TSMC sees record Q4 net profit, strong growth prospects, recommended buy.

From Nasdaq: 2025-01-23 15:05:00

Taiwan Semiconductor Manufacturing Company Limited (TSMC) saw its shares rise after posting a record fourth-quarter net income of $374.68 billion, a 57% increase from the previous year. The surge in demand for AI chipsets drove this growth. The stock has already gained 91% in the past year, fueled by the AI sector’s growth.

TSMC’s long-term growth potential looks promising, with first-quarter revenue guidance exceeding expectations and a projected 20% revenue CAGR over the next five years. Demand for custom AI chips from companies like Broadcom and Marvell Technology, along with Apple’s increasing demand for TSMC’s chips, bode well for the company’s future. Additionally, the upcoming launch of 2-nanometer chips is generating significant pre-order demand.

The company’s strong position in the global foundry market, as well as the projected growth in the semiconductor industry, indicate further opportunities for TSMC. The new Stargate AI infrastructure program, backed by a $500 billion allocation from President Trump, is expected to benefit TSMC. With a net profit margin of 40.52%, TSMC is operating efficiently and is well-positioned for growth.

Investors are advised to consider buying TSMC stock, given its long-term growth prospects and strong fundamentals. Brokers have raised the short-term price target for the stock, with an average increase of 7.5% to $235.13. TSMC’s estimated earnings per share are also expected to rise by 21% from last year, supporting its Zacks Rank #2 (Buy) status. The company’s potential for growth makes it an attractive investment option.

Experts have identified TSMC as one of the 7 best stocks for the next 30 days, with significant potential for early price pops. The company’s strong performance and growth prospects have positioned it as a top contender in the market. Investors looking for short-term gains should keep an eye on TSMC’s stock performance in the coming days.



Read more at Nasdaq: 3 Reasons to Buy TSMC Stock Beyond Record Q4 Net Profit