TSMC's Soaring February Shows The 'AI Boom' Is Still Here!

On March 10th, TSMC released its February 2025 revenue report. The report revealed that TSMC's February sales reached NT$260.01 billion, setting a new record for the same period in previous years, despite a month-on-month decrease of 11.3%. The year-on-year growth rate accelerated to 43.1%, up from 35.9% in the previous month.

The report also showed that TSMC's cumulative sales up to February amounted to NT$553.30 billion, a year-on-year increase of 39.2%, faster than the same period last year. Analysts generally expect TSMC's revenue to grow by approximately 41% this quarter.

Previously, TSMC issued a statement estimating that the losses caused by the Chiayi earthquake in the first quarter would reach around NT$5.3 billion, with some wafers in production being affected.

Some analysts point out that as major AI companies continue to aggressively expand their infrastructure, TSMC's revenue is expected to maintain rapid growth. It is projected that by 2026, revenue from its N2 node process could reach $30 billion, accounting for 22.5% of total revenue.

Earlier this month, TSMC announced plans to invest an additional 165 billion. Analysts believe, for TSMC, agreeing to produce more chips in the United States could help avoid the potential tariffs of up to 50% that Trump had hinted at.

The threat of tariffs would not only pressure TSMC to share costs with its American customers but, more importantly, could lead to the revocation of an agreement reached during the Biden administration. This agreement involves Washington committing to provide over $6 billion in subsidies to TSMC's U.S. factories.

As a result, since the beginning of this year, TSMC's U.S. stock price has fallen by more than 12%. However, analysts believe that TSMC's advanced technology and strong market position make it a solid long-term investment, and the recent stock price correction may present a buying opportunity.