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TSMC Soars 3.46% on AI Demand, US Expansion

Mover TrackerFriday, May 2, 2025 5:52 am ET

1min read

On May 2, 2025, TSMC's stock rose by 3.46% in pre-market trading, reflecting strong investor confidence in the company's future prospects.

TSMC's recent performance has been bolstered by several key developments. morgan stanley has listed tsmc as a top pick, citing robust capital expenditures by major tech companies in the AI sector. This move underscores the strong demand for TSMC's advanced packaging technologies, particularly CoWoS, which is crucial for AI applications. Despite lowering its target price, Morgan Stanley maintains a "buy" rating, indicating a positive outlook for TSMC's future growth.

Additionally, TSMC has received approval from the U.S. Department of Commerce to supply certain mature technology products to Huawei. This development is significant as it allows TSMC to continue serving a major client, albeit with restrictions on advanced node products. The approval is seen as a strategic move to prevent Huawei from fully leveraging domestic supply chains, thereby maintaining a competitive edge for TSMC.

TSMC's strategic partnerships and expansions also contribute to its positive outlook. The company's collaboration with Siemens in semiconductor design and integration has yielded new advancements, with Siemens' software receiving certification for TSMC's latest processes. This collaboration is expected to drive innovation in AI, automotive, and other high-growth sectors.

Furthermore, TSMC's expansion plans in the U.S. are progressing steadily. The company is building its third fab in Arizona, with a commitment to invest $100 billion over the next four years. This investment not only supports domestic chip manufacturing but also positions TSMC as a key player in the global semiconductor industry.

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