tsmc stock boosted after ai revenue beats expectations

2025-04-16 tsmc

taipei, Wednesday, 16 April 2025.
taiwan semiconductor manufacturing company’s stock rating improved after a surprising increase in ai-related income. analysts believe earlier worries were excessive, creating a fresh investment opportunity. tsmc’s ai sector strength drives this upgrade. this is key for investors evaluating growth potential and stock value. the ai revenue surge signals a robust demand for tsmc’s advanced chip manufacturing capabilities. this development highlights the company’s pivotal role in the rapidly expanding ai market. investors are now reassessing tsmc’s prospects, considering its leading position in semiconductor production.

revenue outlook

Foreign investors predict tsmc’s second-quarter revenue will increase from 4% to 10% compared to the first quarter, surpassing typical seasonal levels [3]. Ubs Securities anticipates a 9% increase in tsmc’s q2 revenue, a notable rise from their previous estimate of 5% [3]. Concurrently, ubs Securities projects tsmc’s gross profit margin to improve from 58.5% in q1 to 58.8% in q2 [3]. These revised estimates reflect growing confidence in tsmc’s short-term operational performance, driven by strong demand and efficient production [3].

tariff impacts and market dynamics

President Trump’s decision to grant tariff breaks to major tech companies may positively influence market performance [1]. However, the White House reported that Chinese imports of us goods now face tariffs as high as 245% [3]. These tariffs and trade dynamics introduce uncertainty, impacting investment decisions in data centers and potentially affecting tsmc’s profitability and supply chain [5]. Morningstar analyst Phelix Lee cautioned that the imposition of industry tariffs could create uncertainty for investments in us data centers, which in turn, could negatively impact tsmc and its supply chain’s earnings [5].

amd’s collaboration with tsmc

Amd is set to commence chip production at tsmc’s arizona facility, signaling a significant step in us-based manufacturing [4]. Amd’s ceo, su zi-feng, confirmed readiness to start chip production at tsmc’s arizona plant, emphasizing increased ai server production in the us [4]. Su zi-feng also noted amd’s first 2-nanometer chip has achieved a major milestone, with the new generation server cpu venice being very successful [8]. This collaboration underscores the importance of tsmc’s advanced manufacturing capabilities for amd’s ai initiatives and supply chain resilience [4][8].

challenges and uncertainties

Despite positive ai revenue, tsmc faces internal and external challenges. Concerns have arisen regarding potential collaboration between tsmc and intel, with analysts questioning the strategic rationale due to differences in business models and technology [5]. Tsmc’s $100 billion investment in the us could potentially lower future gross margins [5]. Allspring global’s investment manager, gary tan, noted that while tsmc and asml’s valuations reflect global trade tensions, their financial reports for the next two quarters are still subject to downside risks [5].

analyst outlook

Analysts are closely monitoring tsmc’s and asml’s financial forecasts amidst us-china trade tensions and ai demand sustainability [5]. Morgan stanley anticipates tsmc’s 2025 revenue growth to potentially decrease to the lower end of the 20% range [5]. Deutsche bank suggests tsmc might withdraw its 2025 financial forecast altogether [5]. White oak capital’s investment director, nori chiou, highlighted increasing uncertainty in ai demand and policy volatility impacting long-term investments [5].

taiwan stock market impact

The taiwan stock market experienced a downturn, closing down 389.67 points, a 1.962 % decrease, at 19468.00 points [3]. Concerns over nvidia’s h20 chip restrictions contributed to this decline [3]. Despite this, on april 15, the taiwan stock market’s weighted average index closed up by 1.77%, reaching 19857.67 points with a turnover of ntd 295.936 billion [4]. These market fluctuations reflect the sensitivity of taiwanese stocks to global trade dynamics and specific chip restrictions [3][4].

Bronnen

revenue upgrade ai sector