Positive

From Nasdaq: 2025-03-03 15:04:00

Taiwan Semiconductor TSM plans to invest $100 billion in U.S. manufacturing plants to strengthen chip supply chain, with Apple as its largest customer. Revenue expected to spike 26% in FY25 to $113.63 billion, with EPS growth of 30%. Despite recent stock dip, TSM remains a solid investment at 19.6X forward earnings multiple.

TSM’s revenue is expected to rise to over $135 billion in FY26, with EPS projected to increase by 20%. TSM is a key supplier to U.S. chip manufacturers like Nvidia and AMD, with Apple contributing a quarter of its revenue in 2023. Estimates show a 4% and 1% increase in FY25 and FY26 EPS, respectively.

Amid market volatility, TSM stock is down 9% year-to-date but up 30% in the last year. Trading at $178, TSM shares have a forward earnings multiple of 19.6X, below the S&P 500’s 22.4X. With a Zacks Rank #2 (Buy), TSM’s expansion plans in the U.S. signal long-term growth potential.



Read more at Nasdaq: Buy Taiwan Semiconductor (TSM) Stock for Expansion Plans in the U.S.?