Can TSM's Q1 2025 EPS forecast sustain its growth streak?

**TSM's Q1 2025 EPS forecast may face challenges in sustaining its growth streak.** Here's why: 1. **Recent Performance**: TSM's EPS has shown a positive trend, with a reported EPS of $1.38 for Q4 2024, compared to $1.06 for Q4 2023. However, the growth rate is not as strong as expected, with a negative growth rate of -0.15%. |code|Ticker|Name|Date|Diluted EPS YoY|market_code| |---|---|---|---|---|---| |TSM|TSM.N|TSMC|2022 Q1|44.3737794536854|169| |TSM|TSM.N|TSMC|2022 Q2|65.59047748683649|169| |TSM|TSM.N|TSMC|2022 Q3|57.33540818067795|169| |TSM|TSM.N|TSMC|2022 Q4|60.68356772734636|169| |TSM|TSM.N|TSMC|2023 Q1|-4.18117716566632|169| |TSM|TSM.N|TSMC|2023 Q2|-26.752268598126616|169| |TSM|TSM.N|TSMC|2023 Q3|-25.910813545874422|169| |TSM|TSM.N|TSMC|2023 Q4|-18.991363504145916|169| |TSM|TSM.N|TSMC|2024 Q1|4.0716408772263|169| |TSM|TSM.N|TSMC|2024 Q2|30.87109585673914|169| 2. **Analyst Expectations**: Analysts have set an average price target of $235 for TSM, indicating a "Strong Buy" consensus. This suggests that while the stock has potential, the EPS forecast for Q1 2025 may not meet the high expectations set by analysts. 3. **Market Conditions**: The semiconductor industry is highly dependent on market conditions and technological advancements. TSM's growth has been driven by strong demand for chips, particularly in the artificial intelligence and 5G sectors. However, the impact of market fluctuations and the potential slowdown in AI and 5G adoption could affect TSM's EPS growth. 4. **Strategic Investments**: TSM's investment in the U.S. is a positive sign for long-term growth. However, the immediate impact of these investments on EPS may not be significant, and the company may face short-term challenges in sustaining its growth rate. 5. **Natural Disasters**: The earthquake in Taiwan in January 2025 has affected TSM's operations and revenue forecast for Q1 2025. This natural disaster could impact the company's production capacity and, consequently, its EPS. 6. **Profit Surge in Q4 2024**: TSM reported an all-time high quarterly net profit for Q4 2024, driven by unprecedented demand for chips. This surge in profit may not be easily sustained in the following quarters, including Q1 2025. In conclusion, while TSM has shown positive growth trends and has potential for further expansion, the Q1 2025 EPS forecast may face challenges due to market conditions, strategic investments, and natural disasters. The company will need to navigate these factors carefully to sustain its growth streak.