However, the stock actually ranks quite favorably against the other prominent semiconductor companies in terms of valuation, profit margins, and revenue growth forecasts. TSM's stock price has risen since the results were released, but underperformed its industry. Third quarter revenue guidance raised to $19.8 to $20.6 bln vs analyst consensus of $18.5 bln, which would represent revenue growth of 35.6%.Revenue from high-performance computing, IoT, and automotive segments up >10% quarter on quarter.Gross margin and operating margin up 3.5% quarter on quarter and ~9% year over year.Normalized EPS: Up 67% year-on-year to $1.55 and $0.05 higher than consensus estimates.Revenue: Up 36.6% year-on-year to $18.16 bln and $0.33 mln higher than consensus estimates.Since then, earnings have continued to compound despite concerns of an industry slowdown.

We previously pointed out that TSM has a strong track record with regard to generating returns on capital and is continuing to invest for the future. Taiwan Semiconductor Manufacturing ( NYSE: TSM) announced solid results last week, with strong revenue growth, improved margins, and raised guidance. Investors may need to be patient as the industry faces possible headwinds.The stock ranks favorably against its peers.Taiwan Semiconductor Manufacturing continues to deliver strong numbers.

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