TSMC ( (TSM) ) has risen by 7.46%. Read on to learn why.
TSMC, the world’s leading contract chip maker, has seen its stock price rise by 7.46% over the past week. This surge is primarily attributed to the company’s impressive revenue growth, driven by strong demand for its semiconductor products, particularly in the AI sector. TSMC reported a 42% year-over-year increase in sales for the first quarter of 2025, reaching T$839.3 billion ($25.6 billion), which has bolstered investor confidence and contributed to the stock’s upward momentum.
The company’s growth is further supported by favorable market conditions, as TSMC benefits from the ‘origin of imports’ rule, which exempts its Taiwan-manufactured chips from new U.S. tariffs. This strategic advantage has allowed TSMC to capitalize on the shifting dynamics in the semiconductor industry, as competitors like Intel face challenges due to increased tariffs on American-made products. Analysts have maintained a strong buy consensus on TSMC, with expectations of continued growth fueled by AI demand.
Despite global economic uncertainties and geopolitical tensions, TSMC remains optimistic about its future prospects. The company is expanding its presence in the U.S. with a $40 billion investment in a new factory in Arizona, aiming to mitigate risks associated with trade tensions and enhance its market position. As TSMC prepares to release its full Q1 earnings report, investors are keenly watching for further insights into the company’s growth trajectory and strategic initiatives.