TSMC Surges 4% After Posting Record Q4 Earnings
Friday, Jan 17, 2025 4:40 am ET
3min read 
TSMC, the world's largest contract chipmaker, surged 4% in premarket trading on Thursday after posting better-than-expected fourth-quarter profit and a bullish outlook for artificial intelligence (AI) demand. The company, better known as Taiwan Semiconductor Manufacturing Company, reported earnings of $2.24 per U.S. share on sales of $26.88 billion in the quarter ended Dec. 31, 2024. Analysts polled by FactSet had expected earnings of $2.20 per share on sales of $26.24 billion.
TSMC's strong performance was driven by robust demand for its advanced technology nodes, leading to positive financial outcomes amid broader industry challenges. The company's customers include top fabless semiconductor firms such as Apple, AMD, Broadcom, Nvidia, and Qualcomm. TSMC's Chief Financial Officer, Wendell Huang, attributed the company's success to strong demand for its industry-leading 3-nanometer and 5-nanometer technologies.
For the current quarter, TSMC expects revenue of $25 billion to $25.8 billion, with a midpoint of $25.4 billion topping Wall Street's target of $24.92 billion. In the first quarter last year, the company posted sales of $18.32 billion. TSMC also guided to 2025 revenue growth in the mid-20s percentage range, with a consensus estimate of analysts had been for sales growth of 22% this year.
TSMC's stock price jumped more than 5% to $218.82 in morning trades on the stock market today, following the report. The company's strong performance and bullish outlook for AI demand have investors optimistic about its future prospects. TSMC's capital expenditure plan for 2025, ranging between $38 billion and $42 billion, underscores its commitment to growth and technological advancement, including expanding capacity in international locations like Arizona, Kumamoto, and Dresden.
In conclusion, TSMC's record Q4 earnings and bullish outlook for AI demand have investors optimistic about the company's future prospects. The company's strong performance and commitment to growth and technological advancement position it well to maintain its leadership in the semiconductor industry.
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