Fund Manager Says Key Apple Supplier 'On The Verge Of Becoming 8th Company To Reach $1T Market Cap' After Revenues Beat Expectations

Influential fund manager Gary Black highlighted that Taiwan Semiconductor Manufacturing Co. TSM, The chipmaker, whose products are used by companies such as Apple Inc. AAPL and Nvidia Corp. NVDA is on the brink of becoming the eighth company to reach a $1 trillion market cap. This comes after the company’s second-quarter revenues exceeded expectations.

What Happened: Black shared his insights on X, formerly Twitter, “In today's pre-mkt summary for Subscribers: $TSM 2Q revenues blew past expectations, and is on the verge of becoming 8th company to reach $1T market cap.”

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Why It Matters: As per their official press release, TSMC’s net revenue for June 2024 amounted to approximately NT$207.87 billion ($6.38 billion). This figure indicates a 9.5% decrease from May 2024, but a significant 32.9% increase compared to June 2023.

Furthermore, TSMC’s revenue for the first half of 2024 reached NT$1,266.15 billion ($38.85 billion), which represents a 28% increase compared to the same period in 2023.

Ahead of this announcement, Morgan Stanley had upped its target on the stock by roughly 9%, predicting that TSMC will raise its full-year sales forecast in the earnings announcement. The brokerage also anticipated TSMC to increase wafer prices due to its robust bargaining power.

Price Action: On Wednesday, TSMC was trading 2.43% higher at $189 in the pre-market after closing at $188.8 on Tuesday, according to Benzinga Pro. The stock has been performing well, with a 52-week high of $192.8 and a low of $84.015.

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Photo by Sundry Photography on Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari