Key HighlightsTaiwan Semiconductor is projected to deliver Q2 net profit of T$632.6 billion (~$19.65 billion), representing a 59% year-over-year increaseSecond-quarter revenue has already climbed 36% compared to last year, surpassing Wall Street expectationsMarket watchers anticipate TSMC will upgrade its annual revenue growth projection beyond the existing “above 30%” forecastInvestment in capital expenditure may reach approximately $58 billion, exceeding the previously announced $52–$56 billion guidanceTSM shares have climbed 56% in 2024; Wall Street consensus points to “Buy” with average target of $449.38Taiwan Semiconductor Manufacturing Company enters Thursday’s quarterly report with strong momentum behind it. The global leader in advanced semiconductor production is projected to deliver a 59% increase in second-quarter net profit, reaching T$632.6 billion (approximately $19.65 billion), based on LSEG SmartEstimate polling 18 market analysts.Taiwan Semiconductor Manufacturing Company Limited, TSMShares of TSM began Tuesday trading at $421.43, below the 52-week peak of $479.00, though the stock has delivered impressive 56% gains so far this year.Should profits exceed T$572.5 billion, the chipmaker would notch another all-time quarterly record — extending its profit growth streak to ten consecutive quarters.The company has already provided investors with a glimpse of its performance. Earlier this week, TSMC disclosed a 36% year-over-year revenue increase for the second quarter, exceeding market expectations and establishing a fresh record. Revenue for June alone soared 67.9% compared to the prior year.Strong customer appetite for TSMC’s cutting-edge 3-nanometre and 2-nanometre manufacturing processes, combined with demand for its CoWoS advanced packaging technology, continues to fuel exceptional results. Major clients Nvidia and Apple remain significant contributors to TSMC’s production volume.“TSMC’s robust second-quarter performance demonstrates that AI-driven demand continues at elevated levels, fueling requirements for cutting-edge chip manufacturing and CoWoS packaging solutions,” noted Dan Nystedt, research analyst at TriOrient.Annual Outlook Takes Center StageBeyond quarterly earnings figures, market participants are keenly awaiting potential revisions to full-year revenue projections. The company’s existing guidance calls for growth “above 30%” year-over-year. Haas Liu, Bank of America’s Asia semiconductor analyst, suggests supply chain intelligence indicates a probable upward adjustment.Capital spending plans represent another area of investor interest. During its April conference call, TSMC indicated that 2026 capital expenditure would reach the upper boundary of its $52–$56 billion estimate. Liu now projects capital spending could climb to roughly $58 billion, driven by constrained equipment availability and capacity expansion initiatives from memory manufacturers such as Samsung, Micron, and SK Hynix.Not all analysts expect increased capex guidance. TriOrient’s Nystedt believes TSMC will maintain its existing spending range.TSMC’s market valuation currently stands at approximately $2.19 trillion — nearly double Samsung Electronics’ valuation of roughly $1.97 trillion.Wall Street Maintains Bullish StanceAnalyst outlook remains decidedly optimistic. Bank of America elevated its price objective from $490 to $590 in late June, while Susquehanna increased its forecast from $500 to $575 during the same period. Needham pushed its target to $480 earlier in April.Citigroup confirmed its “Buy” recommendation on July 6. The aggregate rating from 16 analysts stands at “Buy,” with a mean price objective of $449.38. Two analysts maintain “Strong Buy” ratings.The semiconductor giant also recently increased its quarterly dividend to $1.1136 per share, up from $0.95, scheduled for October 8 payment to shareholders registered by September 16.Institutional ownership continues expanding. Bleakley Financial Group increased its TSM position by 15.1% during the first quarter, elevating its total holdings to 68,969 units valued at approximately $23.3 million.TSMC’s earnings conference call is set for 0600 GMT Thursday, where third-quarter projections and any annual guidance modifications will take center stage.The post Taiwan Semiconductor (TSM) Stock: Fifth Consecutive Record Quarter Within Reach appeared first on Blockonomi.