What's Going On With Taiwan Semi Stock On Monday?

Taiwan Semiconductor Manufacturing Co TSM will likely report a 30% rise in second-quarter profit on Thursday. The surge in demand for AI has driven TSMC’s stock and the broader Taiwan market to record highs.

The leading contract chipmaker, serving clients like Apple AAPL and Nvidia NVDA, has seen its American Depositary Receipts surpass a trillion-dollar market value, Reuters reports.

Taiwan Semiconductor is projected to report a net profit of roughly $7.25 billion (236.1 billion New Taiwan dollars) for the quarter ending June 30, up from 181.8 billion New Taiwan dollars in the same period last year.

Also Read: Taiwan Semiconductor Joins The Trillion Dollar Club, Surpassing Tesla: Report

This estimate is based on the LSEG SmartEstimate. Taiwan Semiconductor recently reported a 32% rise in second-quarter revenue, reaching $20.7 billion (673.5 billion New Taiwan dollars), above analyst consensus of 654.3 billion New Taiwan dollars

President Capital Management Co Chairman Li Fang-kuo expressed confidence in Taiwan Semiconductor’s third-quarter outlook for all products to Reuters. During its quarterly earnings call, Taiwan Semiconductor will update its projections for the current quarter and the full year.

On its previous earnings call, Taiwan Semiconductor upheld its capital spending guidance for this year at $28 billion to $32 billion, with 70% to 80% dedicated to advanced technologies.

KGI Securities Investment Advisory Co Chairman Chu Yen-min suggested Reuters that Taiwan Semiconductor could increase its capital spending, bolstering its stock price and supporting the broader market.

Price Action: TSM shares traded higher by 0.82% to $188.88 premarket at the last check on Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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