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TSMC Earnings Are Coming. AI Chips Should Drive Growth Despite Tariff Fears. - Barron's

1. TSMC is set to report earnings with strong AI chip growth expectations. 2. Analysts predict TSMC's profit to rise 50% year-over-year, reaching $12.65 billion. 3. Gross margins expected to decline from 58.8% to 55%-56% amid rising costs. 4. Tariff exemption for semiconductors is currently in place, but investigations continue. 5. TSMC is building three new U.S. chip plants, investing $165 billion by 2028.

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FAQ

Why Bullish?

Positive earnings forecasts and growth in AI chip sector enhance market confidence. Historical patterns show similar earnings boosts have led to upward price movement in TSM.

How important is it?

The article outlines critical upcoming earnings that likely influence investor sentiment and stock performance significantly.

Why Short Term?

Earnings announcements can lead to immediate market reactions, as seen in past quarters when positive results significantly uplifted stock prices.

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