Demand continues to be strong! TSMC's July sales surged 44.7% from the same month last year
TSMC's strong sales growth continued in July after second-quarter financial results surpassed expectations across the board.
8/9 (Friday), $Taiwan Semiconductor (TSM.US)$ has announced its latest monthly results. Due to strong AI demand and expectations for price increases, TSMC's July sales were 256.9 billion 50 million Taiwan dollars, up 44.7% from the same period last year and 23.6% from the previous quarter. Cumulative sales were 152.3 billion 17 million Taiwan dollars, up 30.5% from the same period last year.
TSMC shares started at a high today and rose 4.2% before closing. Despite “Black Monday” in US stocks, TSMC stocks fell, but the cumulative rate of increase since the beginning of this year has exceeded 60%.
Morgan Stanley even sees that TSMC's ratings have become more attractive after recent sales. The agency recentlyTSMC is listed as one of the most recommended stocks.
Morgan Stanley analyst Charlie Chan (Charlie Chan) said in the report, “We are bullish on TSMC's quality and defense power amid prolonged semiconductor downcycles. Confirmation of price increases and continued strong investment in artificial intelligence (AI) equipment should be an important catalyst (for TSMC).
Mr. Chang predicts that “TSMC should be able to achieve a gross profit margin of 55% or more in 2025, and after economies of scale are realized at overseas factories, it will gradually approach the gross profit margin level of 60% from 2028 to 2030” due to price increases.
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