Taiwan Semiconductor (NYSE:TSM) earnings on Thursday will test the recent stock market correction.
TSM – Daily Chart
The chart of TSM highlights a slowdown in the stock price from the all-time highs above $210. Support comes in at the previous high of $193.
Taiwan Semiconductor Manufacturing Company, which is the largest global producer of advanced chips, is expected to report a 58% jump in its profit in its Q4 numbers on Thursday due to surging demand.
TSM’s clients include Apple and Nvidia, and the company has benefited from the boom in AI. But the Taiwanese company now faces headwinds from US government export bans on China and uncertainty about President-elect Donald Trump’s incoming tariff plans.
TSMC is set to report a net profit of T$377.95 billion ($11.41 billion) for the quarter to December 31, according to a LSEG. That is compared to a 2023 fourth-quarter net profit of T$238.7 billion.
Brett Simpson at Arete Research said 2025 will be another year where TSMC’s growth is largely driven by AI.
“From the US government perspective, Arete is optimistic that TSMC can build a good relationship with the new administration, particularly given its new fab cluster in Arizona is the biggest foreign direct investment project in the US at present,” he added.
TSMC is spending billions of dollars on new global factories to diversify from China risk. One of those is a $65 billion spend in the US state of Arizona, though most manufacturing will remain in Taiwan. The impact of Trump’s tariffs remains to be seen how it affects the company.
On its last earnings call, TSMC management said capital expenditure was likely to be higher in 2025 than the previous, which was expected to be above $30 billion.
The capex number could be important as the company tries to hold onto the recent all-time highs.
