10 High Growth Semiconductor Stocks That Are Profitable Heading into 2025

2) Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

5-year Sales Growth: ~22.02%

TTM net income: $35,710.5 Million

Number of Hedge Fund Holders: 158

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures, packages, tests, and sells integrated circuits and other semiconductor devices. Bernstein analysts gave a positive outlook on the company’s shares, reiterating their “Outperform” rating and a price target of $258.00. The firm’s analysts lauded Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s strong positioning in the semiconductor industry, mainly in the data-center AI sector, which can become a significant growth driver through 2025.

As per Bernstein, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is expected to benefit from the growing demand for high-bandwidth memory (HBM), which can tighten the capacity for mainstream memory production. The analysts at the company expect a positive shift in the memory sector around the middle of the year, courtesy of strong AI and HBM demand. Notably, AI has emerged as a significant growth driver for the company, with strong performance anticipated to continue into 2025. In Q1 2025, the company expects its business to be impacted by smartphone seasonality, which can be partially offset by continued growth in AI-related demand.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) expects revenue of between US$25.0 billion and US$25.8 billion in Q1 2025. Wedgewood Partners, an investment management company, released its Q4 2024 investor letter. Here is what the firm said:

“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was another top contributor to performance during the quarter and for the year. The Company’s earnings growth dramatically accelerated compared to last year as the Company’s wafer fabrication and packaging volumes soared in 2024. In addition, the Company customer prices rebounded in the face of more normalized capital expenditures. The Company maintains a near-monopoly in the fabrication of nearly every new AI accelerator brought to market over the past two years. They continue investing tens of billions to build and fill future capacity with orders for what seems to be insatiable hyperscale demand for accelerated computing. The stock ended the year trading at a consensus forward earnings multiple that is several points lower than large cap growth benchmarks, despite the Company’s dominant position in the most important industry that is driving one of the largest technological shifts in a generation.”