Taiwan Semiconductor Revenue Surges 53%, TSMC to Follow?

Taiwan Semiconductor (TSMC) just released a blockbuster revenue report, reinforcing its position at the center of the global AI revolution. Revenue in August reached NT$514.8 billion ($16.3 billion). Analysts, on average, are expecting 46.8% sales growth for the current quarter. The gain also represented a 53.3% year-over-year increase and a 10.1% increase from July, and marked the company’s fourth consecutive month of record revenue growth.

Despite the solid report, TSMC stock slipped over 1% on Thursday. In the past month, shares are up just 2%, indicating a stall in growth. Fortunately, this latest report does provide a potential catalyst for the stock to begin a rally. TSMC’s second-quarter results showed that profit growth is accelerating. Indeed, the company reported that second-quarter earnings increased more than 77% year over year, demonstrating that higher sales are translating into significantly larger profits. This matters because investors ultimately buy earnings power, not just revenue growth.

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