tsmc surges: 33% revenue jump signals strong chip demand

2025-06-16 tsmc

Taipei, Monday, 16 June 2025.
Taiwan Semiconductor Manufacturing Company (TSMC) witnessed a significant revenue surge in 2024. Revenue jumped by 33.89%, hitting 2.89 trillion. This is up from 2.16 trillion the previous year. Earnings also rose substantially, reaching 1.17 trillion. This boost shows strong demand for TSMC’s advanced semiconductor manufacturing. Investors are watching TSMC closely. The chipmaker’s performance is a key indicator of the semiconductor industry’s health. This growth occurred despite geopolitical tensions and market instability. TSMC’s success highlights its critical role in the global tech supply chain. The company’s may revenue grew 40% year over year.

stock market reaction

Following the revenue report, TSMC’s stock (TSM: NYSE) experienced a positive reaction [4]. At the close of trading on June 16, 2025, the stock price reached $215.68, marking a $4.58 increase, or 2.17% [1]. After-hours trading saw a further rise to $215.80, an additional gain of $0.12 or 0.06% [1]. This market behavior underscores investor confidence in TSMC’s financial health and future prospects [GPT].

key financial metrics

TSMC’s robust financial performance is reflected in its key metrics [1]. The company boasts a market capitalization of $903.22 billion [1]. Revenue for the trailing twelve months (ttm) stands at $94.40 billion, with a net income of $39.35 billion [1]. The earnings per share (EPS) is $7.59, and the price-to-earnings (PE) ratio is 28.43 [1]. The forward PE ratio is estimated at 23.00 [1]. TSMC offers a dividend of $2.81, yielding 1.30%, with an ex-dividend date set for September 16, 2025 [1].

analyst outlook and market sentiment

Analysts maintain a ‘strong buy’ rating for TSMC, projecting a price target of $228.75, which represents a potential upside of 6.06% [1]. The stock’s 52-week range is between $133.57 and $226.40, indicating significant volatility and growth potential [1]. TSMC’s beta of 1.34 suggests the stock is more volatile than the overall market [1]. Recent reports highlight a 40% year-over-year revenue increase in May, reinforcing positive market sentiment [2].

manufacturing capacity and expansion

TSMC is actively expanding its manufacturing capabilities to meet growing global demand [7]. The construction of its second plant in Kumamoto, Japan, is scheduled to begin in the second half of 2025 [7]. TSMC’s revenue in Japan exceeded $4 billion in 2024, accounting for 4% of the company’s total revenue [7]. TSMC is also committed to investing $100 billion over the next five years to enhance manufacturing capacity in Arizona [4]. These expansions are crucial for maintaining market leadership and addressing supply chain concerns [GPT].

ai driven growth and strategic partnerships

TSMC’s growth is significantly driven by the increasing demand for AI chips [3]. The company plays a crucial role in the AI hardware ecosystem [3]. TSMC is the primary supplier for Nvidia, whose GB200 chip is highly anticipated [5]. Cloud service providers are increasingly exploring custom ASIC chips, presenting both opportunities and challenges for TSMC [5]. TSMC’s collaboration with Keysight and Synopsys aims to accelerate radio frequency migration to its N4P process, enhancing its capabilities in advanced chip manufacturing [4].

Bronnen

TSMC earnings Semiconductor revenue