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TSMC (TSM) Beats Stock Market Upswing: What Investors Need to Know

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In the latest trading session, TSMC (TSM - Free Report) closed at $292.19, marking a +1.42% move from the previous day. This change outpaced the S&P 500's 0.01% gain on the day. Meanwhile, the Dow experienced a rise of 0.51%, and the technology-dominated Nasdaq saw a decrease of 0.28%.

Heading into today, shares of the chip company had gained 22.49% over the past month, outpacing the Computer and Technology sector's gain of 10.49% and the S&P 500's gain of 4.83%.

The investment community will be closely monitoring the performance of TSMC in its forthcoming earnings report. The company is scheduled to release its earnings on October 16, 2025. In that report, analysts expect TSMC to post earnings of $2.56 per share. This would mark year-over-year growth of 31.96%. At the same time, our most recent consensus estimate is projecting a revenue of $31.84 billion, reflecting a 35.45% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.83 per share and a revenue of $123.35 billion, indicating changes of +39.63% and +36.93%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for TSMC. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.06% rise in the Zacks Consensus EPS estimate. Currently, TSMC is carrying a Zacks Rank of #3 (Hold).

Investors should also note TSMC's current valuation metrics, including its Forward P/E ratio of 29.3. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 29.3.

One should further note that TSM currently holds a PEG ratio of 1.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. TSM's industry had an average PEG ratio of 1.37 as of yesterday's close.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 35% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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