Key Points
Taiwan Semiconductor Manufacturing Company (TSMC) (NYSE: TSM) reported a 44% year-over-year revenue increase in Q2 to $30.1 billion on July 17, exceeding market expectations. The company’s earnings per share rose by 61%, reflecting strong pricing power. TSMC controls 68% of the global semiconductor foundry market, significantly ahead of competitor Samsung, which holds just under 8%.
Looking ahead, TSMC anticipates a 30% growth in full-year revenue for 2025, up from a previous estimate of mid-20% growth. The company also reported a 38% revenue spike expected in the current quarter, driven by robust AI chip demand, with investments in AI technology projected to exceed $3 trillion by 2030, according to McKinsey.
TSMC stock has surged 59% in the past three months and currently trades at 28 times trailing earnings, which is lower than the broader Nasdaq 100 index’s average of over 32 times. Analysts have raised earnings estimates through 2027, indicating strong growth potential for the company.
