Taiwan Semiconductor Manufacturing Co TSM inventory surged 14% year-to-date, beating the market significantly regardless of Washington’s tariff insurance policies and semiconductor sanctions solid a shadow over a sustained AI frenzy.
Throughout the identical interval, the PHLX Semiconductor Index, of which Taiwan Semiconductor can also be a constituent, generated 11% returns.
S&P 500 and NASDAQ Composite Indexes generated roughly 5% returns in the course of the interval.
Additionally Learn: Taiwan Semiconductor’s Affiliate Quick-Tracks Singapore Plant Spurred By Geopolitics
The important thing provider of Nvidia Corp NVDA and Apple Inc AAPL has generated 32% returns within the final three months, in comparison with 29% for PHLX Semiconductor, 10% for the S&P 500, and 16% for the Nasdaq Composite.
Dangers
The Trump administration has additionally explored plans to finish waivers for chipmakers to forestall the export of American know-how to China.
Aside from the geopolitical threat, TSMC can also be inclined to forex threat because of excessive U.S. greenback publicity. The corporate’s abroad unit, Taiwan Semiconductor Worldfaces a forex threat – the Taiwanese greenback is strengthening in opposition to the now risky and weakening U.S. greenback.
TSMC World Ltd. is making ready to lift $10 billion by issuing new shares to handle forex volatility and preserve capital flexibility. This marks the third such fairness transfer since 2024, and it’s the largest to this point. The timing coincides with the current appreciation of the Taiwan greenback.
TSMC’s CEO C. C. Wei knowledgeable shareholders this month that the stronger forex has lowered the agency’s working margin by a number of share factors.
Earnings and Market Share
In April, Taiwan Semiconductor reported first-quarter internet gross sales of $25.53 billion (839.25 billion New Taiwanese {Dollars}), up 41.6% year-over-year, topping the analyst consensus estimate of $23.92 billion. Nonetheless, the online gross sales declined 3.4% Q/Q. In U.S. greenback phrases, income progress was 35.3% Y/Y and down by 5.1% Q/Q.
Taiwan Semiconductor’s AI know-how moat helped it broaden its quarterly gross margins by 572 bps to 58.8%.
In March, Taiwan Semiconductor chief C.C. Wei introduced a further $100 billion funding in U.S. chipmaking (on prime of the $65 billion introduced in April 2024).
The chipmaker explored commercializing its superior 2-nanometer course of utilizing gate-all-around (GAA) know-how within the second half of 2025.
In keeping with analyst Ming-Chi Kuo, Apple is anticipated to equip its upcoming iPhone 18 lineup with Taiwan Semiconductor’s superior 2nm A20 chip.
Intel Corp INTC and Superior Micro Gadgets AMD have additionally chosen Taiwan Semiconductor to fabricate chips utilizing the identical cutting-edge 2nm course of.
Taiwan Semiconductor grew its market share to 67.6% within the first quarter of 2025 from 67.1% within the earlier quarter, Focus Taiwan cited Trendforce. Samsung Electronics Ssnlf held a 7.7% world market share, down from 8.1% Q/Q.
The highest 10 contract chipmakers reported $36.4 billion in gross sales within the first quarter, down ~5.4% Q/Q. They account for ~97% of the worldwide whole, up from 96% within the fourth quarter.
Analyst Opinion
Taiwan Semiconductor has a consensus value forecast of $210.8 primarily based on the scores of 6 analysts. The excessive is $270, issued by Needham on July 1, 2025. With a median value forecast of $255 between Needham, Susquehanna, and Barclays, there’s an implied 12.90% upside for Taiwan Semiconductor from these most up-to-date analyst scores.
Final week, Cathie Wooden-led Ark Make investments acquired 65,102 shares of Taiwan Semiconductor.
Value Motion: TSM inventory traded greater by 0.33% at $225.43 premarket on the final test on Wednesday.
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