Future Stock Price Trends Are Uncertain
The world's largest foundry (semiconductor contract manufacturer), TSMC, recorded net profits in the second quarter of this year that exceeded expectations due to the AI boom.
On the 18th, TSMC announced that its second-quarter net profit was 247.8 billion Taiwan dollars (approximately 10.5 trillion Korean won), a 36% increase compared to the same period last year. This figure surpasses both Bloomberg's forecast (235 billion Taiwan dollars) and the market analysis firm LSEG's estimate (236.1 billion Taiwan dollars).
TSMC's strong performance is attributed to a significant increase in orders from its clients Apple and Nvidia, driven by the rapid growth of the AI market.
Earlier, on the 10th, TSMC reported that its revenue from January to June this year reached 1.266154 trillion Taiwan dollars, a 28% increase compared to the same period last year. As rosy prospects for TSMC spread, the market capitalization of its American Depositary Receipts (ADR) surpassed 1 trillion dollars intraday on the 8th.
However, the future stock price trend remains uncertain. This is due to the rising geopolitical risks highlighted by former President Donald Trump, the Republican presidential candidate with a high probability of winning the U.S. election in November, who has shown a cynical stance on Taiwan's defense against China. Because of this, TSMC (ADR) stock price plunged about 8% in the New York stock market the previous day.
Bloomberg also reported that signals of overvaluation regarding AI pose a variable for TSMC. Goldman Sachs warned this month that major U.S. companies are spending disproportionately on AI infrastructure compared to demand.
Semianalyst, a semiconductor consulting firm, stated that if TSMC fails to raise its sales growth rate to at least 25% this year, its stock price could plummet.
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