Taiwan Semiconductor Manufacturing Company (TSMC) reported strong growth in Q3, driven by demand for advanced chips in AI, HPC, and smartphones. Stock is up 52% YTD but down from its high. Revenue surged 40.8% to $33.1B, with N3 and N5 processes leading. 74% of wafer revenue from advanced nodes.

AI demand is reshaping TSMC’s revenue mix, with HPC stable at 57% and smartphones up 19% quarter over quarter. Other markets like IoT and automotive grew, but TCE declined. CEO Wei sees AI driving growth through 2025 and beyond, with increasing need for advanced nodes.

TSMC is accelerating manufacturing globally to meet rising AI and semiconductor demand. Expanding in the U.S. and Europe, with investments in 2nm tech. Capex reduced to $40-42B by 2025, mainly for advanced tech. Strong balance sheet with $90B in cash. Q4 revenue estimated at $32.2B-$33.4B.

TSMC is poised for growth in 2026 with new 2nm tech and rapid packaging expansion. Analysts predict 40% revenue growth by 2025 and 46.3% increase in profitability. Stock trading at 24x forward earnings. Wall Street bullish, with upside potential of 33.4% to $400 target price.

TSMC’s goal is to be the most efficient chip maker globally. With scale, innovation, and capacity planning, it’s set to benefit from AI, HPC, and next-gen computing growth. Considered a strong semiconductor stock for long-term hold. No positions in mentioned securities. Information for informational purposes.

Read more at Yahoo Finance: Is TSMC Stock a Buy Now?