Taiwan Semiconductor reports stellar Q4 earnings with revenue and income surge

From Nasdaq: 2025-01-16 12:49:00

Taiwan Semiconductor (TSM) reports a stellar Q4, with a 38.8% revenue increase and 57% surge in net income, driven by demand for cutting-edge 3nm and 5nm chips. TSM’s role in AI revolution highlighted, powering tech giants like Nvidia and Apple.

TSM’s leadership in innovation solidifies its position in AI and high-performance computing, with 74% of revenue from advanced technologies. Plans to ramp up production of 3nm and upcoming 2nm nodes to maintain edge. Geopolitical challenges navigated with open communication and overseas fabs expansion in Arizona and Japan.

TSM trades at an attractive valuation of 23.5x forward earnings, with a PEG ratio of 0.75, signaling a discount relative to its 31.2% EPS growth rate. Despite low Zacks Rank, TSM’s pivotal role in tech industry and AI boom justify a premium, making it a compelling investment opportunity.

Investors cautious due to TSM’s low Zacks Rank reflecting downward earnings revisions. Long-term growth potential intact, driven by AI boom and global demand for semiconductors. Monitoring earnings revisions and market conditions key for informed investment decision. Patience and timing crucial for maximizing returns.



Read more at Nasdaq: Taiwan Semiconductor: The Backbone of AI Surges on Earnings Beat