Global chip stocks have been under pressure this year due to investors' worries over AI infrastructure spending, competition, and U.S. tariffs. Attention now turns to Taiwan Semiconductor Manufacturing Company (TSM, Financial), with the company's upcoming earnings report in focus. Investors are particularly interested in TSMC's capital expenditure plans, insights on AI chip demand, and strategies to handle the fluctuating U.S. tariff policies.
TSMC's earnings could show a 54% profit surge. However, Gary Tan, a portfolio manager at Allspring Global Investments, emphasized the importance of the company's capital expenditure plans and profitability outlook. He believes TSMC is well-positioned to pass on rising costs to its customers.
This year has seen TSMC's stock face pressure due to tariff threats, experiencing one of the worst starts in at least 30 years. The market is keenly observing how the company will navigate these challenges.
