Taiwan Semi (TSM) reports strong earnings and positive outlook, benefiting from AI growth

From Yahoo Finance: 2025-04-21 12:35:00

Taiwan Semi (TSM) reported strong earnings with a positive outlook, according to Defiance ETFs CEO Sylvia Jablonski. The company’s profits rose by 60% last quarter, benefiting from the growth of AI. Despite tariff risks, TSM is expanding to Arizona to reduce exposure.

In the same segment, Tyler Herriage from Vertical Research Authority noted that tariffs could have a silver lining for AI stocks. By raising prices, tariffs may increase the importance of investing in AI. While cautious in the short term, Herriage remains bullish on the medium-to-long-term outlook for AI stocks.

Jablonski believes that the Mag 7 companies will continue investing in AI, even accelerating ahead of tariffs. However, 100% tariffs could negatively impact TSM’s earnings in the future. Herriage emphasizes the potential of AI stocks in delivering higher returns within a shorter timeframe compared to TSM.

For more insights on AI stocks, check out the report on the cheapest AI stock trading at less than 5 times its earnings. While TSM shows promise, the report highlights another AI stock that has performed well since 2025. Consider exploring opportunities in the AI sector for potential growth and returns.

Read more: Taiwan Semi’s (TSM) Outlook Is Positive, Investment Expert Says