Taiwan Semiconductor Posts 34% Q2 Revenue Growth; Analyst Raises Price Target On ‘Highly Bullish’ Investment Outlook
Shares of Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM ) tanked in early trading on Friday amid a global AI selloff. While the company announced better-than-expected results for the second quarter, management raised the capital expenditures guidance for the full year. This is "highly bullish," as the capex is planned to meet "continued demand for leading-edge process technologies and the emerging agentic AI market," according to DA Davidson. The Taiwan Semiconductor Manufacturing Analysis: Analyst Gil Luria reiterated a Buy rating, while raising the price target to $500. The Taiwan Semiconductor Manufacturing Thesis: The company’s total revenue grew 34% year-on-year and 12% sequentially to $40.2 billion in the second quarter, topping consensus of $40.1 billion, Luria said in the note. Check out other analyst stock ratings. Taiwan Semiconductor Manufacturing’s total revenue was...
Shares of Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM ) tanked in early trading on Friday amid a global AI selloff.
While the company announced better-than-expected results for the second quarter, management raised the capital expenditures guidance for the full year.
This is "highly bullish," as the capex is planned to meet "continued demand for leading-edge process technologies and the emerging agentic AI market," according to DA Davidson.
The Taiwan Semiconductor Manufacturing Analysis: Analyst Gil Luria reiterated a Buy rating, while raising the price target to $500.
The Taiwan Semiconductor Manufacturing Thesis: The company’s total revenue grew 34% year-on-year and 12% sequentially to $40.2 billion in the second quarter, topping consensus of $40.1 billion, Luria said in the note.
Check out other analyst stock ratings.
Taiwan Semiconductor Manufacturing’s total revenue was driven by continued demand for its leading-edge technologies across HPC (high-performance computing), which grew 22% sequentially and account for around 66% of the company’s revenue, he added. "Management emphasized they continue to see strong demand from customers with conviction in the multi year AI infrastructure build out," the analyst wrote.
Outlook: Management guided to total revenue of $44.6-$45.8 billion, higher than consensus of $43.7 billion and implying 37% year-on-year growth at the midpoint, Luria stated.
Taiwan Semiconductor Manufacturing raised its full year capex guide to $60-$64 billion, up around $6 billion versus its prior outlook of $52-$56 billion, the analyst noted. "We expect capital expenditures to continue to increase as TSMC invests further to expand capacity in Arizona and its giga-fab cluster in Tainan Science Park," he further wrote.
TSM Price Action: Shares of Taiwan Semiconductor Manufacturing had declined by 3.18% at $396.71 at the time of publication on Friday.
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