Strong sales growth and earnings spike expected for Taiwan Semiconductor, but caution warranted with declining estimates

From Zacks Investment Research: 2025-01-15 19:50:30

Wall Street awaits Taiwan Semiconductor’s (TSM) Q4 results on January 16, with expectations of a 34% sales increase to $26.38 billion and a 50% EPS spike to $2.16. Total sales are projected to rise 29% in FY24 and 25% in FY25, with annual earnings expected to jump 33% to $6.92 per share. TSM’s stock has surged over 100% in the past year, outperforming Qualcomm and nearing Nvidia’s gains. Trading at $200 a share, TSM has a 22.6X forward earnings multiple. Despite its strong long-term growth potential, TSM’s declining earnings estimate revisions warrant caution, with a Zacks Rank #4 (Sell) currently assigned.



Read more at Zacks Investment Research: Buy, Sell, or Hold Taiwan Semiconductor (TSM) Stock as Q4 Earnings Approach? – January 15, 2025