From Yahoo Finance: 2025-04-06 10:45:00

Taiwan Semiconductor Manufacturing (TSMC) has seen a 2025 stock decline of over one-third due to tech industry tariffs. Despite this, TSMC’s first two months’ sales show promise, potentially outperforming expectations. The company’s revenue growth is driven by demand for AI chips, highlighting a strong position in the chip market.

TSMC’s revenue is up 39% in the first two months of 2025 compared to last year, exceeding Q1 guidance. Earnings are expected to rise significantly, with a 5.5% operating margin increase and a projected 49% jump in Q1 earnings. The company is well-positioned to capitalize on robust AI chip demand.

TSMC is fabricating Nvidia’s Blackwell GPUs and increasing AI chip production capacity to meet demand. Nvidia anticipates a 65% revenue increase, supported by TSMC’s supply chain improvements. Other AI chip companies like Broadcom and Marvell are also experiencing sales growth, benefiting from the AI chip market’s expansion.

Analysts project a 29% earnings increase for TSMC in 2025, with revenue expected to grow at a compound annual rate of 20% for the next five years. TSMC is positioned for long-term growth, offering an attractive valuation for investors. Consider TSMC’s potential before it takes off in the market.

Read more: 1 Magnificent Artificial Intelligence (AI) Stock Down 25% to Buy Hand Over Fist Before April 17