Taiwan Semiconductor (NYSE:TSM) shares are rallying today after the semiconductor major reported robust sales for June. The company is slated to report its second-quarter results in about a week.
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TSM’s Robust Sales Growth
TSM’s June revenue jumped by 32.9% year-over-year to NT$207.87 billion. Impressively, its revenue in the first six months of 2024 increased by 28% to NT$1,266.15 billion. The surge comes amid the current AI boom and rising global investments in data centers.
The bumper sales figures could add more fuel to the rally in TSM’s share price, which is up by nearly 87% over the past year. The stock briefly hit a $1 trillion market capitalization recently. According to Bloomberg, TSM’s revenue numbers suggest a 40% top-line growth for the company in the second quarter.
Upcoming Q2 Numbers
Analysts expect TSM to report an EPS of $1.40 on $20.14 billion in revenue for the second quarter on July 18. In the comparable year-ago period, its EPS of $1.13 had come in better than expectations by a healthy margin of $0.06. Importantly, TSM’s 60% market share in the foundry business places the company in a comfortable position. Its dominant market position offers TSM legroom to raise prices for its key products over the coming periods.
What Is the Price Forecast for TSM Stock?
Not surprisingly, the Street remains upbeat about Taiwan Semi with a Strong Buy consensus rating. However, the average TSM price target of $182.56 implies that further gains in the company’s share price may be limited. The stock is currently trading at a relatively high price-to-earnings multiple of 35x.
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