Buy, Sell, or Hold Taiwan Semiconductor (TSM) Stock as Q4 Earnings Approach?

Earnings Expectations - Q4 sales are expected to increase 34% to $26 38 billion compared to$19 62 billion in the same quarter last year [2] - Q4 EPS is projected to spike 50% to $2 16 versus$1 44 per share a year ago [2] - The company has posted an average EPS surprise of 7 9% in its last four quarterly reports [2] Financial Outlook - Total sales are expected to increase 29% for fiscal 2024 and expand another 25% in FY25 to $111 33 billion [3] - Annual earnings are projected to spike 33$6 92 per share in FY24 compared to $5 18 in FY23 [4] - FY25 EPS is expected to rise 27$8 81 [4] - FY24 and FY25 EPS estimates have trended lower over the last two months [4] Stock Performance & Valuation - TSM stock has soared over +100% in the last year outperforming broader indexes and Qualcomm (QCOM) while nearing Nvidia's (NVDA) gains of +141% [5] - TSM is trading at a 22 6X forward earnings multiple near the S&P 500 benchmark below Nvidia's 44 8X but above Qualcomm's 14 3X [6] Investment Consideration - Taiwan Semiconductor is considered one of the most appealing long-term growth prospects in the tech sector [8] - The company currently holds a Zacks Rank 4 (Sell) due to declining earnings estimate revisions [8] - Strong Q4 results are needed to reconfirm the company's attractive outlook after its extensive stock rally [8]