TSMC’s (NYSE:TSM) revenues in May surged by 30% year-over-year to NT$229.62 billion. However, the semiconductor company’s revenues in May declined by 2.7% sequentially. TSMC generated revenues of NT$1,058.29 billion from January through May, an increase of 27% year-over-year.
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The semiconductor giant is benefiting from the global AI race, making semiconductors for Nvidia (NASDAQ:NVDA). Additionally, global smartphone sales in the first quarter have rebounded, resulting in rising expectations for higher orders for mobile chips.
TSMC Weighing Hike in Chip Prices for Nvidia
Meanwhile, TSMC is weighing raising the prices of its chips for Nvidia. Earlier this week, TSMC’s Chairman, C.C Wei told reporters after the company’s annual general meeting that he had discussed the price hike with Nvidia’s CEO, Jensen Huang.
Furthermore, Huang did acknowledge on the sidelines of a trade show in Taipei that the price of TSMC’s chips was indeed low. He added, “TSMC’s contribution to the world and the tech industry is under-presented by its financial results.”
Is TSM a Buy, Sell, or Hold?
Analysts remain bullish about TSM stock, with a Strong Buy consensus rating based on a unanimous 11 Buys. Over the past year, TSM has increased by more than 60%, and the average TSM price target of $151.28 implies a downside potential of 6.6% from current levels.
