TSMC Reports 41% YoY Sales Growth in Q3 with 59.5% Gross Margin
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Significant Sales Growth: TSMC reported a 41% year-over-year sales increase in Q3 2025, primarily driven by demand from smartphones and autonomous vehicles, highlighting the company's robust growth potential in the semiconductor industry.
- Improved Profitability: The company's gross margin reached 59.5% in Q3, up from 57.8% last year, while operating margin increased from 47.5% to 50.6%, indicating enhanced cost control and operational efficiency.
- Investor Attraction: With a current P/E ratio of 31 and strong AI market trends, TSMC's stock is expected to rise further in 2026, drawing increased investor interest.
- Solid Market Position: As a leading global semiconductor foundry, TSMC not only supplies chips to various tech companies but also strengthens its market competitiveness through a diversified customer base, ensuring sustained growth in the future.
Analyst Views on TSM
Wall Street analysts forecast TSM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSM is 348.25 USD with a low forecast of 290.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
8 Buy
1 Hold
0 Sell
Strong Buy
Current: 299.580
Low
290.00
Averages
348.25
High
400.00
Current: 299.580
Low
290.00
Averages
348.25
High
400.00
About TSM
Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based company mainly engaged in the provision of integrated circuit manufacturing services. The integrated circuit manufacturing services include process technology, special process technology, design ecosystem support, mask technology, 3DFabricTM advanced packaging and silicon stacking technology services. The Company has completed the transfer and mass production of 5nm technology, and is engaged in the research and development of 3nm process technology and 2nm process technology. The product application range covers the entire electronic application industry, including personal computers and peripheral products, information application products, wired and wireless communication system products, servers and data centers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
