Nvidia CEO Jensen Huang has given Taiwan Semiconductor Manufacturing Company (TSM) a vote of confidence, praising it as “one of the greatest companies in history.” He highlighted the company’s work on Nvidia’s Rubin chip and its six new AI products for Nvidia. This endorsement comes ahead of TSMC stock rising fractionally higher.
In Q2, TSM reported $30 billion in revenue, up 44% year-over-year, driven by increasing demand for AI chips. High-performance computing now accounts for 60% of the company’s sales, showcasing its crucial role in the AI infrastructure boom. Despite competitors struggling with yield challenges, TSMC remains unchallenged in advanced chip manufacturing processes.
TSMC has made significant investments to expand globally, including a $165 billion commitment to establish six wafer fabs and two packaging facilities in Arizona. However, these efforts may impact gross margins, with a projected 2-3% contraction in 2025.
Analysts are optimistic about TSMC’s future, projecting 16-19% revenue growth in 2026-2027 and a “Strong Buy” consensus rating among 12 analysts. The average 12-month price target for TSM stock is $261.38, implying expected upside of about 15% over the next year.
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Source: https://www.barchart.com/story/news/34328044/nvidia-ceo-jensen-huang-anybody-who-wants-to-buy-taiwan-semiconductor-stock-is-a-very-smart-person