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TSMC stock price target raised to NT$1,400 by Citi on strong 2Q25 results

Published 17/07/2025, 15:48
TSMC stock price target raised to NT$1,400 by Citi on strong 2Q25 results
TSM
4.86%

Investing.com - Citi has raised its price target on TSMC (NYSE:TSM) to NT$1,400 from NT$1,280 while maintaining a Buy rating following the chipmaker’s strong second-quarter 2025 performance.

TSMC reported resilient gross margins of 58.6% in the second quarter, only slightly below the 58.8% achieved in the first quarter, despite negative foreign exchange impacts. The company benefited from strong operational efficiency and high demand for its advanced semiconductor nodes.

The semiconductor manufacturer has raised its 2025 USD revenue growth guidance to 30% year-over-year, while maintaining its capital expenditure forecast at US$38-42 billion for the year.

For the third quarter of 2025, TSMC expects USD-based revenue to increase 8% quarter-over-quarter, though New Taiwan Dollar revenue is projected to remain flat. This implies a quarter-over-quarter decline in the fourth quarter.

Citi believes TSMC will exceed these projections, citing promising demand for advanced nodes and structural growth in artificial intelligence applications as key drivers for the company’s continued performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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