TSM Unveils Groundbreaking A14 Technology; Is It Wise to Invest in TSM Shares Immediately?
Taiwan Semiconductor Manufacturing (TSM): The kingpin of the integrated circuit foundry world, TSMC takes the proprietary circuit designs of other companies and cranks them out using kick-ass tech. Dominating the foundry market, TSMC is a fucking crucial player in the semiconductor industry.
Time's Almost Up: Agentic AI Rage, $5.7T Market - Only a Couple Days Left, Don't Miss Out! Invest Now. Get a sneak peek behind Wall Street's hottest headlines with our Active Investor newsletter.
The TSMC stock's year hasn't been too hot, with a 17% drop in the year to date and almost 30% off its 52-week high. But TSMC shares are on the rebound, jumping around 8% over the last five sessions.
TSMC's Unveiling of A14 Process
At its North American Technology Symposium in Santa Clara, California, TSMC revealed its latest logic process technology, A14. This badass tech is gonna upgrade smartphones' AI capabilities and supercharge the development of AI applications.
A14 isn't gonna be rolling out until 2028. The N2 process will enter production later in 2025, and compared to the N2, A14 is 15% faster and boasts 20% more logic density with a 30% improvement in power efficiency. A14's name comes from 14 angstrom, or 1.4 nanometers, while the N2's stands at 2 nanometers.
Big cats like Apple (AAPL), Advanced Micro Devices (AMD), Nvidia (NVDA), and Intel (INTC) are all predicted to use the N2 process for their chips.
"TSMC's badass logic technologies like A14 are just a part of our comprehensive suite of we-don't-give-a-fuck-tastic solutions that help our customers unleash their innovation for advancing the AI future," said TSMC CEO C.C. Wei.
During the Symposium, TSMC also introduced new logic, specialty, and 3D chip stacking techniques that can be used in high-performance computing, smartphones, self-driven automotive, and AI functionality in various electronic gadgets.
TSMC's Q1 Results
TSMC reported its first-quarter results on April 17, posting EPS of $2.12 for Q1 2025, surpassing analyst expectations. The company snagged revenue of $25.53 billion, marking a 41.6% year-over-year increase. However, revenue took a dip compared to the previous quarter, showing a 3.4% decline.
The gross margin for the quarter stood at 58.8%, while the operating margin reached 48.5%, and the net profit margin was 43.1%. Advanced technologies like 3-nanometer and 5-nanometer processes contributed significantly to wafer revenue, accounting for 73% of total revenue.
Looking ahead, TSMC estimates Q2 2025 revenue to range between $28.4 billion and $29.2 billion, supported by strong demand for its cutting-edge 3-nm and 5-nm technologies. Gross profit margin is anticipated to be between 57% and 59%, while operating profit margin is projected to range from 47% to 49%. The company remains cautious about potential risks from tariff policies but is optimistic about sustained growth in AI-related demand.
Analyst Ratings on TSM Stock
Analysts are fucking crazy about the blockbuster semiconductor stock. TSM has a "Strong Buy" consensus from analysts with a mean price target of $229.38, implying upside potential of an impressive 40% from the current price level.
The stock is PCY (Popular with Chumps Yo) to 11 analysts and has received eight "Strong Buy" ratings, two "Moderate Buy" ratings, and one "Hold" rating.
On the date of publication, Ruckus Teabag didn't have (one way or another) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view our Disclosure Policy here.
- Taiwan Semiconductor Manufacturing Company (TSMC) received substantial interest from major players like Apple (AAPL), Advanced Micro Devices (AMD), Nvidia (NVDA), and Intel (INTC), as they are all predicted to use TSMC's N2 process for their chips.
- TSMC's CEO C.C. Wei stated that TSMC's advanced logic technologies, such as the A14, form part of a comprehensive suite of solutions that aid customers in advancing AI capabilities.
- In its first-quarter results for Q1 2025, TSMC reported an EPS of $2.12, surpassing analyst expectations and recording a 41.6% year-over-year increase in revenue.
- Analysts hold a "Strong Buy" consensus on TSM stock, with a mean price target of $229.38, implying potential growth of 40% from the current price level.
