Shares of chipmaker Taiwan Semiconductor Manufacturing (TSM 3.25%) rose 2.3% through 10:45 a.m. ET on Wednesday. This morning in a filing with the Securities and Exchange Commission, TSMC reported that its June 2024 revenue fell 10% in comparison to May, but its sales year over year increased by nearly 33%.

And zooming out to a big-picture view, sales in the first half of 2024 are now up 28% in comparison to the first half of 2023.

Sales surge for TSMC

That’s great news for TSMC stock, and investors are rewarding it as such. The first six months of this year have seen it collect about $38.8 billion, meaning that the company has so far achieved about 46% of analyst’s revenue forecasts for the full year.

As long as revenue continues growing at its present rate, TSMC appears to be on course to either meet or surpass analyst forecasts.

Is Taiwan Semiconductor stock a buy?

Management did not say how much profit it earned in June, nor how much it expects to earn through the end of this year. Consensus forecasts have the company earning about $6.35 per share by the end of fiscal 2024, and if it’s on track to meet revenue targets, then it makes sense to assume it’s on track to meet earnings targets as well.

That being said, $6.35 per share in earnings would value TSMC stock at nearly 30 times earnings, and for 28% growth, that’s only a fair price, not a bargain price. Factor in the company’s modest 1.3% dividend yield, though, and the valuation picture starts to improve a bit.

On balance, I would say that the stock still looks attractive today. But after rising 77% already over the past year (three times the growth of the S&P 500), most of the profit that’s going to be made on TSMC stock probably already has been made.