Taiwan Semiconductor Manufacturing Company (TSMC) is experiencing a rise in its stock price today, driven by positive developments in its AI revenue growth prospects. Analysts from Citigroup have highlighted that NVIDIA could become one of TSMC's largest clients by 2025, potentially contributing 20% of its revenue. This anticipated growth in AI-related income, along with the expansion of custom AI chips, is expected to significantly boost TSMC's business. Citigroup forecasts a revenue growth rate of 20%-25% for TSMC in 2025, with a gross margin peaking at 50%.
Additionally, TSMC's advancements in 2nm chip production are gaining momentum, with demand for 2nm surpassing that of 3nm. The company has completed limited risk production of approximately 5,000 wafers using its 2nm process at the Baoshan fab, and plans to roll out 2nm production at its Baoshan and Kaohsiung fabs. This progress in chip production, coupled with strong performance in the electronics sector, has contributed to the stock's upward movement.
TSMC's stock is currently priced at $206.33, reflecting a 2.36% increase from its previous close of $201.58 and a 1.09% rise from its opening price of $204.10.