TSM Stock Rises on AI Revenue Growth Prospects

Jan 03, 2025

TSMC (TSM, Financial) saw its stock rise by 2.07% previously and continued to gain 0.76% in pre-market trading, reaching $203.12. Analysts from Citigroup have highlighted that by 2025, NVIDIA could become one of TSMC's largest clients, potentially contributing 20% of its revenue. This development is expected to significantly boost TSMC's AI-related income.

In addition to NVIDIA, the growth of custom AI chips (ASIC) over the next two to three years is also anticipated to support TSMC's business expansion. Citigroup forecasts that TSMC's revenue growth rate could reach 20%-25% in 2025, with a gross margin peaking at 50%.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

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