TSM Stock

Taiwan Semiconductor Manufacturing, known as TSMC, is a strong stock that has been performing well in the market, even during recent downturns. Currently, it has increased by 79% in the last year, significantly outperforming the S&P 500, which has risen by 23%. I believe TSMC can continue to grow, despite some negative feelings surrounding AI stocks lately.

There are plenty of artificial intelligence (AI) stocks that have performed much better than the market in recent years. Despite a recent drop in tech stocks due to increased competition from a more affordable AI model developed by DeepSeek in China, many AI stocks continue to significantly outperform the market.

Taiwan Semiconductor Manufacturing Company Limited saw its stock drop even after reporting good quarterly results, following news that a Chinese AI firm has developed a more efficient AI model, which is expected to increase the demand for AI chips. The demand for AI chips is still very high, as major tech companies like Meta Platforms and Microsoft are planning to invest heavily in AI infrastructure. TSM's stock is currently undervalued, trading at just 19 times its expected earnings, and it has better growth potential compared to other AI-related stocks.

Rob Sechan, the CEO of NewEdge Wealth, appears on CNBC's "Halftime Report" to discuss his reasons for increasing his investment in Taiwan Semiconductor.

We have just released a list of the 35 Most Important AI Stocks according to Coatue. In this article, we will examine how Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) compares to the other top AI stocks on Coatue's list. The rise of artificial intelligence (AI) has significantly boosted the technology sector, leading to increases in major market indices.

Believing everything a management team says without question can lead to mistakes in investing. A good approach is to compare their past predictions with the actual outcomes to build trust in their statements. This method may not work for new management teams, but it is more reliable for those that have been around for a while.

Even with recent concerns and a 13% decline in stock prices, I think TSMC's demand for AI and its long-term growth potential are still strong, making it a good investment choice. TSMC's Q4 2024 results showed a remarkable revenue increase of 38.8% compared to last year and a 57% rise in earnings per share, highlighting its strong financial position. Important developments for 2025 include the start of volume production at Arizona Fab 21, early production on the N2 node, and high demand for N3 in smartphones, all of which support TSMC's growth plans.

TSMC is a leading company in advanced semiconductor manufacturing, particularly for AI accelerators, which gives it strong growth potential and pricing strength. Its partnerships with major companies like Apple and NVIDIA help boost its technology and revenue, especially in AI and high-performance computing. Although there are challenges such as geopolitical issues and high costs, TSMC's long-term goals and market position make it an attractive investment option.

Taiwan Semiconductor Manufacturing Company (TSMC) announced strong earnings for the fourth quarter of 2024, with net sales increasing by 37% compared to the previous year and gross margins at 59%, thanks to the high demand for AI chips. TSMC's leading position in the market and its ability to set prices make it a favorite choice for investors in AI, with a profit multiple of 22.5 times. The company also expects a 35% year-on-year sales growth in the first quarter of 2025, suggesting ongoing strong demand for AI chips and possible growth in profit margins.