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Taiwan Semiconductor Raises 2025 Outlook, TSMC Stock Pops


by Jaxon Gaines
for Watcher.Guru
Taiwan Semiconductor Raises 2025 Outlook, TSMC Stock Pops

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Shares in Taiwan Semiconductor (TSMC) stock are up on Thursday after the world’s largest contract chipmaker raised its 2025 outlook. Taiwan Semiconductor forecasts sales growth of about 30% in US dollar terms this year, up from mid-20% previously. The move underscores the surging demand in AI over the last year, which has sent tech stocks like AMD, TSMC, and NVDA higher. For TSMC today, the stock has popped 4% in the last 24 hours.

In the last six months, TSMC’s stock has risen over 14%. Along with benefiting from the AI boom, the company has also thrived after announcing five new factories coming to the US. Chief Executive Officer C.C. Wei affirmed on Thursday that AI orders still run hot for Taiwan Semiconductor, seeking to dispel persistent speculation that tech firms may curtail spending. While he stressed that the underlying AI demand is strengthening, the uncertainty around the Trump administration’s tariffs merited caution.

Furthermore, Wei told shareholders last month that AI chip demand still outstripped supply, and reaffirmed an outlook for 2025 sales to grow in the mid-20% range in US dollar terms. Taiwan Semiconductor Manufacturing has pledged to spend another $100 billion ramping up manufacturing in Arizona, in addition to an expansion in Japan, Germany, and in native Taiwan.

How Will TSM Stock Perform in the Remainder of 2025

Looking ahead, TSM’s gross margins are expected to face pressure from overseas facility startup costs, with an anticipated decline from 58.8% to approximately 58% in the second quarter. Nevertheless, Taiwan Semiconductor maintained its full-year revenue growth forecast of approximately mid-20%, underscoring its confidence in sustained AI demand. The company is expected to increase sales from $87.88 billion in 2024 to $170.3 billion in 2027.

Billy Leung, investment strategist at Global X ETFs, believes that Taiwan Semiconductor (TSMC) is in a great position thanks to AI. “For investors, TSMC results again ease fears of an AI slowdown. Margins hold, demand outlook good, generally reinforces the AI buildout is still well underway.” Other companies like AMD and NVDA are also bound for great second halfs of the year, according to Leung.

Read the article at Watcher.Guru

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Taiwan Semiconductor Raises 2025 Outlook, TSMC Stock Pops


by Jaxon Gaines
for Watcher.Guru
Taiwan Semiconductor Raises 2025 Outlook, TSMC Stock Pops

Share:

Shares in Taiwan Semiconductor (TSMC) stock are up on Thursday after the world’s largest contract chipmaker raised its 2025 outlook. Taiwan Semiconductor forecasts sales growth of about 30% in US dollar terms this year, up from mid-20% previously. The move underscores the surging demand in AI over the last year, which has sent tech stocks like AMD, TSMC, and NVDA higher. For TSMC today, the stock has popped 4% in the last 24 hours.

In the last six months, TSMC’s stock has risen over 14%. Along with benefiting from the AI boom, the company has also thrived after announcing five new factories coming to the US. Chief Executive Officer C.C. Wei affirmed on Thursday that AI orders still run hot for Taiwan Semiconductor, seeking to dispel persistent speculation that tech firms may curtail spending. While he stressed that the underlying AI demand is strengthening, the uncertainty around the Trump administration’s tariffs merited caution.

Furthermore, Wei told shareholders last month that AI chip demand still outstripped supply, and reaffirmed an outlook for 2025 sales to grow in the mid-20% range in US dollar terms. Taiwan Semiconductor Manufacturing has pledged to spend another $100 billion ramping up manufacturing in Arizona, in addition to an expansion in Japan, Germany, and in native Taiwan.

How Will TSM Stock Perform in the Remainder of 2025

Looking ahead, TSM’s gross margins are expected to face pressure from overseas facility startup costs, with an anticipated decline from 58.8% to approximately 58% in the second quarter. Nevertheless, Taiwan Semiconductor maintained its full-year revenue growth forecast of approximately mid-20%, underscoring its confidence in sustained AI demand. The company is expected to increase sales from $87.88 billion in 2024 to $170.3 billion in 2027.

Billy Leung, investment strategist at Global X ETFs, believes that Taiwan Semiconductor (TSMC) is in a great position thanks to AI. “For investors, TSMC results again ease fears of an AI slowdown. Margins hold, demand outlook good, generally reinforces the AI buildout is still well underway.” Other companies like AMD and NVDA are also bound for great second halfs of the year, according to Leung.

Read the article at Watcher.Guru

In This News

Share:

In This News

Share:

Read More

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