The analysis assesses Taiwan Semiconductor's (TSM) recent quarterly performance and valuation. The 3nm process technology contributed 23% to wafer revenue in the third quarter, with 5nm and 7nm accounting for 37% and 14% respectively. The company plans to ramp up 2nm technology output explosively in 2026. The analysis highlights high performance computing revenue contribution being flat quarter over quarter at 57% being a downside, while smartphone revenue increased 19% accounting for 30% of total revenue. The analyst mentions TSM is trading near its highest valuation with a forward price to earnings ratio of 23.26 and the intrinsic value per share is at $177, so the recommendation remains hold. Although the analyst see improvement the recommendation is not upgrade to buy. If there is a price decreased of a structural improvement the rating could be a buy for TSM.