TSMC’s upbeat outlook fuels hopes for 2025 AI spending
Published On Jan 16, 2025, 2:18 AM
Taiwan Semiconductor Manufacturing Co. (TSMC) has provided a positive outlook, forecasting quarterly sales and capital expenditure that surpasses analysts’ expectations. This optimism stems from anticipated strong spending on AI hardware, projecting an increase of 19% in capital expenditure up to $42 billion and a revenue forecast of $25 billion for the upcoming quarter. TSMC's CEO indicated that despite challenges in the smartphone segment, new opportunities within AI and other technology segments are expected to drive growth, supporting expectations for a significant AI spending cycle in 2025. However, uncertainty remains due to geopolitical tensions affecting supply chains, particularly concerning US export controls on advanced chips to China.
Stock Forecasts
TSM
Positive
As TSMC leads the semiconductor industry with robust revenue projections influenced by the AI boom and continued demand from major tech customers like Nvidia and Apple, the outlook is quite positive. Despite concerns about AI applications and geopolitical risks, investment in TSMC is likely to remain strong due to its pivotal role in advancing AI technologies and manufacturing for smart devices. Investors might find TSMC a solid investment choice and an integral part of diversified tech portfolios.
Related News
TSMC logs record quarterly profit, sees hefty revenue growth in early 2025
Jan 16, 2025, 3:32 AM
TAIPEI (Reuters) -Taiwan Semiconductor Manufacturing Co logged record quarterly profit on Thursday and said it expects robust revenue growth in the first three months of the year as demand surges for chips used in artificial intelligence processing. While business is booming, TSMC does face headwinds from U.S. government technology restrictions on China with the Biden administration saying this week it would further restrict AI chip and technology exports. Though Taiwan and other close U.S. allies will be allowed unlimited access to U.S. AI technology, further curbs could impact demand from clients.
TSMC sales beat estimates in boost for AI’s outlook in 2025
Jan 10, 2025, 1:54 AM
(Bloomberg) -- Taiwan Semiconductor Manufacturing Co.’s quarterly sales topped estimates, reinforcing investor hopes that the torrid pace of AI hardware spending will extend into 2025. Most Read from BloombergWhat Robotaxis Brought San FranciscoNYC Condo Owners May Bear Costs of Landmark Green Building LawAmbitious High-Speed Rail Plans Advance in the Baltic RegionNYC’s Subway Violence Deters Drive to Bring Workers Back to OfficeDutch Central Bank Restores Amsterdam’s ‘Ugliest Building’The go-to
German dream of becoming a global chip superpower is fading fast
Jan 7, 2025, 12:00 AM
(Bloomberg) -- A vast empty field in Germany’s depressed east is where, for a moment, Olaf Scholz’s ambition to create a lasting economic legacy looked unstoppable.Most Read from BloombergNYC’s Subway Violence Deters Drive to Bring Workers Back to OfficeCan American Drivers Learn to Love Roundabouts?Don’t Shrink the BusIs This Weird Dome the Future of Watching Sports?NYC Congestion Pricing Takes Effect After Years of DelaysIt was on that plot outside Dresden that the chancellor, wielding a shove