Since late June, stocks related to artificial intelligence (AI) have experienced a slight dip. Taiwan Semiconductor Manufacturing (TSMC) hasn’t faced as severe a drop as some other companies, but it’s still down about 8% from its peak. Nevertheless, there’s a potential event on the horizon that could significantly boost its stock price.
TSMC, as it’s commonly referred to, is set to release its second-quarter earnings after the market closes on July 16th. This announcement might trigger a notable increase in its stock price by July 17th. If you’ve missed the opportunity to buy shares of Taiwan Semiconductor in the past, this period might present a good chance, as the stock could rebound strongly.
Recall Nvidia in 2009? An interesting signal is emerging again. Back in 2009, a “double down” signal appeared for a relatively unknown chipmaker called Nvidia. Now, for the first time in many years, a company significantly smaller than Nvidia is indicating a similar “full conviction” signal.
Chip demand is still growing
TSMC is the world’s largest chip foundry by revenue, built on top-notch manufacturing and technology. This reputation has made it the preferred partner for producing chip designs, even for competitors like Advanced Micro Devices and Nvidia. TSMC’s focus is on chip sales—regardless of the competition surrounding AI development. So when Nvidia projects that AI hyperscaler spending will escalate from $650 billion in 2026 to $1 trillion in 2027, it suggests a positive trend for stock valuations.
But will TSMC provide insights on July 16th that might drive its stock price up?
The information released might not be groundbreaking, yet it could ease some existing market anxieties, especially considering worries around overspending by AI hyperscalers. TSMC is expected to affirm that its business remains strong and that it cannot keep up with demand, sending a reassuring message that might stabilize market perceptions.
This reassurance would be beneficial, as other earnings reports from AI hyperscalers later in July should further bolster market confidence—unless one of them indicates a significant shift in AI data center investments, which would signal a major change in outlook.
In terms of valuation, TSMC isn’t the most affordable stock, with a projected P/E ratio of 27.5 times. However, investors often need to pay a premium for top-tier stocks, and TSMC fits that bill. Personally, I believe Taiwan Semiconductor is a key player in AI growth and could help reignite enthusiasm in the AI stock market after its July 16 results.
Should you buy Taiwan Semiconductor Manufacturing stock now?
Before you consider purchasing Taiwan Semiconductor stocks, there are a few points worth evaluating:
There are numerous stocks that analysts suggest investing in right now. Interestingly, TSMC isn’t on that list. The recommended stocks are projected for substantial long-term growth, likely yielding strong returns in the coming years.
Looking back at stocks like Netflix, had you invested $1,000 when it was first recommended, you would have seen it grow to about $395,679! Or take Nvidia: a $1,000 investment back in 2005 would now be worth over $1.2 million.
This performance strengthens their credibility. With a record of outperforming the S&P 500 significantly, it’s worth considering joining their investing community for the latest insights.
*Stock Advisor predictions resume on July 11, 2026.
Overall, if you’re contemplating investing in TSMC, keeping an eye on market trends and earnings announcements will be crucial.
