Taiwan Semiconductor Manufacturing (TSM) is gaining ground on Thursday after releasing its first-quarter results. The company’s share price rose 0.9% as of 3 p.m. ET, with earlier fluctuations reaching as high as 3.8%.
Despite falling short of market expectations in terms of sales, TSMC’s earnings exceeded forecasts. The semiconductor leader reported a per-share earnings of $2.12 on sales of $25.53 billion, surpassing the average analyst estimate of $2.06 and revenue targets. Revenue grew 35.3% year-over-year.
TSMC’s product mix showed strong momentum for 3nm chips and AI-related semiconductors, which suggests a promising near-term outlook. The company’s CEO, C.C. Wei, also addressed recent rumors about potential talks of joining Intel’s semiconductor foundry business.
However, TSMC’s business remains exposed to significant geopolitical risks due to its crucial role in global supply chains and the AI competition between the US and China. As a result, shares are likely to experience near-term volatility.
Key data points:
– Per-share earnings: $2.12
– Sales: $25.53 billion
– Year-over-year revenue growth: 35.3%
Source: https://www.fool.com/investing/2025/04/17/why-taiwan-semiconductor-manufacturing-stock-is-cl