Taiwan Semiconductor Manufacturing Company Limited · TSM · FY2025 Q1 · Calendar Q2 2025

TSMC: AI demand supports expansion, while overseas costs weigh

The supplied analysis supports a constructive operating thesis: resilient AI and HPC demand can support growth, but the benefits depend on execution across advanced packaging and leading-edge capacity while overseas expansion, tariffs, and geopolitics pressure margins and demand.

Reported Before market openNYSETechnology $2170.59B market cap
80quality score

Earnings scorecard

Reported versus consensus
Reported EPS — Consensus $2.02
EPS surprise — Reported versus consensus
Reported revenue — Consensus $834.33B
Revenue surprise — Reported versus consensus

Market reaction

prior-close to event-session close
Stock move +0.0% Event window
SPY move +0.1% Same window
Abnormal move -0.1% Stock minus SPY
Volume 1.3× Versus trailing sessions
Subsequent drift +28.0% Up to 20 sessions
TSMSPY benchmark

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Transcript intelligence

What changed

Relative to the prior-quarter analysis, the supplied current analysis placed greater emphasis on the additional U.S. investment, Arizona’s role in 2-nanometer capacity, tariff risk, and expected margin dilution from overseas expansion; the growth case remained centered on AI, HPC, and advanced packaging.

Guidance delta

Guidance sentiment was maintained; the supplied analysis highlighted strong sequential Q2 revenue growth and an operating-margin outlook of 47%–49%.

Key takeaways

  • AI and HPC demand remained the central growth drivers in the supplied analysis.
  • Management planned to expand CoWoS capacity and advance 2-nanometer and related technology ramps.
  • The analysis highlighted a $100 billion additional U.S. investment and a larger Arizona footprint.
  • Overseas expansion and inflation were identified as sources of margin dilution.
  • Tariffs, trade restrictions, geopolitics, and China exposure remained material risks.

Management priorities

  • Expand advanced packaging capacity
  • Ramp 2-nanometer production and related process extensions
  • Build out Arizona capacity, packaging, and research facilities
  • Continue specialty-fab projects in Japan and Germany
  • Support AI-accelerator and high-performance-computing demand

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Earnings History

Estimate Beat Miss Match
TSM EPS earnings history estimate and actual scatter chart 9 reported fiscal quarters and 4 future estimate-only quarters. Q1 '24 estimate $1.32 Q1 '24 actual $1.39, beat Q2 '24 estimate $1.37 Q2 '24 actual $1.48, beat Q2 '25 estimate $2.38 Q2 '25 actual $2.50, beat Q3 '25 estimate $2.63 Q3 '25 actual $2.92, beat Q4 '25 estimate $2.90 Q4 '25 actual $3.09, beat Q1 '26 estimate $3.31 Q1 '26 actual $3.49, beat Q2 '26 estimate $3.87 Q2 '26 actual $4.31, beat Q3 '26 estimate $4.45 Q3 '26 actual $4.60, beat Q4 '26 estimate $161.10 Q1 '27 estimate $163.10 Q2 '27 estimate $174.84 Q3 '27 estimate $194.44
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Analyst Consensus ?

ConsensusBuy24 ratings
Bullish1875.0%
Neutral625.0%
Bearish00.0%

1 unmapped firm rating excluded from the percentages.

Analyst 52W Price Targets

$418.51Previous close
$125Low
$521.58Average
$700High

Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Oct 26, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
DA Davidson Buy BuyMaintainOct 16, 2026
Barclays Overweight OverweightMaintainOct 16, 2026
Needham Buy BuyMaintainOct 15, 2026
Bernstein Outperform OutperformMaintainAug 11, 2026
TD Cowen Hold HoldMaintainJul 17, 2026
Susquehanna Positive PositiveMaintainJul 16, 2026
B of A Securities Buy BuyMaintainJun 24, 2026
Freedom Broker Buy BuyMaintainApr 7, 2026
Erste Group Buy HoldUpgradeApr 24, 2023
Goldman Sachs Buy BuyMaintainOct 13, 2022
Atlantic Equities Overweight NeutralUpgradeJan 13, 2022
Cowen & Co. Perform Market PerformMaintainOct 11, 2021
Argus Research Buy BuyMaintainJun 22, 2021
New Street Buy BuyMaintainAug 28, 2020
Macquarie Outperform NeutralUpgradeJul 24, 2020
China Renaissance Buy HoldUpgradeDec 17, 2019
Morgan Stanley Overweight Equal WeightUpgradeSep 5, 2019
CLSA Buy UnderperformUpgradeJul 19, 2019
HSBC Buy BuyMaintainJan 19, 2018
Pacific Crest Sector Weight UnderweightUpgradeOct 14, 2016
Nomura Neutral BuyDowngradeJul 12, 2016
JP Morgan Neutral OverweightDowngradeJul 12, 2016
Citigroup Neutral NeutralMaintainMar 26, 2015
Credit Suisse Neutral BuyDowngradeJan 8, 2015
Bank of America Buy NeutralUpgradeDec 8, 2014
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Named analyst price targets

