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Key Stats for TSMC Stock
- 1-day Price Change for TSMC stock: 4%
- Current Share Price: $248
- 52-Week High: $248
- TSMC Stock Price Target: $240
What Happened?
Taiwan Semiconductor Manufacturing Company (TSM) stock is up 4% after the world’s largest contract chip manufacturer delivered a record-breaking second quarter that showcased the enduring strength of AI demand.
TSMC reported revenue of $31.70 billion, slightly beating the $31.30 billion estimate, while net income soared 61% year-over-year to $13.5 billion.
The standout performance was driven by TSMC’s high-performance computing division, which includes artificial intelligence and 5G applications, contributing 60% of total revenue, up from 52% in the same period last year.
This surge reflects the company’s dominant position in manufacturing advanced AI processors for clients, including Nvidia and Apple.
CEO C.C. Wei provided bullish forward guidance, forecasting third-quarter revenue between $31.8 billion and $33.0 billion, representing a 38% year-over-year increase and 8% sequential growth at the midpoint.
Wei expects full-year 2025 revenue to increase by around 30% in U.S. dollar terms, supported by growth in AI and demand for the company’s most advanced technologies.
The company’s advanced chip technologies continue to command premium pricing, with 7-nanometer and smaller chips accounting for 74% of total wafer revenue.
Specifically, 3-nanometer chips contributed 24% of revenue, while 5-nanometer chips accounted for 36%, highlighting TSMC’s technological leadership in the most cutting-edge processes.
See analysts’ growth forecasts and price targets for TSMC (It’s free!) >>>
What the Market Is Telling Us About TSMC Stock
The strong market reaction to TSMC stock reflects investors’ confidence in the chip maker’s ability to capitalize on the AI megatrend, which appears to be in its early stages.
As Brady Wang from Counterpoint Research noted, “Surging demand from the AI boom is highly sustainable in the near term, with AI still in its very beginning stages and continues to expand across industries.”
However, TSMC faces potential headwinds from U.S. trade policies, with President Trump threatening “reciprocal tariffs” on Taiwan and potential additional tariffs on semiconductors.
Taiwan Semiconductor is currently facing 32% tariffs announced in April and is engaged in ongoing trade talks with the U.S. Despite these concerns, CEO Wei indicated that customer behavior hasn’t changed in the second half of 2025, though he acknowledged uncertainties stemming from potential tariff impacts.
The market appears to be betting that TSMC’s technological moat and AI positioning will outweigh geopolitical risks, especially given the company’s impressive margins, with a 58.6% gross margin and a 42.7% net profit margin, which demonstrate the pricing power of its advanced technologies.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
