Taiwan Semiconductor Manufacturing Company (TSM), the world’s largest contract chipmaker, is trading higher in pre-market hours after reporting strong second-quarter revenue of T$933.8 billion ($31.9 billion). That marks a 38.6% jump from a year ago and beats both analyst expectations of T$927.8 billion and TSMC’s own guidance of $28.4–$29.2 billion from April.
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The surge was largely driven by growing demand for AI chips, with major clients like Nvidia (NVDA) relying on TSMC’s advanced chip-making capabilities to meet booming AI needs.
What Comes Next for TSMC
TSMC will release full Q2 earnings, including profit figures and forward guidance, on July 17. With AI demand looking steady, analysts expect strong growth to continue into the second half of 2025.
Wall Street analysts expect the company to report earnings of $2.36 per share, representing a 61% increase year-over-year. It’s important to note that TSMC has only missed EPS estimates once in the last nine consecutive quarters.
TSMC Stock Movement and Analyst Updates
TSMC stock was up about 2% on Wednesday, extending a 12-month 21.35% rally. Also, the shares are up 18% year-to-date, largely driven by surging AI demand and strategic global expansion.
Investors will note that analyst coverage of TSM stock has been bullish.
- Yesterday, five-star Bernstein analyst Mark Li reiterated a Buy rating on the stock but decreased the price target from $251 to $249, suggesting a 7.4% upside for the shares.
- On July 5, Bank of America Securities analyst Brad Lin maintained a Buy rating with a price target of $260, implying a 12.15% upside for TSM stock.
Analysts have high hopes for TSMC due to its large reach. The company acts as a manufacturer for several major tech companies, including Apple (AAPL), Nvidia, and Advanced Micro Devices (AMD), among others.
Is Taiwan Semi a Good Stock to Buy?
According to TipRanks, Taiwan Semiconductor currently holds a Strong Buy rating based on 9 analyst reviews over the past three months. Of those, eight analysts recommend a Buy, one recommends Hold, and none recommend a Sell. The average 12-month TSM price target stands at $231.63, suggesting a marginal 1.35% downside.
