Huaxing Securities: TSMC's positive development momentum is expected to continue until the first half of 2025
Huaxing Securities analyst Colin Liu stated that Taiwan Semiconductor's gross margin in the third quarter exceeded expectations, indicating that the impact of rising production costs for 3-nanometer chips is easing, and this positive trend is expected to continue until the first half of 2025. The analyst predicts that Taiwan Semiconductor will raise prices at the beginning of 2025, and sustained high utilization rates will drive revenue growth next year. Huaxing Securities has raised its revenue expectations for Taiwan Semiconductor in 2024 to 2025 by 2%-10%
Huaxing Securities analyst Colin Liu wrote that Taiwan Semiconductor's gross margin in the third quarter was higher than expected, indicating that the adverse effects of rising production costs for 3-nanometer chips are easing. He added that this positive momentum may continue until the first half of 2025.
The analyst further stated that Taiwan Semiconductor is expected to raise prices at the beginning of 2025, coupled with sustained high utilization rates, which will be the main driver of revenue growth next year.
Huaxing Securities has raised its revenue expectations for Taiwan Semiconductor for the years 2024 to 2025 by 2%-10%, reflecting the company's confidence in the demand for artificial intelligence (AI) and the potential development in the leading chip sector.
Liu expects that by 2026, the pressure on gross margins from increased production of 2-nanometer chips will become more pronounced. Taiwan Semiconductor's latest closing price was reported at NTD 1085.00