{"id":78117,"date":"2025-10-16T09:50:09","date_gmt":"2025-10-16T09:50:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/78117\/"},"modified":"2025-10-16T09:50:09","modified_gmt":"2025-10-16T09:50:09","slug":"tsmc-raises-outlook-in-vote-of-confidence-for-ai-megatrend","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/78117\/","title":{"rendered":"TSMC Raises Outlook In Vote of Confidence for AI \u2018Megatrend\u2019"},"content":{"rendered":"\n

(Bloomberg) \u2014 Taiwan Semiconductor Manufacturing Co. (TSM<\/a>, 2330.TW<\/a>) hiked its projection for 2025 revenue growth for the second time this year, reinforcing hopes in the longevity of a global boom in AI spending.<\/p>\n

TSMC, the go-to chipmaker for Apple Inc. (AAPL<\/a>) and Nvidia Corp. (NVDA<\/a>), now foresees mid-30% growth in annual sales, up about a few percentage points from previously. The outlook hike was striking given Taiwan\u2019s biggest company last raised its guidance just three months ago, igniting a rally that\u2019s tacked on more than $260 billion to its market value.<\/p>\n

Most Read from Bloomberg<\/p>\n

The results underscore how TSMC remains one of the bigger beneficiaries of a spending spree on AI infrastructure that\u2019s expected to cross the $1 trillion mark in coming years. From OpenAI to Oracle Corp., industry leaders are racing to build the data centers that underpin the technology in the post-ChatGPT era. TSMC\u2019s higher projection followed a better-than-anticipated 39% jump in net income to NT$452.3 billion ($14.8 billion) in the September quarter.<\/p>\n

\"\" <\/p>\n

On Thursday, TSMC Chief Executive Officer C.C. Wei reiterated his industry was grappling with geopolitical uncertainty, and acknowledged how US sanctions have begun to close off swathes of China, the world\u2019s largest semiconductor arena. Businesses across the global semiconductor supply chain are bracing for disruptions after Beijing imposed curbs on rare-earth mineral exports \u2014 essential to most technology devices \u2014 and the US responded with additional tariffs and restrictions on software sales to the Asian nation.<\/p>\n

But Wei argued that AI demand would make up for that lost market. \u201cConviction in the AI megatrend is strengthening,\u201d he told analysts after outlining earnings. \u201cThe AI demand actually continues to be very strong, stronger than we thought three months ago.\u201d<\/p>\n

As the world\u2019s most advanced manufacturer of semiconductors, TSMC plays a dominant role in an AI investment frenzy with Nvidia at its heart. The US company makes the powerful accelerators vital to the training and operation of AI services like ChatGPT and Google\u2019s Gemini.<\/p>\n

\"\" <\/p>\n

Yet that investment rush, coupled with a rapid climb in tech stock valuations, has drawn comparisons to the dotcom bubble given the persistent absence of mainstream AI applications and services. TSMC is in constant touch with customers to try and map out future demand and plan for capacity expansion, Wei said.<\/p>\n

\u201cObviously there\u2019s some question marks about the China situation, from a number of different angles,\u201d Bloomberg Intelligence analyst Matthew Bloxham said. \u201cBut they seem very optimistic that even without China, there\u2019s very robust demand for their platforms.\u201d<\/p>\n

On Thursday, TSMC raised the lower end of its capital spending target for the year. Taiwan\u2019s largest company is now earmarking at least $40 billion for capacity expansion and upgrades in 2025, up from a floor of $38 billion previously.<\/p>\n

What Bloomberg Intelligence Says<\/p>\n

TSMC\u2019s raised full-year sales growth target to mid-30% confirms growth momentum for AI chips is unabated and suggests there\u2019s more room for the company to raise its 2- to 3-nm nodes price in 2026. Given TSMC\u2019s dominance in leading-edge processing nodes and 2.5D packaging, we believe this price increase can be in the 5-10% range.<\/p>\n

– Charles Shum, analyst<\/p>\n

Much of that will go towards building capacity. The company is constructing in the US in part to alleviate trade risks.<\/p>\n

It\u2019s pledged to invest $165 billion ramping up manufacturing in Arizona, part of a global expansion that also encompasses Europe and Japan.<\/p>\n

\u2014With assistance from Vlad Savov, Cindy Wang and Gao Yuan.<\/p>\n

Most Read from Bloomberg Businessweek<\/p>\n

\u00a92025 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"(Bloomberg) \u2014 Taiwan Semiconductor Manufacturing Co. (TSM, 2330.TW) hiked its projection for 2025 revenue growth for the second…\n","protected":false},"author":2,"featured_media":78118,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,343,344,1877,85,46,15996,54911,125,24989],"class_list":{"0":"post-78117","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-bloomberg","12":"tag-il","13":"tag-israel","14":"tag-spending-spree","15":"tag-taiwan-semiconductor-manufacturing-co","16":"tag-technology","17":"tag-tsmc"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/78117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=78117"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/78117\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/78118"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=78117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=78117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=78117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}