Taiwan Semiconductor Manufacturing Company (TSMC) reported a revenue increase of 44.7% year-on-year, reaching $7.9 billion in July 2023. This growth continues to surpass previous monthly performances, driven by strong demand for AI chips from major clients like Nvidia and Apple, with high-performance computing contributing to 52% of its recent revenue.
TSMC’s CEO, C.C. Wei, indicated potential price increases as demand shifts to advanced technologies. Analysts have raised earnings estimates for TSMC, reflecting a Zacks Rank #1 (Strong Buy), with earnings projected to grow 26.5% annually over the next three to five years.
The company’s current earnings multiple stands at 25.8x, slightly above market averages but justified by its anticipated growth rates. TSMC’s strong position in the semiconductor industry and critical role in AI solidify its status as a significant investment opportunity.
