Taiwan Semiconductor Manufacturing Company (TSM) is seeing a significant rise in premarket trading today, climbing 1.71% to $210.50 after closing at $207.00 yesterday. Analysts point to the company’s impressive May 2025 revenue report, which demonstrated continued strength in AI chip demand despite some softening in sequential performance.
The semiconductor giant’s strong year-over-year revenue growth has fueled investor confidence and contributed to today’s premarket gains.
TSMC’s May 2025 revenue jumped 39.6% year over year, reaching NT$320.52 billion. This impressive performance even surpasses the first five months of 2025’s earnings, which saw a remarkable 42.6% increase compared to the same period in 2024. This sustained double-digit growth showcases TSMC’s ability to capitalize on the artificial intelligence boom and strong demand for semiconductors across various sectors. This success further solidifies its position as the world’s leading contract chip manufacturer and a vital player in the global AI supply chain.
The stock’s positive momentum is supported by both market performance and technical indicators, indicating potential continued bullish sentiment for TSM shares.
With solid returns over recent years, TSMC boasts a 25.92% year-over-year return and an impressive 265.66% gain over the past five years, outperforming the broader Taiwan market index. Its current market capitalization of $1.074 trillion and forward price-to-earnings ratio of 21.83 suggest relatively attractive valuations compared to other major semiconductor stocks.
Analyst sentiment remains optimistic with price targets ranging from $165.66 to $265.34, and an average target of $224.36 suggesting additional upside potential from current levels. The company’s strong financial metrics – including a 41.69% profit margin and a 31.64% return on equity – provide robust support for the positive market reaction to these financial results.