Expected EPS of $2.76, marking a 23.2% increase from the same quarter last year.Projected revenue range of $32.2 billion to $33.4 billion, reflecting a 21.4% year-over-year increase.Valuation metrics indicate attractive investment potential, with a forward P/E ratio below 20 for fiscal year 2027.Taiwan Semiconductor Manufacturing Company (NYSE: TSM) is a leading player in the semiconductor industry, known for its advanced process technologies and strong market position. As TSM prepares to release its quarte ...

Key Takeaways TSM is set to report Q4 results Jan. 15, with EPS estimated at $2.76, up 23.2% year over year.TSM is benefiting from AI-led demand and leadership in 7nm, 5nm and 3nm process technologies.TSM faces margin pressure from overseas expansion and potential revenue impact from U.S.-China tensions.Taiwan Semiconductor Manufacturing Company Ltd. (TSM) is scheduled to report fourth-quarter 2025 results before the market opens on Jan. 15.The Zacks Consensus Estimate for fourth-quarter earnings is pegged ...

Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) is experiencing significant growth driven by strong demand in AI and high-performance computing, with its stock price reflecting high investor confidence and expectations for future performance [2][5]. Company Overview - TSMC, founded in 1987, is the world's leading dedicated semiconductor foundry, with a market capitalization of approximately $1.6 trillion [3]. - The company operates multiple fabs in Taiwan and internationally, including in the U.S. and China, providing advanced logic, specialty, and packaging services to a diverse global customer base [3]. Financial Performance - TSMC reported Q2 2025 net revenue of $30.1 billion, a 44.4% year-over-year increase, and a net income of $12.8 billion, reflecting a 60.7% year-over-year growth [8]. - The company's earnings per share (EPS) for Q2 was $2.47, up 60.7% from the same quarter the previous year [8]. - Profitability metrics include a gross margin of 58.6%, an operating margin of 49.6%, and a net profit margin of 42.7% [9]. Market Trends and Expectations - TSMC's revenue growth is primarily driven by demand for advanced semiconductor technologies, particularly in the 3nm and 5nm process nodes, which accounted for 74% of wafer revenue [9]. - The company is expected to report consolidated revenue between $31.8 billion and $33 billion for Q3 2025, with a projected gross margin of 55.5% to 57.5% [13]. Investment Sentiment - Analysts are optimistic about TSMC's future, with Wall Street projecting a 33.2% increase in revenue to $31.5 billion and a 33.5% growth in EPS to $2.59 [14]. - Barclays and Susquehanna have raised their price targets for TSM, reflecting confidence in the company's role in the AI sector and advanced semiconductor manufacturing [15][16]. - The stock is currently trading above its mean price target of $298.38, with potential for further gains based on analysts' high targets [17].

Financial Performance - TSMC's net revenue reached NT$93379 billion, a 113% increase compared to 1Q25 and a 386% increase compared to 2Q24[6] - Net revenue in US dollars was $3007 billion, up 178% from 1Q25 and 444% from 2Q24[6] - Gross margin was 586%, slightly down 02 percentage points from 1Q25 but up 4+5 percentage points from 2Q24[6] - Operating margin was 496%, up 11 percentage points from 1Q25 and 71 percentage points from 2Q24[6] - Net income attributable to shareholders of the parent company was NT$39827 billion, up 102% from 1Q25 and 607% from 2Q24[6] Revenue Breakdown - 5nm technology contributed 36% of revenue[8] - 3nm technology contributed 24% of revenue[8] - 7nm technology contributed 14% of revenue[8] - HPC platform accounted for 60% of revenue[13] - Smartphone platform accounted for 27% of revenue[13] Growth Rate by Platform (QoQ) - HPC platform grew by 30%[15] - Smartphone platform grew by 6%[15] - IoT platform grew by 14%[15] 3Q25 Guidance - Revenue is expected to be between US$318 billion and US$330 billion[21] - Gross profit margin is projected to be between 555% and 575%[21] - Operating profit margin is expected to be between 455% and 475%[21]