Taiwan Semiconductor Manufacturing Reaches $2 Trillion Market Cap Amid Strong Earnings and AI Demand
On July 30, shares of Taiwan Semiconductor Manufacturing (TSM) rose by 7.6%, pushing its market cap back above the $2 trillion threshold to approximately $2.1 trillion at Friday's close. This followed a period where TSM had lost about one-fifth of its value from its 52-week high despite improving financial results. The company reported strong second-quarter performance, with revenue rising by 34% year-over-year and net income reaching record levels in New Taiwan dollars ($4.31 per U.S.-listed share). Gross margin hit 67.7%, while operating margin reached an impressive 60.3%. Advanced technologies accounted for the majority of wafer revenue, with TSMC's newest 2-nanometer process beginning to ramp up. Looking ahead, management expects continued strong demand and a third-quarter revenue range between $44.6 billion and $45.8 billion. Despite these results, TSM trades at about 20 times forward earnings — in line with the average large company but significantly lower than some of its AI-focused customers like Nvidia.
Topics: AI demand earnings_multiple market_cap