TSM is the leading contract semiconductor manufacturer in the world, taking companies’ designs and turning them into chips. The company’s third-quarter fiscal 2025 report showed $33.1 billion in revenue (beating guidance), a gross margin of 59.5% (an improvement of 0.9%), and increased revenue full-year guidance to around 35% higher than the prior year. TSM reports next on Jan. 15.
No wonder TSM shares are up nearly 51% in the last year. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.
Institutional volumes reveal plenty. In the last year, TSM has enjoyed strong investor demand, which we believe to be institutional support.
Each green bar signals unusually large volumes in TSM shares. They reflect our proprietary inflow signal, pushing the stock higher:
Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with TSMC.
Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, TSM has had strong sales and earnings growth:
Source: FactSet
Also, EPS is estimated to ramp higher this year by +23.3%.
Now it makes sense why the stock has been generating Big Money interest. TSM has a track record of strong financial performance.
Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term.
TSMC has been a top-rated stock at MoneyFlows for years. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s had 13 Big Money outlier inflow signals since 1999 and is up 2,967% since the first one. The blue bars below show when TSM was a top pick in the last two years…Big Money still believes:
Tracking unusual volumes reveals the power of money flows.
This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.
The TSM action isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no position in TSM at the time of publication.
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This article was originally posted on FX Empire
