TSMC stock price target maintained at NT$1,320 by Jefferies on strong AI demand
Investing.com
Published Jul 17, 2025 09:04AM ET
Investing.com - Taiwan Semiconductor Manufacturing Company (NYSE:TSM) received a reiterated Buy rating and NT$1,320.00 price target from Jefferies following its second-quarter earnings report.
TSMC reported second-quarter earnings per share of NT$15.36, exceeding both Jefferies' estimate of NT$14.87 and market consensus of NT$14.55. Revenue reached US$30.07 billion, representing a 17.8% quarter-over-quarter increase that surpassed the company's previous guidance, driven primarily by strong artificial intelligence and high-performance computing demand.
The semiconductor manufacturer posted a gross margin of 58.6% for the quarter, compared to Jefferies' forecast of 56.8%, with the difference largely attributed to foreign exchange rates. TSMC's blended average selling price increased 5.4% quarter-over-quarter, partly due to earlier wafer price increases.
For the third quarter, TSMC management guided for 8% sequential revenue growth and maintained that it hasn't observed any changes in customer pull-in behavior. The company expects gross margins between 55.5% and 57.5% in the third quarter, with foreign exchange headwinds impacting profitability.
TSMC raised its full-year 2025 revenue growth guidance to 30% year-over-year in USD terms, though this implies a sequential revenue decline in the fourth quarter. Management indicated it has factored potential tariff impacts into its fourth-quarter outlook, while capacity constraints for chip-on-wafer-on-substrate (CoWoS) packaging technology may also affect fourth-quarter performance.
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