Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) slightly exceeded revenue expectations in November, Wade Bush is optimistic about AI and advanced manufacturing processes driving profits.

Wade Bush Securities pointed out that Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) revenue in November has exceeded market expectations slightly. Analyst Matt Bryson said that the appreciation of the US dollar has brought additional benefits: sales revenue and gross profit margin translated into New Taiwan dollars have also increased, making the company's performance in local currency terms surpass expectations by a larger margin compared to in US dollars. Bryson maintained a "outperform" rating for Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, with a target price set at 1700 New Taiwan dollars. He further pointed out that, based on recent communication, the seasonal impact on AI data center spending is very limited, almost non-existent. "Therefore, our profit model for Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR in the fourth quarter may be too conservative at the moment. As we enter 2026, the company has two additional drivers: continued price increases and a further shift towards more advanced new processes (including 2-nanometer wafers), both of which will bring higher upside potential than currently forecasted," Bryson added. It is understood that Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR announced its latest performance report for November 2025 on December 10, 2025. The main data shows that although revenue has decreased slightly month-on-month, it still achieved strong growth year-on-year. The financial report shows that Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's revenue in November increased by 24.5% year-on-year, reaching approximately 343.61 billion New Taiwan dollars, but decreased by 6.5% from October. The company, which produces chips for top global tech companies such as Apple Inc., NVIDIA Corporation, and AMD, reached a sales figure of around 367.473 billion New Taiwan dollars in October this year. Cumulative revenue from January to November this year reached 3.474 trillion New Taiwan dollars, an increase of 32.8% compared to the same period in 2024. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR CEO Wei Zhejia previously stated that the capacity for advanced processes "is still not enough" and revealed that existing capacity is still about three times short of the product planning and growth expectations of major clients. Wei Zhejia said that the revenue Compound Annual Growth Rate (CAGR) for AI accelerators from 2024 to 2029 is expected to be better than the previous estimate of 44% to 46%, with specific data to be updated early next year. The company's fourth-quarter operations will continue to benefit from strong demand for advanced processes. The recent development trend in the AI market is very positive, with customers maintaining strong outlooks, strengthening the company's belief in the AI mega trend.