TSM stock hits 52-week high, outperforming sector and chip peers, showing strong growth potential

Taiwan Semiconductor Manufacturing Company (TSM) stock hit a 52-week high of $233.82 on July 2, closing at $233.60 with an 18.2% YTD rise, outperforming the Computer and Technology sector. It also surpassed chip peers like NVIDIA, AMD, and Intel in YTD performance.

Investors are increasingly confident in TSM’s long-term potential amidst market volatility, driven by strong fundamentals. TSM remains a key player in the AI revolution, with AI-related revenues tripling in 2024 and expected to double in 2025, positioning the company as a leader in AI-driven technological advancements.

TSM’s first-quarter results showcased significant growth, with revenues up 35% YoY to $25.53 billion and net income rising 53%. The company’s focus on advanced nodes contributed to its success, with 3nm and 5nm nodes accounting for 58% of total wafer sales.

Despite its strong performance, TSM stock remains reasonably priced with a forward P/E ratio of 23.32X, lower than the sector average. This valuation, coupled with TSM’s dominance in advanced nodes and AI growth, makes it an attractive investment opportunity for long-term investors.

TSM’s aggressive investment in capacity and growth opportunities is expected to drive further revenue and earnings growth. Analysts forecast a 29.8% YoY revenue increase in 2025 and a 31.8% EPS rise. With a Zacks Rank #2 (Buy), now is an opportune time to consider adding TSM stock to your portfolio.

Read more at Nasdaq: TSM Stock Hits 52-Week High: Is It Time to Book Profits or Buy More?