TSMC's Q1 Earnings Beat: Still A Great Buy

A.J. Button12.81K FollowersFollow5ShareSavePlay(9min)CommentsSummaryTaiwan Semiconductor Manufacturing delivered strong Q1 earnings, beating expectations on revenue, earnings, and margins, with 3nm chips driving 25% of sales.Despite robust results and raised guidance, TSM shares saw muted post-earnings price action, possibly due to high expectations already being priced into the stock.TSM trades at 30x earnings, about typical for its sector. A DCF valuation suggests up to 47% upside.Key risks include Taiwan-related geopolitical tensions, emerging competition (notably Intel), and potential supplier price hikes.In this article i explain why I'd be comfortable holding TSM stock today. Taiwan Semiconductor logo Annabelle Chih/Getty Images News This past Thursday, Taiwan Semiconductor Manufacturing (TSM) reported its earnings for the first quarter of 2026. The results beat analyst expectations on both the top and bottom lines, with high-growth rates andThis article was written byA.J. Button12.81K FollowersFollowFinancial journalist. Passed CFA Level 1. Seeking value and dividend growth opportunities, and sharing what I find on Seeking Alpha.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.