Citigroup's recent report highlighted that Taiwan Semiconductor Manufacturing Company (TSM, Financial), also known as 台積電 (2330.TT), exceeded expectations in its second-quarter performance. Despite adverse foreign exchange impacts, the company benefited from its strong operational efficiency and high demand for advanced nodes. The gross profit margin stood at 58.6%, slightly down from the previous quarter's 58.8%.
TSM increased its 2025 revenue guidance to achieve a 30% year-on-year growth in US dollar terms, maintaining its capital expenditure forecast between $38 billion and $42 billion. Citigroup emphasized the strong demand for advanced processes and anticipated structural growth in artificial intelligence (AI). As a result, it reaffirmed its "Buy" rating for TSM and raised its target price for TSM's Taiwan stock to 1,400 New Taiwan dollars.