Upside is calculated against the persisted previous close $418.51. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
BarclaysSimon Coles$670$422.25 +60.1%Oct 16, 2026
NeedhamCharles Shi$560$430 +33.8%Oct 15, 2026
Stifel NicolausAnalyst unavailable$515$414 +23.1%Sep 1, 2026
BernsteinMark Li$554$423.66 +32.4%Aug 11, 2026
NeedhamCharles Shi$530$403.41 +26.6%Jul 27, 2026
D.A. DavidsonAnalyst unavailable$500$409.74 +19.5%Jul 17, 2026
BarclaysAnalyst unavailable$650$409.74 +55.3%Jul 17, 2026
SusquehannaAnalyst unavailable$600$419.48 +43.4%Jul 16, 2026
BarclaysSimon Coles$625$432.35 +49.3%Jun 29, 2026
SusquehannaMehdi Hosseini$575$468.86 +37.4%Jun 22, 2026
JefferiesAnalyst unavailable$700$441.4 +67.3%Jun 16, 2026
NeedhamAnalyst unavailable$480$368.13 +14.7%Apr 16, 2026
D.A. DavidsonAnalyst unavailable$450$368.1 +7.5%Feb 12, 2026
BarclaysAnalyst unavailable$450$341.64 +7.5%Jan 16, 2026
NeedhamAnalyst unavailable$410$349.35 -2.0%Jan 15, 2026
UBSAnalyst unavailable$330$294.72 -21.1%Dec 7, 2025
BarclaysSimon Coles$355$299.84 -15.2%Oct 17, 2025
NeedhamAnalyst unavailable$360$303.26 -14.0%Oct 16, 2025
SusquehannaAnalyst unavailable$400$299.88 -4.4%Oct 10, 2025
BarclaysAnalyst unavailable$330$304.52 -21.1%Oct 9, 2025
BarclaysAnalyst unavailable$325$262.06 -22.3%Sep 16, 2025
SusquehannaMehdi Hosseini$265$228.67 -36.7%Jul 14, 2025
BarclaysSimon Coles$215$147.86 -48.6%Apr 21, 2025
NeedhamCharles Shi$210$165.77 -49.8%Jul 19, 2024
BernsteinMark Li$200$179.69 -52.2%Jun 20, 2024
SusquehannaMehdi Hosseini$200$172.51 -52.2%Jun 17, 2024
NeedhamCharles Shi$168$145.4 -59.9%Apr 10, 2024
SusquehannaMehdi Hosseini$180$141.49 -57.0%Apr 2, 2024
SusquehannaMehdi Hosseini$135$98.07 -67.7%Jul 20, 2023
NeedhamCharles Shi$118$99.82 -71.8%Jun 1, 2023
NeedhamCharles Shi$110$79.4 -73.7%Sep 14, 2022
SusquehannaMehdi Hosseini$88$86.3 -79.0%Jul 25, 2022
SusquehannaMehdi Hosseini$100$87.11 -76.1%Jun 14, 2022
Cowen & Co.Krish Sankar$125$140.66 -70.1%Jan 16, 2022
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Company context

Snapshot as of publication

Taiwan Semiconductor Manufacturing Company Limited (TSMC), along with its affiliated entities, operates globally in the semiconductor industry, specializing in the manufacturing, packaging, meticulous testing, and worldwide distribution of integrated circuits and other crucial semiconductor components. Its expansive international presence covers key markets such as Taiwan, China, Europe, the Middle East, Africa, Japan, and the United States. The company is renowned for its diverse array of wafer fabrication processes.…

Historical context

All TSM earnings

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2025-04-03T00:02:43.581688+00:00
  3. Polygon adjusted daily market bars · 2026-10-26T08:50:41.243491+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-26T08:50:41.240699+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-10-26. For educational purposes only; not investment advice.