Taiwan Semiconductors (TSMC) just released its May sales figures. The number came in at NT$320.5 billion, up 39.6% y/y – benefitting from the unrelenting AI demand. Year-to-date, revenue is up 42.6% y/y. This is another strong print from TSMC, and it looks like share price has reacted favourably pre-market. The guidance for FY-2025 is revenue growth of 25% (but, in USD). Longer-term, TSMC has guided for a revenue CAGR of 20% through 2029. The outlook is underpinned by the demand for AI accelerators, which are expected to grow at a mid-40% CAGR. Based on our estimates, we have TSMC trading on an FY-2025 PE multiple of 22.4x, which is a wide discount to some of the other AI-enablers that trade on forward multiples in the 30’s.