From Seekingalpha · Bill Gunderson · · 50s
TSMC Spending Lead To Maintain Stock Edge
TSMC's 2nm node expansion drives growth but strains margins as it invests to keep its market lead.
In brief
TSMC's 2nm node expansion drives growth but strains margins as it invests to keep its market lead. TSMC's 2nm node now represents 8% of wafer revenue, driving top-line growth and near-term margin pressure. Originally reported by Seekingalpha.
TSMC Stock Grade
TSMC earns an A- Gunderson Grade, ranking in the top 2% of tracked stocks and is rated Buy.
2nm Node Revenue Share
TSMC's 2nm node now represents 8% of wafer revenue, driving both top-line growth and near-term margin pressure.
Earnings Growth
Trailing 12-month EPS grew 41, 63% YoY for four quarters, but gross margin fell 1.3 points.
Valuation Assumptions
Valuation assumes 15% annual earnings growth; future returns hinge on margin recovery, overseas fabs, and sustaining multiples.
At a glance
TSMC's 2nm node now represents 8% of wafer revenue, driving top-line growth and near-term margin pressure.
