Taiwan Semiconductor Manufacturing Company (TSMC) saw its stock price surge by 5.25% on January 28, 2025, closing at $202.40, up from the previous close of $192.31. The stock opened at $195.65 and reached an intraday high of $202.84, with trading volume soaring to 30,461,021 shares, more than double the average daily volume. This significant price movement was driven by a combination of strong Q4-24 earnings and strategic plans for 2025. TSMC's Q4 results highlighted a robust performance, with 3nm technology contributing 26% to wafer revenue and gross margins climbing to 59%. The company also announced a capital expenditure plan of $38B-$42B for 2025, focusing on advanced nodes and AI-driven technologies, which bolstered investor confidence.
Despite initial market jitters caused by DeepSeek's development using less advanced hardware, analysts emphasized TSMC's critical role in AI infrastructure and its strong fundamentals. The selloff in semiconductor stocks, including TSMC, Nvidia, and AMD, was deemed disproportionate, with TSMC's leadership in semiconductor manufacturing remaining unchallenged. Analysts maintained a bullish outlook, citing TSMC's attractive valuation and growth prospects in AI and IoT. The company's ability to swiftly resume operations after a recent earthquake in Taiwan further reassured investors.