Taiwan Semiconductor Manufacturing Company Limited (TSMC) reported a record surge in second-quarter profit due to the AI megatrend. Sales rose, with the high-performance computing division accounting for 60% of revenues. TSMC’s clients include NVIDIA and Apple. The company projects a 38% revenue increase for the third quarter. TSMC stock has outperformed the industry.

TSMC holds a leading position in the semiconductor industry, with significant pricing power. The company faces challenges from tariffs and export controls but is expanding globally. TSMC’s complex manufacturing process and high capital investment create barriers to entry, keeping competitors at bay. Brokers are optimistic about TSMC’s future growth potential.

TSMC’s stock price is expected to continue growing due to its competitive advantages and market dominance. Brokers predict a 3% increase in the short-term price target, with potential upside of 13.7%. TSMC’s earnings per share estimate has also increased annually, earning it a Zacks Rank #2 (Buy). The company is well-positioned for future success in the semiconductor industry.

Read more at Nasdaq: 3 Reasons to Buy TSMC Stock Besides 61% Q2 Profit Surge