Taiwan Semiconductor Manufacturing Company (TSM, Financial) saw a pre-market increase of 1.23%, reaching $188. This rise is attributed to the latest analysis by Morgan Stanley, which highlights the anticipated growth driven by strong demand for AI chips and outsourcing from integrated device manufacturers.
The report suggests TSM's revenue could experience a compound annual growth rate of 15% to 20% over the next five years. This projection is supported by an expected increase in TSM's gross margin, potentially rising slightly to 55.5% in the fourth quarter, up from 55% in the third quarter. Key contributors to this margin growth include robust AI chip demand and increased production of Apple's 3-nanometer chips.
Looking ahead, TSM could maintain a gross margin of around 55% from 2025 onwards, particularly following successful price adjustments.
