, outperforming the Computer and Technology sector's gain of 7.88% and the S&P 500's gain of 5.22% [1] Earnings Projections - TSMC's projected earnings per share (EPS) for the upcoming earnings disclosure is $2.32, indicating a 56.76% increase from the same quarter last year [2] - The consensus estimate for TSMC's revenue is $30.05 billion, reflecting a 44.32% increase from the same quarter last year [2] - For the full year, earnings are projected at $9.28 per share and revenue at $116.93 billion, showing increases of +31.82% and +29.8% respectively from the previous year [3] Analyst Estimates and Rankings - Recent modifications to analyst estimates for TSMC indicate positive sentiment regarding the company's business operations and profit generation capabilities [4] - The Zacks Rank system, which considers estimate changes, currently ranks TSMC as 2 (Buy), with a historical average annual return of +25% for stocks rated 1 since 1988 [6] Valuation Metrics - TSMC is trading at a Forward P/E ratio of 25.31, which aligns with the industry's Forward P/E of 25.31 [7] - The PEG ratio for TSMC is 1.22, matching the average PEG ratio of the Semiconductor - Circuit Foundry industry [7] Industry Context - The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector and holds a Zacks Industry Rank of 2, placing it in the top 1% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Insights - Taiwan Semiconductor Manufacturing Company (TSMC) is making a significant investment of $100 billion in the United States, raising its total planned U.S. expenditure to $165 billion, which includes five wafer fabs, two advanced packaging plants, and a major research and development center [1][11] - TSMC is also expanding its manufacturing capabilities in Japan and Germany, with plans to build 11 wafer manufacturing fabs and four advanced packaging facilities in Taiwan over the next several years [3][11] - The expansion aims to secure leadership in advanced chip manufacturing and address geopolitical concerns regarding supply chain diversification [4][11] Investment and Financial Outlook - TSMC expects a gross margin decline of 2-3% in 2025 due to the ramp-up of new fabs, with further dilution anticipated to widen to 3-4% annually in subsequent years [4][11] - The company has planned capital expenditures (CapEx) of $38-$42 billion for 2025, emphasizing the importance of execution and cost discipline to protect margins [5] - Despite the anticipated margin pressures, TSMC remains confident in sustaining a long-term gross margin above 53% [5] Competitive Landscape - TSMC leads the global foundry market, but competitors like Intel and GlobalFoundries are increasing their efforts in localized chip manufacturing [6][8] - Intel is investing $100 billion in new fabs in the U.S. and Europe under its IDM 2.0 strategy, aiming to compete directly with TSMC [7] - GlobalFoundries is expanding its capacity in the U.S., Germany, and Singapore to meet demand for automotive, IoT, and industrial chips, positioning itself as a trusted local manufacturing partner [8] Market Performance - TSMC shares have gained 12.1% year to date, outperforming the Semiconductor - Circuit Foundry industry's growth of 7.1% [9] - The forward price-to-sales ratio for TSMC is 8.62X, which is in line with the industry's average [12] - Zacks Consensus Estimate indicates TSMC's earnings growth of 31.82% for 2025 and 15.82% for 2026, with upward revisions in estimates over the past 30 days [15]

Core Insights - Taiwan Semiconductor Manufacturing Company (TSMC) is enhancing its nanosheet chip technology roadmap with N2, N2P, and A16 nodes to improve performance and efficiency, particularly for high-performance computing (HPC) and AI workloads [1][10] Group 1: Technology Advancements - The N2 logic node, TSMC's first generation of nanosheet transistor technology, offers a 10-15% speed improvement, 25-30% power improvement, and over 15% chip density gain compared to N3E, with volume production expected in the second half of 2025 [2] - N2P, an extension of the N2 family, is set to improve performance and power efficiency, while the A16 logic node is anticipated to deliver a 15-20% power improvement and an additional 7-10% chip density gain compared to N2P, both introduced in the first quarter of 2025 [4] Group 2: Customer Adoption - TSMC is securing significant customers like AMD and Apple for its N2 advanced logic node, with Apple planning to integrate these chips into future iPhones and Macs, and AMD aiming to enhance its CPUs and GPUs for competitive advantage [3] Group 3: Competitive Landscape - Competitors like Intel and GlobalFoundries are striving to catch up with TSMC, with Intel planning to launch its 2nm-based node, Intel 18A, in the second half of 2025, while GlobalFoundries focuses on specialized chips for automotive and IoT applications [6][7] Group 4: Market Position and Performance - TSMC's shares have increased by 9.7% year-to-date, outperforming the Semiconductor - Circuit Foundry industry's growth of 8.7% [8] - TSMC trades at a forward price-to-sales ratio of 9.08X, slightly above the industry average of 9.02X [12] Group 5: Earnings Estimates - The Zacks Consensus Estimate for TSMC's earnings in 2025 and 2026 indicates year-over-year growth of 30.54% and 14.80%, respectively, with recent upward revisions for 2025 estimates and downward revisions for 2026 [15]

