Key Stats for TSMC Stock
- Price change for TSMC stock in last 6 months: 16%
- $TSM Stock Price as of Oct. 15: $75
- 52-Week High: $81
- $TSM Stock Price Target: $103
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What Happened?
Taiwan Semiconductor Manufacturing (TSM) posted a record third quarter on Thursday, beating estimates and driven by strong demand for AI chips. It was the sixth straight quarter of record net profit.
- Revenue was NT$1.49 trillion, ahead of the NT$1.47 trillion expected.
- Net income was NT$763.1 billion, up 68.7% from last year.
- Operating margin was 58.7%, above the top of the company’s guidance.
TSMC expects Q4 revenue of $52.3 billion to $54.3 billion. At the midpoint, that is up 14% from Q3 and 58% from a year ago.
Full-year revenue growth is now expected at around 44% in U.S. dollars.
Here is where the sales came from:
- 3-nanometer chips were the biggest piece at 33% of wafer revenue.
- High-performance computing made up 68% of revenue.
- Smartphones made up 21%.
- Automotive grew fastest, up 23% from Q2.
Free cash flow jumped to NT$476.56 billion, from NT$139.38 billion a year ago.
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What the Market Is Telling Us About TSMC Stock
The message is simple: demand is running ahead of supply.
CEO C.C. Wei said demand still exceeds TSMC’s production capacity and emphasized that the company is working hard to narrow the gap.
TSMC is spending heavily to keep up and plans to spend $60 billion to $64 billion on capital this year. It expects spending from 2026 to 2028 to be much higher than the last three years.
Expansion in the U.S. is also moving. The second Arizona fab is being built, and tools are being installed. Production should start in Q3 2027, slightly ahead of schedule.
TSM stock faces certain risks.
Gross margin slipped 1.3 percentage points to 66.4% as it ramps up its new 2-nanometer chips. Overseas fabs also cost more to run, and TSMC expects that drag to grow to 3 to 4 points in the next few years.
Management also said consumer and price-sensitive markets are under pressure from higher component costs. It is being careful in its 2027 planning.
Still, the numbers show a company with strong pricing power and a full order book. For now, TSM stock is tied closely to the AI buildout.
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So what is TSMC stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
