TSMC Overvalued Ahead of Earnings; Buy on Dip Below $280

13 days ago

Parkev Tatevosian, CFA

"So as it stands Taiwan Semiconductor stock to answer the question, should you buy before the company announces earnings? I would say no. I would say it looks overvalued. And when you're heading into an earnings release, especially the earnings release for Q4 2025 where management teams sometimes discuss their annual forecast for the year ahead, it's coming with extra volatility or in other words extra risk. So, for now, I don't see it as an attractive opportunity, but if it gets to 280 or below, I would start to see it as a lot more attractive than where it is today."

The analyst advises against buying TSMC stock ahead of the quarterly earnings due to overvaluation and expected volatility. He recommends that an attractive entry point would be around $280 or lower, signaling a potential dip buying opportunity rather than a near-term buy.

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