TSMC Exceeds Q2 Sales Forecasts, Analysts Expect Continued Growth

Taiwan Semiconductor Manufacturing Company (TSMC) reported Q2 sales of T$933.8 billion ($31.9 billion), exceeding analysts' average estimate of T$927.8 billion and TSMC's own guidance. Rising demand for AI chips drove growth, with clients like Nvidia relying on TSMC's manufacturing capabilities. Analysts expect strong growth to continue into H2 2025, with earnings set to be released on July 17. TSMC stock has rallied 21.35% in the last 12 months and is up 18% YTD. Analyst coverage has been bullish, with a Strong Buy rating and an average 12-month price target of $231.63.

Taiwan Semiconductor Manufacturing Company (TSMC) reported Q2 sales of T$933.8 billion ($31.9 billion), surpassing analysts' average estimate of T$927.8 billion and TSMC's own guidance. The strong performance was driven by rising demand for AI chips, with key clients such as Nvidia relying heavily on TSMC's manufacturing capabilities [2].

Analysts remain optimistic about TSMC's prospects, expecting strong growth to continue into H2 2025. The company's stock has rallied 21.35% in the last 12 months and is up 18% year-to-date (YTD). Analyst coverage has been overwhelmingly bullish, with a Strong Buy rating and an average 12-month price target of $231.63 [1].

TSMC's latest earnings report also highlighted the company's leadership in advanced semiconductor nodes, particularly its N2 technology, which is a critical driver for the burgeoning AI super cycle. The company's N3 nodes are also experiencing robust growth, further underpinning its position as a key player in the semiconductor industry [2].

In addition to its strong financial performance, TSMC has been actively expanding its global footprint. The company has invested heavily in the US, with construction of a large chip manufacturing hub in Arizona. However, TSMC has maintained that these investments will not compromise its plans in other regions, including Japan, where construction of a second fabrication plant has been slightly delayed due to local traffic issues [3].

TSMC's continued growth and market leadership position make it a key player in the semiconductor industry. As AI and other advanced technologies continue to drive demand for cutting-edge chips, TSMC is well-positioned to benefit from this trend.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-adell-harriman-carpenter-inc-buys-14417-shares-of-taiwan-semiconductor-manufacturing-company-ltd-nysetsm-2025-07-05/
[2] https://finance.yahoo.com/news/tsmc-tsm-rating-possible-ai-212350449.html
[3] https://www.taipeitimes.com/News/biz/archives/2025/07/07/2003839844