From Yahoo Finance: 2025-05-31 14:35:00

Taiwan Semiconductor Manufacturing Company (TSM) stock has surged 20% in the past month, driven by strong tailwinds like AI demand and advanced chip manufacturing. TSM dominates as the primary chip supplier for major AI companies like Nvidia and Apple, with cutting-edge technology like the 3nm process and upcoming 2nm and 1.6nm nodes.

TSM’s future growth looks promising, with AI chip revenue projected to grow at a 45% CAGR over five years. The company’s strategic investments in advanced nodes and global expansion position it well for the future of computing. Renowned investor Cathie Wood’s Ark funds recently purchased TSM shares, signaling confidence in the company’s trajectory.

TSM’s market dominance with a 64.9% share and strong client relationships provide pricing power and stability. The company’s geographic diversification strategy aims to mitigate risks of a potential China takeover. With substantial investments in US and global capacity expansion, TSM is poised for sustained growth and resilience in the semiconductor market.

TSM’s upcoming Q2 2025 earnings are expected to show significant growth, with projected EPS of $2.30 and revenue increase driven by high demand for advanced processes. The company’s strong April revenues and forecasted sales growth for FY2025 highlight robust performance amid the AI surge. TSM’s attractive valuation compared to peers makes it a compelling investment opportunity.

Wall Street analysts maintain a Strong Buy consensus on TSM stock, with an average price target indicating an 11% upside potential. The semiconductor industry’s growth, fueled by AI adoption, positions TSM as a leader in manufacturing capabilities and technology roadmap. With favorable valuations, strong earnings, and a strategic focus on future trends, TSM presents an appealing opportunity for investors.



Read more at Yahoo Finance: TSMC Stock Maintains High-Conviction AI Play Status With $220 Price Target