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Why TSM’s Stock is Making Headlines?

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Written by Jack Kellogg Reviewed by Tim Sykes Fact-checked by Ellis Hobbs
Updated 4/17/2025, 9:18 am ET 7 min read
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Taiwan Semiconductor Manufacturing Company Ltd. stocks have been trading up by 2.71 percent amid positive investor sentiment.

Key Developments Impacting TSM

  • Daiwa recently upgraded Taiwan Semiconductor Manufacturing (TSMC) to Buy, shifting from its previous rating of Outperform. This change reflects optimism about future growth.
  • Taiwan’s President Lai Ching-te is proposing tariff negotiations with the U.S., which could eliminate trade barriers, thereby benefiting electronics sectors, including TSMC, who may boost U.S. investments.
  • TSMC is taking a 20% stake in a joint venture with Intel, enhancing its chipmaking capabilities while sharing technological expertise and providing personnel training.
  • TSMC plans a significant 30% price hike on its U.S. 4nm chip production, leading to potential upstream effects on major tech clients such as Apple and Nvidia.
  • The anticipation of TSMC’s next earnings report holds significance amid ongoing tariff disputes and changes in capital expenses, shaping expectations for the semiconductor industry’s outlook.

Candlestick Chart

Live Update At 08:18:25 EST: On Thursday, April 17, 2025 Taiwan Semiconductor Manufacturing Company Ltd. stock [NYSE: TSM] is trending up by 2.71%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

TSMC’s Financial Performance: A Quick Overview

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Taiwan Semiconductor Manufacturing Company Ltd. has showcased robust growth in its latest financial earnings. TSMC reported a striking 46.5% year-over-year jump in its March revenue, amounting to NT$285.96 billion (approximately $8.70 billion), marking a 10% increase from February. Quarter one revenue also soared, with a remarkable gain of 41.6% year over year. The financial uplift is attributed to TSMC’s strategic advances and partnerships in the semiconductor sector, positively influencing its profitability margins and redefining investor expectations.

Examinations of key ratios further demonstrate TSMC’s financial health, with a pretax profit margin firmly positioned at 42.3%. Consider TSMC’s enterprise value standing at a colossal $815.98 billion and a price-to-sales ratio of 12.22, painting a picture of its valuation in the tech landscape. The leverage ratio of 1.6 suggests a balanced approach in managing financial risk against asset utilization, emphasizing effective management strategies.

The flow of strategic costs and investments is evident in TSMC’s balance sheet, revealing total assets estimated at $5.53 trillion. The supplier’s careful capital management, highlighted through retained earnings of approximately $2.82 trillion, supports ambitious ventures and expansions. Investors might glean confidence from facilities expansion, like TSMC’s Arizona plant, boosting their footprint in the United States market and exploring advanced 2-nanometer technology.

The collaborative anticipation surrounding TSMC’s reported earning momentum directly impacts industry giants tech-output evaluations. Their assertive engagement through price hikes in this bustling chip space and revenue acceleration is expected to place TSMC favorably amid looming industry challenges.

More Breaking News

Impact of Recent News on TSMC

Joint Venture with Intel:

TSMC has set the tech world abuzz with its impressive 20% stake acquisition in a joint venture with Intel. This monumental agreement solidifies TSMC’s position as a leading global player in semiconductor manufacturing. By sharing cutting-edge chipmaking technology and training Intel personnel, TSMC aims to optimize operational efficiencies and foster innovation. Analysts expect this strategic partnership to drive significant growth and profitability for both companies, while capturing a larger market share in the booming demand for advanced microchips. The news has invigorated investor confidence, resulting in a positive surge in TSMC’s stock value.

Tariff Negotiations with the U.S.:

Taiwan’s President Lai Ching-te has introduced a bold vision of potential “zero tariffs” in future trade negotiations with the United States. Aimed at removing barriers that stall industry advancement, this move could accelerate TSMC’s plans for increased investment in the U.S. market. Anticipation around new alliances across electronics, petrochemicals, and natural gas sectors is energizing stakeholders, with TSMC positioned at the forefront. Reducing trade obstacles is expected not only to bolster TSMC’s financial growth but also augment Taiwan’s geopolitical trade standing.

Price Hike Implications:

TSMC’s strategic decision to implement a 30% hike on its 4nm chip production in the United States stems from an imbalance of supply and demand. In a highly competitive market landscape, this decision will directly affect major companies like Apple, Nvidia, and AMD. Such price adjustments might lead clients to reconsider their budgeting or look for alternative sourcing strategies, potentially challenging intermediary businesses. Nevertheless, TSMC anticipates harnessing this opportunity to maximize profitability and advance their innovative services amidst a rapidly evolving technological scene.

Conclusion

Taiwan Semiconductor Manufacturing Company Ltd. is striding ahead with impressive financial results and strategic decisions that emphasize its commitment to innovation and partnership in the semiconductor arena. Recent developments in tariff negotiations and the joint venture with Intel are helping solidify TSMC’s global standing while promising enhanced collaboration, trading opportunities, and revenue growth. As millionaire penny stock trader and teacher Tim Sykes says, “Small gains add up over time; focus on building wealth gradually, not chasing jackpots.” Navigating a flourishing market hampered by challenges, TSMC is exhibiting resilience, spurring industry buzz with its price hike strategy and commercial tenacity. As these dynamics unfold, the semiconductor giant’s stock enjoys renewed trader interest, positioning TSMC for continued progress and prosperity in technological evolution.

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Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”

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