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# TSMC Q4 Preview: Focus On CoWoS And Gross Margin Guidance (Archive)
- URL: https://www.huntingalphas.com/tsmc-q4-preview-focus-on-cowos-and-gross-margin-guidance-archive/
- Published: 2025-01-13T15:30:00.000Z
- Updated: 2026-02-28T09:21:33.000Z
- Description: TSMC’s CoWoS-driven capacity, pricing power, and margins set up an attractive buy.
- Author: Vish (Hunting Alphas)
- Tags: 5-Minute Pitches, #noindex, Archive, #sa-origin, 2330.TW, Tech

*This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.*

## Elevator Pitch

- Taiwan Semiconductor Manufacturing Company Limited aka TSMC continues to gain market share as it beats competition such as Samsung, displacing it among its customers.
- TSMC's CoWoS capacity expansion is expected to double again in 2025; commentary on plant progress would be a key focus point in Q4 FY24's earnings call.
- The next couple of quarters may see further gross margin guidance beats, driven by 15-20% pricing increases in CoWoS due to fully booked-out demand.
- Valuations are attractive, as TSM stock is trading at a 15.3% discount vs. peers (vs. 69% premium in Sep. '24). Technicals are also bullish as it has cleared a monthly resistance area.
- The main risk is that recently going into the Q4 FY24 earnings release this week, Wall Street has upgraded estimates in revenues, EBIT, and EPS; elevating the chances of some bullish themes being already priced in the stock, and limiting incremental upside potential.

Read the full article [here](https://seekingalpha.com/article/4749126-tsmc-q4-preview-focus-on-cowos-and-gross-margin-guidance?ref=huntingalphas.com).

#### Disclosures and Disclaimers

**Past performance ≠ future results. Not investment advice. See* [**full Disclaimer*](https://www.huntingalphas.com/disclaimer/)**.*