Revenue Growth and Market Position
The Taiwan Semiconductor Manufacturing Company (TSMC) is currently demonstrating remarkable development. The company has benefited from significant revenue growth, with an increase in annual revenue of 43% in February 2025, despite a monthly decline of 11%. Analysts expect that TSMC will continue to maintain its strong market position, particularly in the context of growing demand for AI technologies. Over 90% of the most advanced AI chips are manufactured by TSMC, making the company an indispensable player in this sector.
Regulatory Advantages
In addition to revenue growth, TSMC also benefits from favorable regulatory frameworks in international trade. Despite geopolitical tensions between the USA and China, TSMC has taken strategic measures to mitigate potential risks, including investments in US manufacturing to lessen the impact of potential tariffs.
Analyst Ratings and Price Forecasts
Although Citi recently lowered its price target to 1,050 TWD, the buy recommendation remains. Analysts like Bernstein continue to see positive future prospects for TSMC due to its technological leadership and planned investments in new manufacturing facilities. JPMorgan has also issued a positive assessment and sees growth potential.
In conclusion, TSMC’s stock shows strong growth prospects supported by internal and external factors, making it an attractive option for investors interested in the semiconductor industry.