Taiwan Semiconductor (NYSE: TSM) keeps smashing expectations as it gains market share and becomes an essential stock to own for investors focused on the growth of AI. In the segment below, 24/7 Wall St. Analyst Eric Bleeker looks at some recent data from Taiwan Semiconductor and why it points to another earnings beat from the company when it reports a couple weeks from now on July 17th.
Key Points
Taiwan Semiconductor (NYSE: TSM) reported May revenue up 40% year-over-year, beating expectations despite macro concerns, pointing to continued AI-driven demand.
The strong monthly results suggest TSM will likely raise full-year revenue guidance during its next earnings call.
As the upstream linchpin of the AI supply chain, TSM’s performance signals robust ongoing demand across semiconductors and broader AI infrastructure.
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Watch our Analysis on Taiwan Semiconductor’s May Revenue
Important Notes from This Segment
Taiwanese companies need to release their financials on a monthly basis.
This gives investors insight into the ‘headwaters’ of all AI spend, which is Taiwan Semiconductor.
Revenue growth came in at 40%, which is notable because May saw incredible geopolitical uncertainty.
While this growth rate was a drop from the prior month, it came in ahead of expectations.
The bottom line: Taiwan Semiconductor is positioned to once again soundly beat earnings when it next reports earnings on July 17th.
Looking further out, the past couple of months have seen Wall Street repeatedly raising expectations for broader spend on AI chips.
With Taiwan Semiconductor looking to increase its foundry share (there are reports their share could hit as high as 75% in 2026) right as this boom is happening, it’s an essential stock for investors interested int the AI space.
Get More AI News
Looking for more AI stock ideas? We’ve got the perfect resource. 24/7 Wall St.’s ‘AI Investor Podcast’ breaks down the biggest news in the space. The segment above was from the show. We not only analyze the biggest news in the space, but also invest $500,000 in our top ideas across AI.
Transcript:
[00:00:05] Austin Smith: We’ve got Taiwan Semiconductor and Broadcom (NASDAQ: AVGO). Where do you wanna start?
[00:00:09] Eric Bleeker: Yeah, let’s just, Taiwan Semi. I mean, it’s, it’s fascinating. Number one, they have to report monthly earnings. It’s just part of being on, it’s a Taiwanese, uh, stock exchange rule Number two, you know, if you thought about the AI kind of value chain as a river, you know, Taiwan semiconductors is the headwaters.
[00:00:28] Eric Bleeker: It’s, it’s where everything flows from. So they reported their revenue for May. The bottom line is it came in above expectations grown 40% despite all of the, you know, fears around tariffs and geopolitical issues. So that’s a deceleration from the growth rate the prior month, but it’s above expectations.
[00:00:49] Eric Bleeker: And the headline is, it likely means they’re going to once again exceed expectations when they next report earnings. They’re going to likely take their revenue figures up for the year. So number one, Taiwan Semiconductor is a portfolio holding. It continues to do very well and perform very well. And point number two is it’s the data point that which all other data point flows from and it looks very good right now.
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