What trends in TSM's EPS suggest for 2025 investments?

Taiwan Semiconductor Manufacturing (TSM) is poised for significant investments in 2025, with potential implications for its EPS and overall financial performance. Here are key trends and considerations: 1. **Expected EPS Growth**: TSM's EPS is projected to soar by 30% in 2025, reaching $9.20 per share. This robust growth is underpinned by the company's expansion plans, including a $100 billion investment in manufacturing plants in the United States. 2. **Revenue Projections**: TSM's revenue is expected to spike by 26% in fiscal 2025, reaching $113.63 billion. This growth is bolstered by the company's significant investments and its critical role in the global semiconductor supply chain, particularly with key customers like Apple. 3. **Future EPS Growth**: The trend of EPS growth is expected to continue in 2026, with an additional 20% increase projected. This suggests that TSM's investments are likely to yield sustained improvements in profitability over the coming years. 4. **Analyst Optimism**: Despite recent market volatility, TSM's stock has remained relatively undervalued, with a P/E ratio for fiscal year 2025 at 17. This indicates that analysts believe the company's earnings growth will justify the current valuation, making it an attractive investment for 2025. 5. **Supply Chain Strengthening**: TSM's investments in the United States are aimed at strengthening the supply chain for chip-related materials. This strategic move is likely to enhance the company's operational efficiency and resilience, which could positively impact EPS and overall financial health. In conclusion, TSM's EPS trends for 2025 suggest a strong investment case, with expected significant growth driven by strategic expansions, strong financial performance, and favorable market conditions. Investors looking to capitalize on the semiconductor industry's growth may find TSM an attractive option, given its leadership position and alignment with key industry trends.