Taiwan Semiconductor reported third-quarter revenue up 41% year over year to $46.7 billion, with net profit margin rising to 51.1% and EPS up 57% to $4.60. It guided fourth-quarter revenue to a midpoint of $53.3 billion, a 58% increase, and management expects AI-related revenue to grow faster than the mid-to-high 50% CAGR it previously estimated through 2029. The author cites AI data center demand, the early ramp of 2-nanometer chips, and reported price increases of 5% to 10% for advanced nodes next year. Assuming estimated EPS of $29.82 in 2028 and a 43% increase in each of 2029 and 2030 to $60.98, the author says a 20 times earnings multiple would imply a share price of about $1,219, a potential jump of nearly 3x.
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