TLDR
- Nvidia CEO Jensen Huang praised Taiwan Semiconductor (TSM) as “one of the greatest companies in human history” and called buyers “very smart”
- TSM reported Q2 revenue of $30.07 billion, beating analyst estimates and surging 44% year-over-year
- Institutional investors continue adding positions, with Monetary Management Group increasing holdings by 127.5%
- Wall Street analysts maintain “Strong Buy” rating with average price target of $261.38
- Stock trades at $227.55 with market cap of $1.18 trillion, down slightly from recent highs
Taiwan Semiconductor Manufacturing Company received a powerful endorsement this week from Nvidia CEO Jensen Huang during his visit to Taiwan. Huang called TSM “one of the greatest companies in the history of humanity.”
The Nvidia chief went further, telling reporters that “anybody who wants to buy TSMC stock is a very smart person.” His comments came as he discussed TSM’s work on Nvidia’s upcoming Rubin chip architecture.
Huang revealed that TSM is currently working on six additional artificial intelligence products for Nvidia. The partnership highlights the deep relationship between the two semiconductor giants.
TSM shares opened at $227.55 on Friday, down slightly by 0.5%. The stock has experienced volatility recently alongside other large-cap AI names. Despite breaking below its 50-day moving average this week, shares remain up about 15% year-to-date.
The company’s market capitalization stands at $1.18 trillion. TSM trades with a PE ratio of 25.95 and maintains a beta of 1.19.
Strong Financial Results Drive Confidence
TSM delivered impressive financial results in its latest quarterly report. The company posted revenue of $30.07 billion for Q2, surpassing analyst estimates of $28.50 billion.
Earnings per share reached $2.47, beating consensus estimates of $2.13 by $0.34. The revenue figure represents a 44% increase compared to the same quarter last year.
High-performance computing now accounts for 60% of TSM’s total sales. This shift reflects the growing demand for AI chips across the technology sector.
The company achieved a return on equity of 33.37% and maintained a healthy net margin of 42.91%. These metrics demonstrate TSM’s operational efficiency and profitability.
TSM’s technological leadership remains strong, particularly in advanced manufacturing processes. The company leads in 3nm and 5nm chip production while competitors face yield challenges.
Institutional Interest Continues Growing
Investment firms continue increasing their stakes in TSM. Monetary Management Group raised its position by 127.5% in the first quarter, bringing total holdings to 2,275 shares valued at $378,000.
Quantbot Technologies made an even larger move, lifting its stake by 452.2% during the same period. The firm now owns 47,425 shares valued at $7.87 million.
DekaBank Deutsche Girozentrale increased its holdings by 0.9% to 1,339,479 shares worth $214.4 million. Several other institutional investors also expanded their positions during the quarter.
Hedge funds and institutional investors now own 16.51% of the company’s outstanding stock. This level of institutional ownership reflects confidence in TSM’s long-term prospects.
Wall Street analysts maintain their optimistic outlook on the stock. Four analysts currently rate TSM as a “Buy” with no negative ratings.
The consensus price target sits at $258.33, implying upside potential from current levels. Individual targets range from Barclays’ $240 to Needham’s $270 price objective.
TSM has set guidance for Q3 2025 with analysts forecasting full-year earnings per share of 9.2. The company’s global expansion includes a $165 billion investment in Arizona facilities and production at its first Kumamoto plant in Japan.
