22 JAN 2025 · Taiwan Semiconductor Manufacturing Company, the world's leading semiconductor foundry, has been riding a wave of growth driven by artificial intelligence and advanced technology nodes. As of January 17, 2025, the stock price of TSM is $211.50, with a trading volume of 16,542,595 million shares. This is a significant increase from its low of $59.43 in the last three years.
Recent news highlights the company's strong performance, with a 33.9% rise in net sales for 2024, driven by strong demand for AI technology. TSMC forecasts a 58% rise in fourth-quarter profit, also driven by AI chip demand. However, the company faces challenges from US tech restrictions on China and potential tariffs from the upcoming US administration.
Major analyst updates include a price target of $255 by Barclays, issued on January 17, 2025, indicating a possible 19.42% upside. The consensus price target among six analysts is $203.8, with the high being $255 and the low being $89. The three most recent analyst ratings were released by Barclays, Needham, and Barclays, with an average price target of $240, suggesting a 12.40% upside.
TSMC's financial performance has been impressive, with a "beat and raise" scenario in the fourth quarter of 2024, achieving remarkable revenue growth of 33.89% and generating $88.1 billion in revenue over the last twelve months. The company's growth projections for 2025 are higher than previously anticipated, reflecting the strong demand for its advanced manufacturing processes.
The company's dominant position in the semiconductor industry is primarily due to its technological leadership, consistently developing and implementing advanced manufacturing processes. This advantage has been crucial in attracting and retaining high-profile customers in the tech industry, including major smartphone manufacturers and AI chip designers.
However, TSMC faces increasing competition from major players like Samsung and Intel, who are investing heavily in advanced manufacturing processes. Geopolitical factors, such as tensions between China and Taiwan, and trade tensions between the US and China, also pose risks to TSMC's market position.
Overall, TSMC's strong financial performance, technological leadership, and demand for AI-related chips position the company for continued growth. However, investors should be aware of the potential risks and challenges in the semiconductor industry.