Taiwan Semiconductor Manufacturing vs. ASML: Which Stock Will Outperform in 2025?
Both Taiwan Semiconductor Manufacturing (NYSE: TSM) and ASML (NASDAQ: ASML) play critical roles in the semiconductor industry. Taiwan Semiconductor, or TSMC for short, is the world's leading semiconductor contract manufacturer. Given the cost to build manufacturing facilities (called fabs or foundries), the high capacity utilization needed for foundries to run profitably, and the technological expertise needed, most semiconductor companies prefer to just design chips and hire a third party to manufacture them. This is where TSMC fits in.
ASML, meanwhile, makes the equipment that companies like TSMC use to manufacture semiconductors. While it has competitors, it is considered to have a near monopoly on extreme ultraviolet (EUV) lithography, which are highly complex machines used to create advanced chips.
This year, TSMC's stock has been the clear winner, up more than 90% as of this writing. ASML's stock, meanwhile, has fallen about 5% in 2024. Let's look at which stock could be set to outperform in 2025.
Source Fool.com
Taiwan Semiconductor Manufacturing Co. Ltd. ADR Stock
The stock is an absolute favorite of our community with 27 Buy predictions and no Sell predictions.
With a target price of 218 € there is a slightly positive potential of 17.08% for Taiwan Semiconductor Manufacturing Co. Ltd. ADR compared to the current price of 186.2 €.
