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TSMC's Third-Quarter Earnings Boost Optimistic Stock Outlook
Taiwan Semiconductor Manufacturing Company (TSMC) has reported a strong performance in its third quarter, with total sales expected to reach almost NT$760 billion. This figure significantly exceeds Wall Street analysts' estimates of NT$748 billion, signifying a robust growth that is likely to be reflected in higher profits.
The positive outlook for TSMC's stock following the earnings report in August 2025 is cautiously optimistic, with forecasts predicting moderate price appreciation through the remainder of 2025 and beyond. Price forecasts for late 2025 range broadly from around $260 to over $300 per share. For example, one forecast predicts a price of approximately $276 by year-end 2025—a roughly 15% increase from current levels. Others suggest end-of-year prices near $301-$308.
Analyst consensus remains mostly positive, with a "Buy" rating consensus from 18 Wall Street analysts, five of whom strongly recommend buying. Their average 12-month price target is around $269.48, about 11.5% above recent prices. However, some forecasts, like one from 24/7 Wall St., suggest a more cautious scenario with a potential modest pullback to around $228 by year-end 2025, citing competitive threats to TSMC’s 2-nm process from Samsung.
Longer-term forecasts to 2026-2028 project continued growth, with some predicting TSMC shares could rise above $300 and even approach $700+ in more optimistic scenarios. However, such high forecasts vary significantly and are less consensus-driven.
The positive outlook is backed by TSMC’s leadership position in advanced semiconductor manufacturing, including its progress on cutting-edge 2-nm technology and strong customer demand amid global semiconductor shortages and AI chip demand.
It's worth noting that Warren Buffett, a star investor, recently sold TSMC stock, potentially raising questions about the stock's future. However, the current numbers from TSMC do not suggest a slowdown at the stock exchange. If TSMC maintains its current sales growth rate, it may exceed the analysts' expectations for the full year.
TSMC's September sales figures increased by 40% compared to the previous year, reaching NT$251.8 billion. The full-year outlook for TSMC may still please investors, even with Buffett's sale of the stock.
The Chip Power Index from BÖRSE ONLINE, which includes TSMC and 15 other stocks from the industry, allows for broad investment in the chip industry. TSMC's WKN is 909800.
Börsenmedien AG has concluded a cooperation agreement with the issuer of the displayed securities, granting the issuer a license to use the index. However, investors should be mindful of forecast variability and industry competition.
[1] 24/7 Wall St. [2] Seeking Alpha [3] The Motley Fool [4] The Street [5] CNBC
- The strong financial performance of TSMC in its third quarter has sparked optimism in the business world, particularly in the field of investing, as it indicates growth in the technology sector, which is crucial for personal-finance portfolios.
- Despite some analysts suggesting a potential pullback in TSMC's stock price by the end of 2025, due to competitive threats from Samsung, the majority of analysts maintain a positive outlook, with price forecasts for late 2025 ranging from around $260 to over $300 per share.
- As TSMC continues to lead in advanced semiconductor manufacturing and anticipates growth in the next few years, it remains a prime choice for investors looking to diversify their personal-finance portfolios, as reflected by the Chip Power Index, which includes TSMC alongside 15 other stocks from the industry.
