11 Trending AI News and Ratings

4. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 158

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) produces a wide range of semiconductor devices, including AI-enabled solutions for high-performance computing, smartphones, automotive, and IoT applications globally.

Taiwan Semiconductor Manufacturing Co. (TSMC) exceeded revenue expectations for the October-December quarter, reporting a 39% increase to NT$868.5 billion (NT$1 = US$0.030), due to strong demand for AI hardware. TSMC’s revenue growth for 2024 reached 34%, surpassing its 30% target, as the company benefits from the global AI race, Bloomberg reported.

However, some investors are concerned about over-building and a lack of a major AI-driven application. TSMC’s reliance on Apple and its geopolitical challenges in 2025 may also impact its performance. Key areas to watch include the company’s advanced packaging capacity, US fab progress, and capital-spending plans for next year, the report stated. Bloomberg Intelligence Technology Industry analyst, Charles Shum said:

“The company’s gross margin is likely to expand to a two-year high of 58%, or more. On the upcoming earnings call, four areas merit attention: First, the outlook for CoWoS advanced-packaging capacity build and revenue, which is likely to give insight into the expected strength for AI chip demand in the coming 12-18 months. Second, progress on the US Arizona fab’s ramp-up, which is critical to meeting the onshoring chipmaking needs of Apple, Nvidia and others. Third, potential margin pressure from weaker demand in 7-, 16-nm and larger mature nodes.

Finally, capital-spending plans for 2025, which will signal TSMC’s confidence in the uptake of its next-generation N2 node.”