TSMC: My Top AI Pick For 2025

On the Pulse
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Summary

  • Taiwan Semiconductor Manufacturing Company Limited's December sales surged 58% YoY, driven by robust AI chip demand, indicating strong growth potential for 2025.
  • TSMC's dominant 60% market share and booming HPC sector position it as a top AI/semiconductor investment.
  • Despite geopolitical risks, TSMC's strong fundamentals and the low TSM stock valuation relative to peers make it a compelling buy.
  • Anticipated strong Q4 earnings and 29% profit growth in 2025 reinforce TSMC's promising risk/reward profile.

Robotic arm giving a CPU to another robot

luza studios

Last week’s release of unaudited December sales figures for Taiwan Semiconductor Manufacturing Company Limited aka TSMC (NYSE:TSM) is a strong indicator that the artificial intelligence rally has potential to continue unabated in 2025.

According to Taiwan Semiconductor

This article was written by

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A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and strive to provide readers with ample research and investment opportunities.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of TSM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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