TSM Stock Recent News

Leading contract chip manufacturer Taiwan Semiconductor Manufacturing (NYSE: TSM ) has undeniably been a market darling so far in 2024. The stock's ascent to an all-time high of $193.47 on July 11 shows its dominant position in the global chipmaking landscape.

Taiwan Semiconductor is one of the largest suppliers of the AI industry.

Investors looking for a cheaper alternative to Nvidia should consider taking a closer look at its key manufacturing partner, TSMC. TSMC's latest earnings report suggests the growing demand for AI chips is set to drive solid growth for the company.

TSMC reported strong Q2 2024 results with revenue exceeding our expectations, driven by demand for advanced chips. Revenue structure showed growth in HPC segment and decline in Smartphone segment. TSMC is struggling to keep up with the influx of demand for its products, and the company's production capacity will be fully utilized until the end of 2025.

Big tech earnings may have disappointed some, despite still being pretty good. Commentary on AI spending remains positive, but investors may fear the good times won't last.

Last week's price declines across the chip sector saw reverses that were at times dramatic on Monday. This was aided by several positive analyst notes.

Taiwan Semiconductor beat estimates for the top and the bottom lines on surging demand for advanced chips used in AI applications. The chipmaker lifted revenue growth projects for the full year, reflecting its confidence in the longevity of the global AI spending boom.

TSMC is the leading AI foundry in the semiconductor industry. It dominates AI semiconductor manufacturing with over 90% market share in the leading process nodes. TSMC's capacity utilization is expected to remain tight through 2026, bolstering its operating performance.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.

TSM exceeded revenue and GAAP EPS expectations in 2Q FY2024, despite a muted stock reaction due to a broad-based pullback in the semiconductor sector. Management provided a strong growth outlook driven by increasing AI demand, with continued margin expansion and a long-term goal of approaching 60% in gross margin. While the start of production at two overseas fabs next year is expected to impact gross margins by 2-3%, the recent high-NA EUV deal with ASML should improve utilization rates.