What's Going On With Taiwan Semiconductor Stock On Wednesday?

Benzinga07-10

Taiwan Semiconductor Manufacturing Co (NYSE:TSM) reported significant growth in second-quarter revenue on Wednesday, surpassing market forecasts due to the booming demand for artificial intelligence (AI) applications.

Taiwan Semiconductor, which counts Apple Inc (NASDAQ:AAPL) and Nvidia Corp (NASDAQ:NVDA) among its clients, has experienced a surge towards AI that has helped it withstand the decline in pandemic-driven demand, pushing Taiwan Semiconductor’s share price to a record high, Reuters reports.

In the April-June period, Taiwan Semiconductor’s revenue reached roughly $20.67 billion (673.51 billion New Taiwan dollars), surpassing analyst consensus of 654.27 billion New Taiwan dollars. This represents a 32% increase from $15.68 billion in the same period last year.

Also Read: Taiwan Semiconductor’s Expansion Spurs Luxury Market in Kumamoto: Report

During its most recent earnings call in April, Taiwan Semiconductor projected second-quarter revenue between $19.6 billion – $20.4 billion. For June alone, the company reported a 33% year-on-year revenue increase to NT$207.87 billion.

Taiwan Semiconductor’s ADRs hit a record of $192.79 on Monday, temporarily boosting the company’s market value to $1 trillion.

Global businesses invest heavily in AI-related infrastructure, driving demand for hardware like Nvidia chips.

Wall Street brokerages have raised their price targets for Taiwan Semiconductor, anticipating higher customer charges in 2025 to boost earnings.

Taiwan Semiconductor stock gained 85% in the last 12 months. Investors can gain exposure to the semiconductor sector through ProShares Ultra Semiconductors (NYSE:USD) and Invesco PHLX Semiconductor ETF (NASDAQ:SOXQ).

Price Action: At the last check on Wednesday, TSM shares traded higher by 2.53% to $1890 premarket.

Also Read:

  • Nvidia and AMD Surge as AI Demand Grows, Analysts Raise Price Targets

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo by Jack Hong via Shutterstock

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