Which Stocks To Buy In 2025? TSMC Or Intel

The semiconductor industry is booming, driven by surging demand for artificial intelligence (AI) and high-performance computing (HPC). Global semiconductor sales hit a record-breaking $55.3 billion in September 2024, marking a 10.2% quarterly growth, according to the Semiconductor Industry Association—the fastest pace since 2016.

Amid this growth, Taiwan Semiconductor Manufacturing Company (TSMC) and Intel emerge as key players, though they follow markedly different trajectories. TSMC strengthens its position as an industry leader, while Intel faces challenges that test investor confidence.


Taiwan Semiconductor: The Dominant Force

TSMC, the world's largest contract chip manufacturer, commands over 60% of the market. Its advanced 3nm and 5nm process technologies have solidified its status as a vital supplier to tech giants like Nvidia and Apple. In Q3 2024, TSMC reported stellar results, with revenue climbing 39% and net income surging 54.2%, demonstrating exceptional operational efficiency.

  • Profit Margins: TSMC’s gross margin hit 57.8% in Q3, up from 43.4% two years ago, bolstered by strong pricing power and high utilization rates.
  • Future Prospects: With plans to increase prices for AI-related chips by 10% in 2025, the company is well-positioned for profitability.

On the global stage, TSMC continues to expand. Projects like its Arizona facility in partnership with Amkor Technology will boost its advanced packaging and testing capabilities to meet the demands of AI and high-performance computing markets.

Despite these strengths, challenges persist. TSMC’s reliance on AI infrastructure spending exposes it to potential market slowdowns. Geopolitical tensions, particularly with China, and uncertainties around U.S. trade policy add layers of risk for the Taiwan-based manufacturer.

Intel: The Turnaround Gamble

Intel’s struggles have been evident in 2024, with its stock plunging nearly 50% year-to-date. Its foundry division has underperformed, and Q3 revenue fell 8% year-over-year to $4.4 billion. However, the company remains determined to regain market share and relevance.

  • Strategic Moves: Intel plans to launch its next-gen Panther Lake processors in late 2025 and restructure its foundry division as an independent subsidiary to attract external customers and funding.
  • Growth Areas: The data center and AI segment posted modest 9% growth in Q3, but it lags far behind AMD’s 122% surge in the same space.


Intel’s turnaround strategy hinges on long-term projects. While its domestic fabs are unlikely to contribute meaningful revenue until 2027, the company’s low valuation—evident in a P/E ratio of 32.96—makes it a speculative opportunity for value-focused investors.

Yet, Intel’s dependence on TSMC for critical components highlights its vulnerabilities. The company’s ability to execute its turnaround plan effectively will be essential to capitalize on the anticipated recovery of the U.S. semiconductor sector.

Make U R Choice For 2025

For growth-focused investors, TSMC stands out as the clear choice. Its leadership in cutting-edge manufacturing, robust financials, and pivotal role in AI-driven demand offer a secure growth trajectory.

Intel, while a higher-risk play, presents a potential “buy the dip” opportunity for those betting on a successful turnaround. However, its long timeline for recovery and competitive headwinds make TSMC the safer and more compelling investment heading into 2025. 

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