The world’s largest chipmaker, Taiwan Semiconductor Manufacturing Co. (TSMC), reported record revenue for the final quarter of 2024, bolstering the ongoing momentum in artificial intelligence investments.
TSMC’s revenue for October to December reached NT$868.5 billion ($26 billion), exceeding analysts’ forecast of NT$854 billion, according to MarketWatch’s analysis. The company’s annual revenue for 2024 totaled NT$2.9 trillion, a 34% increase from 2023. December revenue amounted to NT$278 billion, lower than the October peak of NT$314 billion.
As a key supplier of advanced semiconductors for major tech firms like Nvidia and Apple, TSMC experienced a stellar 89% rise in its U.S.-listed shares in 2024, marking its best performance since 1999. Although its shares have gained 5% early in 2024, they faced some pressure this week due to Nvidia’s muted performance following its CEO’s address at CES.
JPMorgan analysts, led by Gokul Hariharan, noted that TSMC’s strong fourth-quarter performance was driven by ramping up next-generation N3 chips for Qualcomm and MediaTek, offsetting the seasonal slowdown from Apple. The analysts expect TSMC’s January 16 earnings report to show only a 1% decline in U.S. dollar revenue, with steady demand for its advanced chips from Intel, Qualcomm, and MediaTek, alongside cryptocurrency mining demand.
Looking ahead, TSMC is poised for sustained growth, with JPMorgan forecasting a 27% increase in U.S. dollar revenue in 2025. This growth is expected to be fueled by high demand for its N3 and N5 chips, price increases, and advanced packaging technology, alongside strong GPU and AI accelerator demand and a restocking cycle for premium smartphones in China.
