Prepare to Capitalize on Taiwan Semiconductor Manufacturing Stock: Pencil in July 17 on Your Calendar
Taiwan Semiconductor Manufacturing Company (TSMC) has reported impressive Q2 2025 results, with revenue reaching a record high of $31.93 billion, marking a 39% increase year-over-year[1]. Although management has provided guidance of $28.4–30 billion, Wall Street analysts are more optimistic, predicting revenue of around $30 billion and earnings per share (EPS) of approximately $2.37[2][4].
TSMC's growth is primarily driven by the artificial intelligence (AI) boom, with High-Performance Computing (HPC) products, including advanced nodes of 7nm and below, accounting for 59% of their revenue and 73% from advanced nodes[1][4]. To meet the increasing AI demands, the company plans to significantly expand its CoWoS packaging capacity[2]. Additionally, TSMC is executing a $100 billion expansion in Arizona[2].
Looking ahead, analysts anticipate continued strong performance for TSMC, with revenue and earnings growth forecasted for the coming quarters and the full fiscal year 2025. The company is expected to see a 28% year-over-year increase in EPS to $25.42 for the full year 2025, with an additional 22% increase to approximately $31.14 in fiscal 2026[2].
The consensus based on recent earnings and analyst outlooks indicates that TSMC is capitalising on the AI-driven semiconductor demand, with robust revenue and earnings growth forecasted for the coming quarters and the full fiscal year 2025, supported by expansion in advanced technologies and capacity.
Key figures summary:
| Period | Revenue (approx.) | EPS (analyst forecast) | Growth Notes | |---------------|-----------------------|------------------------|--------------------------------------------| | Q2 2025 | $28.4B - $31.9B | $2.35 - $2.37 | 39% revenue increase, 60% EPS rise YoY | | Q3 2025 | Strong growth projected| N/A | Continued AI-driven demand expected | | Fiscal 2025 | $ (not specified) | $25.42 (28% increase) | Profit up 35% for fiscal 2025 | | Fiscal 2026 | N/A | $31.14 (22% increase) | Further profit growth expected |
TSMC's stock is priced at 24.3 times forward adjusted earnings, suggesting hidden value. The company has also declared another quarterly payout payable to shareholders on Oct. 9, with an annualized dividend of $2.13 translating to a forward yield of 0.93%. Despite posting stronger-than-expected June-quarter revenue, TSM's stock dipped slightly[3]. The mean price target of $243.50 suggests that the stock could rally as much as 3% from current price levels.
[1] Reuters (2025). TSMC Q2 revenue jumps 39% as AI-related demand surges. Retrieved from https://www.reuters.com/business/technology/tsmcs-q2-revenue-jumps-39-as-ai-related-demand-surges-2025-07-20/
[2] CNBC (2025). TSMC raises Q2 revenue guidance as it prepares for $100 billion expansion in Arizona. Retrieved from https://www.cnbc.com/2025/07/19/tsmc-raises-q2-revenue-guidance-as-it-prepares-for-100-billion-expansion-in-arizona.html
[3] Yahoo Finance (2025). TSMC Stock Dips Despite Strong Q2 Earnings. Retrieved from https://finance.yahoo.com/news/tsmc-stock-dips-despite-strong-q2-180000304.html
[4] Seeking Alpha (2025). TSMC Q2 2025 Earnings Call Transcript. Retrieved from https://seekingalpha.com/news/3798339-tsmc-q2-2025-earnings-call-transcript
- TSMC's robust performance in the stock-market, driven by the AI boom and advanced technologies like 7nm nodes, has caught the attention of data-and-cloud-computing investors, who anticipate continued growth in revenue and earnings, especially with the company's planned expansion in technology sectors and capacity.
- As technology advances and AI demands increase, TSMC's strategic investment in data-and-cloud-computing and stock-market-related technologies, such as CoWoS packaging and expansion in Arizona, will likely prove crucial to their future success in investing and generating impressive financial returns.
