TSMC's revenue grew by 33.9% YoY, reaching nearly T$2.9 trillion for the full year.
AInvestFriday, Jan 10, 2025 5:51 am ET
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On January 10, TSMC's (TSM.US) official website released its December 2024 revenue report. The company's sales in December 2024 reached T$278.163 billion, up 0.8% month-on-month and 57.8% year-on-year. The cumulative sales from January to December 2024 reached T$2.89 trillion, up 33.9% year-on-year.According to the report, TSMC is expected to hold a press conference to release its fourth-quarter 2024 financial report on January 16. The company expects its fourth-quarter revenue to be between US$26.1 billion and US$26.9 billion, and its gross margin to be between 57% and 59%.Citigroup analysts previously said they were bullish on Nvidia driving TSMC's AI-related revenue growth, which could surpass Apple to become its largest customer. Citigroup analysts expect TSMC's AI-related revenue to grow significantly in 2025 under Nvidia's promotion. Nvidia even has the potential to surpass Apple as TSMC's largest customer, with its revenue contribution expected to double to 20%.Recently, domestic chip stocks continued to rise, with Hesai Group (688256.SH) hitting a record high of RMB777.77, up more than 9% at one point during trading. At the close, Hesai Group rose 2.48%, and Shenzhen Chip (688368.SH) rose more than 10%. Canaan Semiconductor (688691.SH), Jiangcheng Technology (600584.SH), Verisilicon (688521.SH), and SMIC (688981.SH) also followed suit.The market generally believes that AI will drive a new round of demand. In a research report, Guojin Securities said that if 2023 was the year of AI training, 2024 was the year of AI inference, and 2025 would be the year of AI terminal applications. In this case, it is expected that 2025 will see a convergence of the "demand-capacity-inventory" cycles, driving the semiconductor industry to enter a major upcycle. CICC also mentioned that AI is the investment theme of the chip design sector in 2025, with a wide market for cloud AI computing chips.

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