Chip manufacturing behemoth Taiwan Semi (TSM) is flirting with all-time highs reached earlier this month after delivering strong quarterly earnings results.
The earnings beat includes a healthy top and bottom-line beats along with bullish Q1 revenue guidance from the company’s management.
Taiwan Semiconductor supplies the chips used by most tech giants including Apple (AAPL) and NVIDIA (NVDA). The company’s strong customer base has consistently benefited from an unwavering demand for AI.
In 2024, revenue from AI accelerators (including AI GPUs, AI ASICs, and HBM controllers for training) more than tripled on a year over year basis. Looking forward to 2025, TSM anticipates much of the same. The company is forecasting revenue from AI accelerators to double off an excellent 2024 base year, reflecting a continuous appetite for the technology this year.
Taiwan Semi’s earnings and revenue were robust in the latest quarter, expanding by 55% yr/yr to $2.24 and 37% to $26.88 billion, respectively. The strong earnings beat and outlook attracted large volume buying on Thursday.
The earnings beat offered a positive view for the rest of the semiconductor sector on Thursday. Many companies like AMD (AMD), Applied Materials (AMAT) and Qualcomm (QCOM) have dropped to their 6-month lows as fears over semiconductor demand in 2025 have increased.
Each of those companies, apart from AMD, traded notably higher on Thursday.
As for Taiwan Semiconductor, shares are pressing to new high territory backed by a strong trend in the stock’s 50- and 200-day moving averages. Both trendlines are bullish.
The stock remains in a long-term bull market trend with a price target of $250.