Taiwan Semiconductor (TSM) Revenue Soars 31%—Time to Load Up on Shares?
TSM just dropped a bombshell—revenue skyrocketed 31%. The chip giant’s cooking with gas while competitors scramble for scraps.
Why this matters: Semiconductor demand isn’t slowing down. AI, EVs, and that gadget in your pocket all need TSM’s silicon. No fab, no future.
The bullish case: 31% growth in this economy? Either they’re printing money or everyone else is asleep at the wheel. (Spoiler: It’s the first one.)
The bearish whisper: ‘But valuations!’—says every hedge fund manager who missed the rally. Meanwhile, TSM keeps cashing checks.
Bottom line: In a world running on chips, the house always wins. Your move, investors.
Should You Buy TSM Stock Now: Wall Street Answers
While Nvidia has been the dominant force in AI thanks to Blackwell, TSMC remains the world’s largest contract chipmaker, with its ties to Apple playing a huge role. Wall Street expects the gains for the semiconductor developer to continue, with analysts outlining a clear path to $90 billion in AI-driven sales by 2029.
Needham analyst Charles Shi upgraded his price target for TSMC stock to $270 from $225, maintaining a “Buy” rating on the world’s largest contract chipmaker. His analysis suggests that TSMC can achieve its ambitious AI revenue target without requiring dramatic volume increases, instead relying on higher silicon content per package and custom high-bandwidth memory solutions. Furthermore, while Shi warns of potential headwinds in 2026 due to slower AI accelerator volumes, he projects a strong recovery with nearly 40% growth in 2027 and 45% in 2028.
Looking ahead, gross margins are expected to face pressure from overseas facility startup costs, with an anticipated decline from 58.8% to approximately 58% in the second quarter. Nevertheless, Taiwan Semiconductor maintained its full-year revenue growth forecast of approximately mid-20%, underscoring its confidence in sustained AI demand. The company is expected to increase sales from $87.88 billion in 2024 to $170.3 billion in 2027.
