Core Insights - Taiwan Semiconductor Manufacturing Company (TSMC) is experiencing significant growth, with a 31.4% increase in September sales compared to the previous year, and a year-to-date run-rate of +36.4% [1][3] - TSMC's trailing 12-month revenue has more than doubled to nearly $105 billion, driven largely by the explosive growth of NVIDIA, which has seen its sales grow tenfold in the same period [3][17] - TSMC holds approximately 67% of the global foundry market and nearly 90% of advanced chip production, making it a critical player in the AI economy [17][19] Financial Performance - Analysts have raised TSMC's EPS estimates for 2025 from $9.28 to $9.77, indicating a projected annual growth of 39% [9][23] - Sales projections for TSMC are expected to exceed $120 billion, reflecting a 34% increase [9][23] - Next year's EPS estimate has increased by 9% from $10.34 to $11.29, with profit growth anticipated to be over 15% [24] Market Position and Demand - TSMC's 5nm and 3nm nodes are crucial for high-performance AI accelerators and are widely adopted in flagship smartphones and 5G infrastructure [6][19] - The company plans to begin production of its 2nm node by late 2025, promising significant improvements in power efficiency and performance [21][20] - TSMC's advanced manufacturing capabilities are essential for the infrastructure supporting the transition to an AI economy, with total datacenter capex projected to grow from nearly $600 billion this year to over $1 trillion by 2028 [12][13] Strategic Developments - TSMC is expanding its manufacturing footprint with the construction of a third facility in Phoenix, Arizona, as part of a broader investment strategy in high-tech manufacturing [18][19] - The company is positioned to benefit from the increasing demand for AI technologies, as evidenced by the close partnership with NVIDIA, which relies on TSMC for its advanced chip production [22][17]

Given the recent volatility the stock has seen, let's take a closer look at the semiconductor company's most recent earnings results and guidance to see what investors should do with their shares. Share prices of Arm Holdings (ARM 1.59%) initially sank following the cautious outlook it issued with its fiscal 2025 fourth-quarter results on Wednesday, May 7, but the stock has rallied back this week following the news over the weekend that the U.S.-China trade war was cooling down. The stock is now trading up ...