TSMC Rides AI Boom Amid Geopolitical Risks, Analysts See Upside Potential

Taiwan Semiconductor Manufacturing Company, trading under the symbol TSM, has seen significant growth driven by strong demand for artificial intelligence (AI) applications. As of January 22, 2025, the stock price climbed to two hundred twenty-three dollars and twenty cents, with a trading volume of fifteen million two hundred sixty-five thousand four hundred nineteen shares. This is slightly lower than the trading volume of sixteen million five hundred forty-two thousand five hundred ninety-five shares on January 17, 2025.Recent news highlights the company's robust performance, with a thirty-three point nine percent rise in net sales for 2024, exceeding its revenue forecast. This growth is primarily attributed to the increasing demand for AI technology. However, the company faces challenges from US tech restrictions on China and potential tariffs from the upcoming US administration.Major analysts have updated their price targets, with Barclays setting a target of two hundred fifty-five dollars, expecting a nineteen point four two percent upside within twelve months. The consensus price target among six analysts is two hundred three dollars and eighty cents, indicating a potential upside.The company's focus on research and development has enabled it to stay ahead in process technology, attracting high-profile customers in the tech industry. The AI boom has positively impacted TSMC's other business segments, such as high-performance computing chips used in data centers and AI applications.Despite its dominant position, TSMC faces increasing competition from major players like Samsung and Intel, who are investing heavily in advanced manufacturing processes. Geopolitical factors, including tensions between China and Taiwan, and the push for semiconductor supply chain diversification by various countries, pose long-term risks to TSMC's market position.Overall, TSMC's strong financial performance, technological leadership, and continued demand for AI-related chips position the company for strong future growth. However, it must navigate complex regulatory environments and potential competition to maintain its market share.