tsmc stock surges on ai boom: analysts predict continued growth

2025-03-10 tsmc

Taipei, Monday, 10 March 2025.
taiwan semiconductor manufacturing company’s stock receives an upgrade to ‘one’ rating. this follows a surprise surge in revenue linked to artificial intelligence. analysts are now more confident in tsmc’s potential for growth. the ai market expansion is expected to drive further gains. tsmc’s february revenue reached t$260.01 billion. that is a 43.1% increase from february 2024. this suggests a promising investment opportunity.

revenue growth and market expectations

TSMC’s revenue in January 2025 reached T$293.29 billion, a 35.9 percent increase year-over-year and a 5.44 percent increase month-over-month [4]. In 2024, TSMC’s stock price surged by 81 percent, significantly outperforming the Taiwan Weighted Stock Index, which rose by 28.5 percent [5]. TSMC’s fourth-quarter revenue in 2024 surpassed market expectations, driven by the rapid growth in artificial intelligence demand [5]. The company’s revenue for october to december 2024 reached T$868.4 billion, or approximately $26.36 billion [5].

ai demand and manufacturing capacity

TSMC is a major supplier to Apple and Nvidia, putting it at the forefront of the booming AI sector [5]. TSMC’s US plant capacity is fully booked until the end of 2027 [6]. Despite expanding investments in the US, it is projected that Taiwan will still account for over 80 percent of TSMC’s capacity by 2030 [6]. Intel plans to outsource approximately 30 percent of its wafer production to TSMC, adopting a multi-foundry approach [6].

broader industry trends and tsmc’s outlook

The semiconductor industry experienced substantial growth in 2024, primarily fueled by increased demand for AI-related hardware [3]. Broadcom’s Q1 revenue reached $14.92 billion, marking a 25 percent year-on-year increase [6]. TSMC anticipates that its first-quarter revenue will be near the lower end of its $25 billion to $25.8 billion guidance range [4]. The company expects its first-quarter operating profit margin to be between 46.5 percent and 48.5 percent [4].

Bronnen

AI revenue Stock upgrade