Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 10 Dec, 25 | TSM | Buy | USD 303.41 | USD 320.0 | USD 340.0 | 36 days | Closed |
12.98%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides complementary metal oxide silicon wafer fabrication processes to manufacture logic, mixed-signal, radio frequency, and embedded memory semiconductors. The company also offers customer support and engineering services, as well as manufactures masks. Its products are used in high performance computing, smartphone, Internet of things, automotive, and digital consumer electronics. The company was incorporated in 1987 and is headquartered in Hsinchu City, Taiwan.
Strong Revenue Growth: Net revenue increased from NT$759.69 billion in Q3FY24 to NT$989.92 billion in Q3FY25, an increase of 30.3%
Higher Profitability: Net income rose from NT$325.26 billion in Q3FY24 to NT$452.30 billion in Q3FY25, up 39.1%, while EPS increased from NT$12.54 (Q3FY24) to NT$17.44 (Q3FY25), up 39.0%
Higher Operating Expenses: Operating expenses increased from NT$79.08 billion in Q3FY24 to NT$87.76 billion in Q3FY25, up 11.0%
Lower Contribution from Certain Platforms: Smartphone declined from 34% in Q3FY24 to 30% in Q3FY25, while IoT declined from 7% in Q3FY24 to 5% in Q3FY25—a visible mix shift even as overall revenue grew
TSMC faces material risks from advanced-node cost pressures, overseas fab dilution, geopolitical exposure (particularly US-China), and AI demand fluctuation, all of which could impact capacity utilization and long-term margins
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 303.41 | 270.0 | 320.0 | 340.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
TSMC remains the world’s leading pure-play semiconductor foundry with unmatched scale in advanced nodes, evidenced by 74% of wafer revenue coming from 7nm and below in Q3FY25. The quarter demonstrates the company’s deep technological leadership, with 3nm (23%) and 5nm (37%) together forming the core of revenue mix, clearly supporting high-performance computing (HPC) and AI end-market growth.
Supported by strong demand for leading-edge process technologies, revenue grew 30.3% year-on-year, while net income grew 39.1% and EPS increased 39.0% in Q3FY25. Margin expansion (gross margin 59.5% and operating margin 50.6%) reflects high utilization and operational leverage, despite FX and overseas fab dilution pressures.
Structurally, surging AI and data-center-related demand is increasingly visible, with management highlighting accelerating AI megatrend capacity requirements and strong visibility into future demand through close planning with customers and their customers. The company is expanding global footprint (US, Japan, Germany) and preparing next-generation 2nm and A16 technologies, positioning the firm for continued leadership and long-duration growth.
TSMC remains financially robust cash & marketable securities of NT$2.75 trillion and net cash reserves of NT$1.76 trillion in Q3FY25 support ongoing large-scale capex investment while maintaining dividends. Overall, TSMC is a unique long-term beneficiary of AI acceleration, sovereign cloud adoption, and continued migration toward leading-edge logic nodes.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Taiwan Semiconductor Manufacturing Company Ltd (NYSE: TSM) at the closing market price of USD 303.41, as on Dec 09, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Semiconductors
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| TSM Taiwan Semiconductor Manufacturing |
-5.68 1.66% | 335.68 | 19.45 | 15.92 | 0.24 | 4.85 | 0.22 | 0.30 |
| NVDA NVIDIA Corporation |
-5.445 2.93% | 180.16 | 62.11 | 36.76 | 36.43 | 51.65 | 36.19 | 61.96 |
| AVGO Broadcom Inc |
-12.365 3.73% | 318.75 | 139.68 | 28.99 | 17.14 | 12.73 | 19.13 | 40.92 |
| AMD Advanced Micro Devices Inc |
-2.32 0.94% | 243.95 | 244.65 | 48.78 | 11.64 | 4.72 | 11.51 | 62.93 |
| QCOM Qualcomm Incorporated |
-5.385 3.53% | 147.24 | 28.37 | 17.95 | 5.27 | 8.29 | 5.36 | 18.39 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on December 10, 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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