TSMC Shares Climb After Sales Soar 39% on AI Boom

July 10 - Taiwan Semiconductor Manufacturing Company Limited TSM shares surged about 1.5% in Thursday premarket trading after the chipmaker reported a strong lift in quarterly sales.

TSMC said revenue for the June quarter rose 39% year?over?year to NT$934 billion (New Taiwan dollars; about US$32 billion), topping the average analyst estimate of NT$928 billion.

For June alone, sales reached NT$263.71 billion, down roughly 18% from May but up about 27% compared with June 2024. In the first half of fiscal 2025, TSMC posted NT$1,773.05 billion in revenue, marking a 40% increase versus the prior?year period.

The contract manufacturer supplies major customers such as Nvidia NVDA and Apple AAPL, where demand for AI?related chips remains robust. Capacity constraints on advanced nodes and seasonal inventory shifts may explain June's sequential dip, analysts say.

Chairman and CEO C.C. Wei noted that momentum in AI accelerator orders is continuing throughout 2025, and the company expects related revenue to more than double by year?end.

TSMC will release its full second?quarter earnings on July 17, and investors will watch for guidance on capacity expansion and cost controls as global chip demand evolves.

Is TSM Stock a Buy Now?

Based on the one year price targets offered by 17 analysts, the average target price for Taiwan Semiconductor Manufacturing Co Ltd is $228.33 with a high estimate of $270.00 and a low estimate of $119.37. The average target implies a downside of -1.51% from the current price of $231.84.

Based on GuruFocus estimates, the estimated GF Value for Taiwan Semiconductor Manufacturing Co Ltd in one year is $221.11, suggesting a downside of -4.63% from the current price of $231.84. Gf value is Gurufocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. For deeper insights, visit the forecast page.