Zacks.com users have recently been watching TSMC (TSM) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
TSM's quarterly revenues surge 40.8% as AI chip demand soars, driving record 3nm and 5nm orders and fueling a global expansion push.
Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM) shares were little changed on Tuesday, suggesting investors remain largely unfazed by signs of slower growth at the world's leading chipmaker. TSMC reported a 16.9% year-on-year increase in October sales, its weakest monthly growth since February 2024 but broadly in line with analyst expectations.
In-the-know traders see Taiwan Semiconductor Manufacturing (NYSE:TSM) as global powerhouse among chipmakers.
Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM) (TSMC) on Monday announced that its revenue in October rose 16.9% year over year to T$367.47 billion (US$11.86 billion), a new monthly record for the company, while also improving 11% from September. The results, though, marked the slowest pace of growth for TSMC since February 2024.
TSMC reported its slowest pace of monthly sales growth since February 2024.
Taiwan Semiconductor's AI-fueled growth keeps it near record highs, but expansion costs suggest a cautious hold.
The artificial intelligence (AI) boom has unleashed a historic, seemingly insatiable demand for advanced computing power. At the epicenter of this technological revolution stands one company: Taiwan Semiconductor Manufacturing NYSE: TSM (TSMC), the critical manufacturing partner for nearly every major AI chip designer.
TSM's bold 2nm expansion may squeeze margins in the short term but could secure long-term gains as AI chip demand accelerates.
Taiwan Semiconductor's bold global fab expansion fuels soaring AI chip demand and supply-chain resilience, even as margins face short-term pressure.
Taiwan Semiconductor (TSM) remains a buy after a strong rally, with 50% of my long position closed to lock in gains. TSMC delivered robust Q3 results, with net income up 39.1% YoY and revenue growth driven by high-performance computing and AI demand. Despite premium valuations and potential for multiple compression, TSM's superior margins and capital returns justify its current pricing versus peers.
Taiwan Semiconductor delivered strong Q3 results, with 41% revenue growth, robust margins, and continued dominance in advanced chip manufacturing. TSM benefits from surging AI and HPC demand, maintaining a technological edge and deep relationships with key customers like NVDA, AAPL, and AMD. Despite concerns over AI exuberance, potential cyclicality, and geopolitical risks, TSM's financial strength and global presence support long-term resilience.