To The Moon

Taiwan Semiconductor Manufacturing Company (TSMC, TSM) is staging an electrifying comeback, with its stock surging 11.93% to $180.90 on March 25, 2025, snapping a nine-week decline. As the world’s leading semiconductor foundry, TSMC is not just riding the wave of global tech demand—it’s setting the pace. From groundbreaking investments to cutting-edge technology, TSMC is poised for a massive rally, and I’m strongly bullish with a price target of $250 in the near term. Here’s why you should jump in now.

1. Technical Breakout Signals a Bullish Reversal

TSMC’s recent price action is a textbook bullish signal. The stock soared 11.93% in a single day, breaking above key short-term moving averages (MA5: $178.00, MA10: $176.22, MA20: $177.52) and approaching the 30-day moving average (MA30: $185.14). The chart’s “B” (buy) signals further confirm that momentum is shifting in favor of the bulls. After hitting a low of $167.91 in early March, TSMC has found strong support and is now eyeing higher resistance levels at $226.40 and $233.42. A break above $185.14 could ignite a rally toward $250, making this an ideal entry point for investors.

2. Massive U.S. Investment Bolsters Global Leadership

On March 3, 2025, TSMC announced a staggering $165 billion investment in the U.S., expanding its Arizona operations with three new factories, two advanced packaging facilities, and a cutting-edge R&D center (TSMC Intends to Expand Its Investment in the United States to US$165 Billion). This move, one of the largest foreign direct investments in U.S. history, will create 4,500 high-tech jobs and solidify TSMC’s role in powering the AI revolution. By diversifying its manufacturing footprint, TSMC mitigates geopolitical risks tied to its Taiwan base, making it a more resilient and attractive long-term investment.

3. Stellar Financials Reflect Unstoppable Demand

TSMC’s latest Q4 2024 earnings report is a testament to its dominance. The company posted revenues of NT$868.46 billion, a 38.8% year-over-year increase, and net income of NT$374.68 billion, up 57.0% (TSMC Reports Fourth Quarter EPS of NT$14.45). With a gross margin of 59.0% and a net margin of 43.1%, TSMC’s profitability is unmatched in the semiconductor space. Advanced technologies (3nm and below) now account for 74% of wafer revenue, driven by insatiable demand for AI chips and high-performance computing. TSMC’s financial strength positions it to capitalize on the next wave of tech growth.

4. Apple Partnership Fuels Future Growth

Analyst Ming-Chi Kuo recently revealed that Apple’s upcoming iPhone 18 will feature TSMC’s 2nm chips, with trial production yields already exceeding 60%-70% (Kuo: iPhone 18 Models Will Feature 2nm Chips). Set for mass production in 2026, these chips will power Apple’s flagship devices, ensuring steady demand for TSMC’s cutting-edge technology. As Apple’s primary chip supplier, TSMC is perfectly positioned to benefit from the tech giant’s innovation cycle, further boosting its revenue and market share.

5. Geopolitical Risks Overblown, Growth Potential Undervalued

While TSMC’s Taiwan base raises concerns about geopolitical tensions, its U.S. expansion significantly reduces these risks. The global reliance on TSMC’s chips—often called the “silicon shield”—continues to provide a strategic buffer (The World Is Dangerously Dependent on Taiwan for Semiconductors). Moreover, at $180.90, TSMC’s stock is trading well below its recent high of $233.42, offering a compelling valuation for a company with such robust growth prospects.

Conclusion: A Screaming Buy with a $250 Target

TSMC is firing on all cylinders: a technical breakout, a transformative U.S. investment, stellar financials, and a pivotal role in Apple’s future. With AI and tech demand showing no signs of slowing, TSMC is set to soar to $250 in the near term. Don’t wait—this semiconductor titan is a screaming buy!