Is Taiwan Semiconductor Manufacturing a Buy Before Its Q4 2025 Earnings Release?

Quick Recap - TSMC is scheduled to release Q4 2025 financial results on January 15. - The first nine months of 2025 demonstrated consistent double-digit expansion in revenue, profitability, and per-share earnings. - This chip maker represents quality infrastructure, yet investors should treat it as a long-term holding rather than a quarterly trading opportunity. - [10 stocks we like better than Taiwan Semiconductor Manufacturing ›]( Taiwan Semiconductor Manufacturing(NYSE: TSM) commands the global foundry landscape and delivered impressive returns throughout 2025, with shares climbing 54% while establishing record revenue in Q3. As the company prepares to unveil fourth-quarter results on January 15, many investors wonder whether now is an opportune moment to accumulate positions. Let’s examine what the data suggests.

Understanding TSMC’s Earnings Track Record This Year

Over the first three quarters, TSMC demonstrated resilience with each reporting period bringing meaningful year-over-year gains across revenue, net income, and earnings per share metrics. Yet here’s what many miss: strong financial results don’t always trigger immediate stock appreciation. In fact, the pattern shows TSMC shares remained essentially flat following its first-quarter announcement, while experiencing minor pullbacks of around 2% after the second and third quarterly releases.

Expanding the observation window reveals a more nuanced picture. Five-day performance metrics post-earnings were generally negative for Q2 and Q3 results, though the stock did appreciate roughly 8% within five trading days of the Q1 report. This disconnect between earnings surprises and share price movements is perfectly normal—markets often look beyond the most recent quarter, pricing in longer-term expectations or reacting to broader macro conditions.

Why TSMC Matters Beyond Quarterly Noise

TSMC manufactures processors for major technology giants including Apple, Broadcom, and Nvidia. The artificial intelligence boom has supercharged semiconductor demand, positioning TSMC as one of the primary beneficiaries of this structural shift. While debate continues about whether AI represents a sustainable mega-trend or a speculative bubble, this masks an important reality: AI is only one revenue driver.

The company’s chips power everything from smartphones and personal computers to data center infrastructure. What to buy in Taiwan when considering semiconductor exposure? TSMC remains the foundational play, serving nearly every corner of the modern electronics ecosystem.

The Investment Framework That Actually Works

Here’s the critical distinction: TSMC functions best as a multi-year holding, not a tactical earnings-play. The most successful investment approach involves identifying quality businesses with durable competitive advantages—companies like TSMC—and committing capital based on where management will position the business over the next five to ten years, rather than obsessing over the next quarterly surprise.

Short-term traders chasing momentum around earnings dates often get whipsawed. Long-term investors who evaluate TSMC’s competitive moat, reinvestment rates, and industry tailwinds tend to capture superior returns.

Final Verdict on Taiwan Semiconductor Manufacturing Before January 15

Before committing capital to TSMC, keep this in mind: The Motley Fool’s analyst team recently identified what they believe are the 10 best stocks to buy now, and interestingly, Taiwan Semiconductor Manufacturing didn’t make that particular list—despite being a quality company. Those 10 selections generated exceptional performance historically.

Consider the track record: Netflix made the list in December 2004; investing $1,000 then would be worth $482,326 today. Nvidia appeared on the list in April 2005; a $1,000 position would now be worth $1,133,015.

The Stock Advisor portfolio has delivered 968% cumulative returns versus 197% for the S&P 500. Rather than chasing TSMC around earnings dates, align yourself with a diversified basket of actionable opportunities.

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[Lyle Daly]( holds positions in Broadcom and Nvidia. The Motley Fool owns and recommends Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. The Motley Fool has a [disclosure policy]( The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.