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Taiwan Semiconductor Manufacturing Company (NYSE: TSM) shares are gaining momentum in premarket trading, rising 1.71% to $210.50 after closing at $207.00 the previous session. The semiconductor giant’s stock surge comes on the heels of its May 2025 revenue report, which demonstrated continued strength in AI chip demand despite some sequential softening.
 

TSMC’s Strong Year-Over-Year Revenue Growth Powers Investor Confidence

TSMC’s May 2025 revenue report revealed impressive year-over-year performance that likely contributed to today’s premarket gains.

The company reported consolidated revenue of NT$320.52 billion for May 2025, representing a substantial 39.6% increase compared to May 2024’s NT$229.62 billion. Even more compelling for investors, the company’s cumulative revenue for January through May 2025 reached NT$1,509.34 billion, marking a robust 42.6% year-over-year increase from the same period in 2024.

This sustained double-digit growth trajectory demonstrates TSMC’s ability to capitalize on the ongoing artificial intelligence boom and strong semiconductor demand across multiple sectors. The revenue figures validate the company’s position as the world’s leading contract chip manufacturer and its critical role in the global AI supply chain.
 

Market Performance and Technical Indicators Support TSM’s Bullish Sentiment

The premarket rise to $210.50 represents continued momentum for TSM shares, which have delivered solid returns across multiple time horizons. The stock has generated a 25.92% return over the past year and an impressive 265.66% gain over five years, significantly outperforming the broader Taiwan market index.

With a current market capitalization of $1.074 trillion and trading at a forward price-to-earnings ratio of 21.83, TSM maintains relatively attractive valuations compared to other major semiconductor stocks.

Analyst sentiment remains constructive, with price targets ranging from a low of $165.66 to a high of $265.34, and an average target of $224.36 suggesting additional upside potential from current levels. The company’s strong financial metrics, including a 41.69% profit margin and 31.64% return on equity, provide fundamental support for the positive market reaction to the revenue results.

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