TSMC Raises 2025 Outlook Amid Surging AI Demand, Stock Climbs 4%

Taiwan Semiconductor Manufacturing Company (TSMC) shares surged 4% after revising its 2025 revenue growth forecast upward to 30% in US dollar terms, up from prior mid-20% projections. The bullish adjustment reflects unrelenting demand for AI chips, propelling gains across semiconductor stocks including AMD and Nvidia.

CEO C.C. Wei dismissed speculation of slowing tech expenditures, confirming robust AI order momentum. The chipmaker's expansion strategy—including five new US fabs and a $100 billion Arizona investment—positions it to capitalize on the infrastructure buildout required for next-generation computing.

While TSMC's gross margins face headwinds from global capacity expansion costs, the company's technological leadership in advanced nodes remains unchallenged. The AI boom continues to eclipse supply capabilities, with Wei reiterating sustained supply-demand imbalances through 2025.