Taiwan Semiconductor (TSM) reported September revenue up 54.6% year over year and raised its full-year growth guidance to slightly above 40%, yet the stock at $445.16 fell 7.7% over the past week as chip stocks dropped on AI spending fears and Chinese competition. Nine-month revenue reached $122.12 billion, up 41.1%, with Q2 EPS of $4.31 and a 67.7% gross margin, while the shares trade at about 21x forward earnings. Of the 21 analysts covering the stock, the average target of $555.01 implies 24.7% upside. The article warns that the 2nm ramp could cut gross margin by 3 to 4 percentage points in the second half, and that the 2026 capital budget has been raised to $60 billion to $64 billion. Third-quarter results and fourth-quarter guidance will show whether margins hold up.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Taiwan Semiconductor’s Top Line Growth is Starting to Raise Eyebrows
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