To The Moon

Earnings Calendar (14Jul25)

Q2/2025 earnings start strong this week. There are notable banking earnings that include JP Morgan, Citi, Wells Fargo, BlackRock, State Street, Morgan Stanley, Bank of America, American Express and Goldman Sachs. The other earnings of interest are United, TSMC, Netflix, Pepsico, Abbott and Johnson & Johnson.

Let us look into the recent performance of TSMC

For TSMC, the analysts’ sentiment is recommending a “Strong Buy”. With a price target of $232.43, this suggests an upside of 0.88%.

For technical analysis, the recommendation is also a “Strong Buy”.

The stock price has gained 24.4% from a year ago.

Observations:

• The revenue of the business grew from $25.7 billion in 2015 to $88.8 billion in 2024.

• The gross profit of the business grew from $12.5 billion in 2015 to $49.8 billion in 2024.

• The operating profit grew from $9.8 billion in 2015 to $40.5 billion in 2024.

• The 10-year median margin of free cash flow (FCF) stands at a strong 23.5%.

• With a debt/assets value of 0.1, the business has low liability and a strong asset base.

Overall Assessment

Over the past 10 years, TSMC has demonstrated exceptional growth and stability in revenue and EPS, driven by its leadership in the semiconductor foundry market. Operating profits grew with margins expanding to 45.7%, reflecting financial strength. The company has consistently raised dividends, and its P/E ratio of 29.6 suggests a premium valuation justified by its market dominance. Strong FCF growth (20.2% CAGR), high gross margin (56.1% in 2024), and low debt (debt/equity 0.2) underscore its competitive advantages, including technological leadership in advanced nodes (e.g., 3nm), unmatched scale, and a critical role in the global tech supply chain. Despite a revenue dip in 2023, the 2024 recovery highlights its ability to navigate industry cycles effectively, positioning it well for continued success as of July 2025.

The forecast of the TSMC’s EPS and Revenue are $2.36 and $29.93B respectively.

Given the above info, TSMC can be a good addition to our portfolio, at the right price. I will prefer to monitor closely for now.

@TigerStars

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