From Yahoo Finance: 2025-04-16 18:01:00

TSMC, the world’s largest contract chip maker, remains bullish for the year due to strong demand for AI applications. Despite U.S. tariff uncertainties, the company expects AI chip revenue to double. TSMC’s shares rose 5% in morning trade as it stands by its annual outlooks for sales and capital spending.

The company’s CFO expects capital expenditure for the year to be between $38 billion and $42 billion. TSMC forecasts revenue growth of 20-30% for the year, with net profit for January-March up 60% year-on-year. The company is positioned to pass on any tariff-related price increases to customers.

TSMC’s revenue from China has dropped to 7% of total sales, while North America generated 77%. The company’s planned $165 billion U.S. investment is crucial for the U.S. chip industry. TSMC plans to allocate about 30% of its capacity for advanced chips in Arizona.

Despite a challenging year for chip stocks, TSMC’s strong performance has lifted shares of Japanese tech firms and some European companies. Foreign investors have sold $8.66 billion worth of TSMC shares this year. The company’s upbeat results have helped boost market sentiment.

Read more: TSMC upbeat on outlook as robust AI demand offsets tariff uncertainty