Taiwan Semiconductor (TSM) shares are ticking higher today after the semiconductor major reported better-than-anticipated numbers for the second quarter.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
TSM’s Q2 Results
Revenue increased by 32.8% year-over-year to $20.82 billion, outpacing expectations by $49 million. The earnings per American Depository Receipt (EPADR) of $1.48 exceeded the consensus estimate of $1.41. Also, the company saw increases in both its revenue and profit sequentially.
During the quarter, TSM generated nearly 67% of its total wafer revenue from the sales of 7-nanometer and more advanced technologies. Furthermore, TSM’s CEO, C.C. Wei, stated that second-quarter results were driven by strong demand for its leading 3-nanometer and 5-nanometer technologies, partially offset by seasonal trends in smartphones.
TSM’s Q3 Outlook
Looking ahead to Q3, TSM forecasts revenue in the range of $22.4 billion to $23.2 billion, with an operating profit margin expected to hover between 42.5% and 44.5%.
TSM’s CFO, Wendell Huang, expects the third quarter results to be supported by strong smartphone and AI-related demand.
What Is the Target Price for TSM Stock?
TSM’s share price has rallied by nearly 68% over the past year. Overall, the Street has a Strong Buy consensus rating on the stock, alongside an average TSM price target of $191.14. However, analysts’ views on TSM could see changes following today’s earnings report.
