TSMC's (TSM.US) Q4 earnings report is set to be released, and Goldman anticipates a continued growth in revenue and gross margin.

TSMC's (TSMC.US) fourth-quarter earnings report will be released on January 16.

Goldman expects TSMC's revenue to grow 29.4% YoY in 2024 and further 26.8% in 2025, driven by strong demand for advanced process nodes and the ongoing AI boom.

Moreover, TSMC is expected to improve its gross margin by raising the unit price of its 3nm and 5nm processes and charging a premium of over 10% for CoWoS (chip-level packaging). Goldman expects TSMC's gross margin to rise to 59.3% in 2025 from 56.1% in 2024.

Regarding the competitive landscape, the challenges from Samsung and Intel in the high-end process field have made TSMC's market position more solid. TSMC's investor conference is scheduled for 14:00 Beijing time on January 16, widely regarded as a risk test for the technology sector.

As the corporate earnings season approaches, market sentiment is complex. The technology sector is still in a painful period, but some leading companies, such as SAP SE (SAP.US) and Amazon (AMZN.US), are viewed as noteworthy "clear investment cases." In addition, the strong performance of the chip industry and continuous breakthroughs in the AI field may dominate the investment trend for a period of time.

Goldman notes that investors should pay close attention to the signals released in TSMC's earnings report tomorrow, which not only serves as a key indicator for the technology sector but also provides important references for the current global macroeconomic trends.