TSM rides AI chip demand to display strong growth despite volatility and rising geopolitical risks.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Taiwan Semiconductor Manufacturing Company Ltd. (TSM) is looking like an interesting pick from a technical perspective, as the company reached a key level of support.
TSMC, or Taiwan Semiconductor Manufacturing Company (NYSE: TSM) is set to pay out its quarterly dividend on July 10, 2025.
According to Counterpoint, the foundry market grew by 13% in Q1. This is a much slower growth compared to TSM's 35% YoY revenue surge over the same quarter. The company's aggressive R&D investment and rapid innovation, such as the upcoming 2nm chips, reinforce its competitive moat and pricing power. TSM offers a rare blend of strong growth and sustainable dividend increases, with a 14% dividend CAGR over the past decade and impressive operating leverage.
Taiwan Semiconductor Manufacturing Company bets on global fabs to meet AI demand and ease supply risks, but margin dilution can challenge profitability.
Shares of Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE: TSM), AKA TSMC, hit an all-time high of $226.40 earlier this year.
Key Points in This Article: The AI market is set to skyrocket to $3.68 trillion by 2034, fueling massive gains for early leaders exploiting the technology.
The U.S. is reportedly weighing canceling waivers that allow some global chipmakers to send American technology to China, according to The Wall Street Journal. A Commerce Department official told Samsung Electronics, SK Hynix and Taiwan Semiconductor this week that it may cancel the waivers allowing U.S. chip-making technology into their Chinese factories, the Journal reported.
Lam Research outshines Taiwan Semiconductor Manufacturing with strong AI-driven demand, fewer risks and higher earnings growth expected in FY25.
Recently, Zacks.com users have been paying close attention to TSMC (TSM). This makes it worthwhile to examine what the stock has in store.
TSMC's CoWoS margins now exceed 60–65%, with packaging volume expected to triple by year-end FY 2025. AI and HPC now contribute 59% of revenue, up from 46% YoY, driving structural re-rating potential. Advanced nodes (7nm and below) made up 73% of wafer revenue in Q1 FY 2025, including 22% from 3nm.