TSMC (TSM, Financial) saw its stock surge nearly 5%, reaching a record high of $218.10. Goldman Sachs released a report predicting that TSMC's revenue will grow by 26.8% this year, compared to last year's 29.4% increase. This growth is driven by strong demand in advanced process nodes, particularly in the AI sector.
Goldman Sachs also noted that TSMC's competitive position is improving as Samsung and Intel (INTC) face challenges in transitioning to advanced process nodes. As a result, prices for TSMC's 3nm and 5nm chip nodes are expected to rise by mid-to-high single digits, while the cost of advanced ARVR packaging technology (CoWoS) may increase by 10%.
In light of these price adjustments, TSMC's gross profit margin is projected to rise to 59.3% this year, up from 56.1% last year.
