Taiwan Semiconductor receives bullish outlook with $90B AI revenue forecast, strong performance.

From Yahoo Finance: 2025-07-01 11:18:00

Taiwan Semiconductor Manufacturing Company (TSMC) receives a bullish outlook, aiming for $90 billion in AI revenue by 2029. Analyst Charles Shi raises TSM stock price target to $270, citing strong momentum. TSM maintains market dominance with 67% foundry market control and 90% of advanced chip production, serving major customers like Nvidia and Apple.

TSM demonstrates robust Q1 performance, with revenue up 42% and net income surging 60%. The company projects second-quarter revenue between $28.4-29.2 billion, with a long-term gross margin target above 53%. TSMC’s strategic expansion includes $165 billion allocated for U.S. facilities and new operations in Japan and Germany, showcasing its commitment to growth.

Needham analyst Shi warns of potential AI revenue deceleration in 2026 but forecasts at least 20% YoY growth next year. TSM’s valuation at 24 times forward adjusted earnings suggests potential upside given its growth trajectory. While geopolitical risks persist, TSMC’s critical role in global semiconductor production and diversification efforts help mitigate these risks.

Investors should anticipate TSM’s earnings report on July 17, likely to impact share price. TSM’s advanced manufacturing capabilities and market position offer growth potential. Despite concerns over geopolitical risks, TSMC’s continued efforts in diversification and global expansion enhance its resilience in the market.



Read more at Yahoo Finance: Taiwan Semiconductor Stock Scores a Street-High Price Target on $90B AI Revenue Forecast