ark invests bets big on tsmc amid ai surge

2025-05-23 tsmc

Taipei, Friday, 23 May 2025.
cathie wood’s ark etf has significantly increased its investment in taiwan semiconductor manufacturing, purchasing nearly 200,000 shares. this move signals strong confidence in tsmc’s long-term potential, particularly as tsmc partners with nvidia and foxconn to construct an ai supercomputer in taiwan. wood’s renewed interest follows easing us-china tensions and a growing demand for ai chips, positioning tsmc, a key supplier to tech giants, to capitalize on the ai wave. this strategic investment could influence market sentiment and drive up tsmc’s stock price.

ark’s tsmc investment details

Cathie Wood’s Ark Invest made significant moves by acquiring Taiwan Semiconductor Manufacturing Co. Ltd shares [5]. On May 20, 2025, Ark Invest purchased $8.4 million worth of TSMC shares across its Ark Innovation ETF (ARKK) and Ark Next Generation Internet ETF (ARKW) [1]. ARKK bought 27,099 shares, and ARKW added 16,172 shares [1]. A day earlier, Ark had already picked up $38.4 million worth of TSMC stock [1]. This substantial investment signals a shift from Ark’s previous stance of reducing its TSMC holdings since the third quarter of 2024 [6].

strategic ai positioning

Wood’s renewed interest in TSMC appears to be driven by easing US-China tensions and a growing demand for AI chips [1]. TSMC’s role as a key supplier to companies like Nvidia, Apple, Qualcomm, and AMD positions it to benefit significantly from the AI wave [1]. TSMC is partnering with Nvidia and Foxconn to build an AI supercomputer in Taiwan [4]. This collaboration further solidifies TSMC’s importance in advancing next-generation mobile and AI technologies, influencing investor confidence [5].

market impact and analysis

Analysts anticipate an approximate 11% upside for TSMC’s stock over the next 12 months, reflecting growing market confidence [6]. TSMC’s collaborations with Qualcomm and other original design manufacturers are expected to strengthen its market leadership [5]. Cristiano Amon, Qualcomm’s chief, highlighted TSMC’s crucial role in their supply chain, emphasizing the company’s pivotal position in the semiconductor industry [5]. Despite a slight dip earlier in the year, TSMC’s stock has shown resilience, recovering significantly from its April low [1][6].

tsmc’s manufacturing prowess

As the world’s largest semiconductor foundry, TSMC commands nearly two-thirds of the global market [7]. TSMC has demonstrated consistent revenue growth, with increases exceeding 38% in each of the past four quarters, including a 42% year-over-year jump in the most recent quarter [7]. TSMC’s net profit margin stood just above 43% in the first quarter [7]. The company is expanding its manufacturing capabilities, with the construction of its third chip plant in Arizona commencing in early May 2025 [7].

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