Last week, Taiwan Semiconductor Manufacturing (TSM), also known as TSMC, released its Q2 results, delivering its best revenue growth in six quarters. The company’s top-line growth has been on an acceleration trend, with this quarter standing out in particular. This also holds true for the bottom line, with earnings per ADR expected to reach new heights in FY2024.
Given the ongoing AI boom, which is likely to drive continued growth, and the stock’s current reasonable valuation, I remain bullish on TSM despite its prolonged rally over the past year.
3-Nanometer Boom Drives Tremendous Revenue Growth
TSM’s Q2 results exceeded Wall Street’s expectations by a wide margin, both in revenue and earnings, as its cutting-edge 3-nanometer process technology gained some serious traction. The company registered revenues of $20.8 billion, surpassing forecasts by $730 million and marking a substantial 32.8% increase year-over-year.
This quarter…
