Taiwan Semiconductor (TSMC) will announce Q3 2025 earnings on Oct. 16. It dominates semiconductor production, crucial for AI advancements. Stock at all-time high, but growth alone doesn’t guarantee buy. Is it wise to invest before earnings? Analysts suggest 10 best stocks instead.

TSMC’s market share exceeds 70%, a rise from 67% in Q2 2025. AI CAGR forecasted at 32% through 2033. Revenue surged by 40% to $56 billion in H1 2025. Q3 revenue expected at $31.8-33 billion, a 38% rise at midpoint. Company has consistently beat revenue estimates.

Challenges include meeting demand, with high CapEx and geopolitical tensions in Taiwan. Warren Buffett sold TSMC stake due to geopolitical risks. TSMC’s low P/E ratio compared to key clients like Apple and Nvidia raises concerns. Stock may face potential premium pricing risks.

Uncertain if investors should buy TSMC stock before earnings. Risk-averse investors may hesitate due to rising P/E ratio. Dollar-cost averaging strategy could mitigate risk. TSMC likely to maintain bull trend amid high demand for AI chips. Timing less crucial than long-term investment.

Considerations before investing in TSMC. Motley Fool’s top 10 stocks exclude TSMC. Historical returns with other recommended stocks are impressive. Stock Advisor’s average return is 1,058%, outperforming S&P 500. Join to access latest top 10 list. Disclosure: Author has positions in Berkshire Hathaway.

Read more at CNBC: Should Investors Buy Taiwan Semiconductor Stock Before Earnings?