From Yahoo Finance: 2025-04-20 09:18:00

Taiwan Semiconductor Manufacturing Company (TSM) holds strong in the AI market despite tariffs. With 186 hedge fund holders, TSM produces chips for AI applications. Bank of America lowered its price target due to tariff-related demand uncertainties but maintains a “Buy” rating. TSM remains optimistic about growth driven by AI demand.

Morgan Stanley predicts strong and resilient electricity demand due to data centers needing power. Industrial demand may dip in the short term, but reshoring manufacturing to the US could counter this. Bloomberg forecasts a 20-40% increase in US power demand from data centers by 2025 and continued growth in 2026-30.

Energy stocks have historically shown resilience during economic downturns, with demand falling just 0.2% on average since 1960. Morgan Stanley expects electricity consumption from AI to increase tenfold by 2028. The firm acknowledges the risk of a near-term demand shock but remains positive about AI infrastructure spending by tech giants.

TSM ranks 5th among the top 10 AI stocks this week. Despite a recent price target revision by Bank of America due to tariff uncertainties, TSM remains confident in strong revenue growth in 2025 driven by AI momentum. While TSM holds promise, other AI stocks may offer higher returns in a shorter timeframe.

Read more: Taiwan Semiconductor Manufacturing Company (TSM) Holds AI Line Through Tariff Fog