Group 1: Stock Performance - TSMC closed at $197.61, with a +1.42% change from the previous day, outperforming the S&P 500's daily gain of 0.58% [1] - Over the past month, TSMC shares gained 10.45%, surpassing the Computer and Technology sector's gain of 7.05% and the S&P 500's gain of 4.61% [1] Group 2: Earnings Expectations - TSMC is expected to report EPS of $2.29, reflecting a 54.73% increase from the prior-year quarter, with projected net sales of $29.66 billion, up 42.47% from the year-ago period [2] - For the full year, earnings are projected at $9.19 per share and revenue at $115.46 billion, indicating changes of +30.54% and +28.17% from the preceding year [3] Group 3: Analyst Estimates and Rankings - Recent adjustments in analyst estimates for TSMC are crucial as they reflect short-term business trends, with a 2.09% rise in the Zacks Consensus EPS estimate over the past month [3][5] - TSMC currently holds a Zacks Rank of 3 (Hold), with the Zacks Rank system showing an average annual return of +25% for 1 ranked stocks since 1988 [5] Group 4: Valuation Metrics - TSMC has a Forward P/E ratio of 21.2, which is in line with the industry average [6] - The company also has a PEG ratio of 1.02, matching the average PEG ratio of the Semiconductor - Circuit Foundry industry [7] Group 5: Industry Context - The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector and holds a Zacks Industry Rank of 91, placing it in the top 37% of all industries [8]

Group 1 - TSMC's stock closed at $196.14, reflecting a decrease of -0.78% from the previous day, underperforming compared to the S&P 500, Dow, and Nasdaq indices [1] - Over the last month, TSMC's shares have increased by 20.18%, outperforming the Computer and Technology sector's gain of 11.21% and the S&P 500's gain of 7.37% [1] Group 2 - TSMC is expected to report an EPS of $2.29, which represents a 54.73% increase from the same quarter last year, with projected revenue of $29.66 billion, reflecting a 42.47% rise [2] - For the annual period, the consensus estimates anticipate earnings of $9.19 per share and revenue of $115.46 billion, indicating increases of +30.54% and +28.17% respectively from the previous year [3] Group 3 - Recent modifications to analyst estimates for TSMC indicate shifting business dynamics, with positive revisions suggesting an optimistic outlook for the company [4] - Changes in estimates are believed to correlate with upcoming stock price performance, and the Zacks Rank system provides an actionable rating based on these changes [5] Group 4 - TSMC currently holds a Zacks Rank of 3 (Hold), with a consensus EPS projection that has increased by 2.07% in the past 30 days [6] - The company has a Forward P/E ratio of 21.51, which aligns with the industry average, and a PEG ratio of 1.03, consistent with the Semiconductor - Circuit Foundry industry's average [7] Group 5 - The Semiconductor - Circuit Foundry industry ranks in the top 37% of all industries, with a Zacks Industry Rank of 90, indicating strong performance potential [8]

Company Performance - TSMC closed at $166, with a +0.45% change from the previous day, underperforming the S&P 500 which gained 0.55% [1] - Over the past month, TSMC shares have decreased by 8.46%, while the Computer and Technology sector and the S&P 500 fell by 8.88% and 6.22%, respectively [1] Upcoming Earnings - TSMC is expected to report an EPS of $2.02, reflecting a 46.38% increase from the same quarter last year, with anticipated revenue of $25.2 billion, a 33.55% rise year-over-year [2] Fiscal Year Projections - For the fiscal year, earnings are projected at $9.15 per share and revenue at $113.51 billion, indicating increases of 29.97% and 26% from the previous year [3] Analyst Estimates - Recent changes in analyst estimates for TSMC suggest a positive outlook on the company's business performance and profit potential [3][4] Zacks Rank - TSMC currently holds a Zacks Rank of 3 (Hold), with a consensus EPS projection that has decreased by 0.48% in the last 30 days [5] Valuation Metrics - TSMC has a Forward P/E ratio of 18.06, which is in line with the industry average [6] - The company has a PEG ratio of 0.57, matching the average PEG ratio of the Semiconductor - Circuit Foundry industry [7] Industry Context - The Semiconductor - Circuit Foundry industry is ranked 77 in the Zacks Industry Rank, placing it in the top 31% of over 250 industries [8]

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]