Author highlights TSMC's FY2025 results showing 35% YoY net income growth on 20% revenue growth with 48% net margin and rising operational efficiency.
TSM — LONG The author points to TSMC's 4Q 2025 results showing 35% YoY net income growth on only 20% revenue growth, a 48% net profit margin, and COGS rising just 10% versus 20% turnover growth, indicating strong operational efficiency. He cites management commentary on cost improvements, favorable FX, higher capacity utilization, 20% ASP increase, and node optimization including converting part of N5 to N3. The implied thesis is that TSMC's dominant ~70% foundry share plus expanding margins make it a quality compounder. No explicit risk or time horizon is stated.
They reached 35% YoY net income growth, with only a 20% increase in revenue: "strong operational execution"