Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) saw its stock rise by 3.49% on January 3, 2025, closing at $208.61, up from the previous close of $201.58. The stock opened at $204.10 and reached a high of $208.80 during the trading session. The increase in TSMC's stock price was driven by several positive developments, including advancements in its 2nm chip production at the Baoshan and Kaohsiung fabs, with demand for 2nm chips surpassing that of 3nm. This progress is crucial for maintaining TSMC's leadership in the semiconductor industry, as it prepares for mass production in 2026. Additionally, TSMC's plans to commercialize 4nm chips at its Arizona fab further bolster its growth prospects.
The stock's upward movement was also supported by Citigroup's analysis, which highlighted the potential for NVIDIA to become one of TSMC's largest clients by 2025, contributing up to 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%. The broader electronics sector in Taiwan also contributed to TSMC's stock performance, as the Taiex index showed resilience despite mixed signals from U.S. markets.